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NKBM Posts Q1 Loss, Expects Recovery in 2014

Maribor, 25 April (STA) - NKBM, Slovenia's second largest bank, said Thursday it posted an operating loss of EUR 6.2m for the first fiscal quarter of 2013 after booking over EUR 12m in impairments and provisions.

This compares to a small operating profit in the first quarter of last year, which it ended with a record-breaking EUR 205m net loss, but the bank nevertheless believes the worst is over.

"We expect an operating loss for the whole year, but we are more optimistic about 2014," CEO Aleš Hauc was quoted as saying in a NKBM press release.

Hauc thinks impairments would be lower than last year, as the bulk of the credit portfolio has already been revalued.

NKBM says it is meeting capital requirements, having had a Core Tier 1 capital ratio of 7.62% at the end of the quarter.

The bank will seek fresh capital at the June meeting of shareholders, but the amount of the share issue has not yet been determined.

The recapitalisation will be underpinned by a restructuring plan that has already been submitted to the European Commission and involves streamlining, disinvestment and reduction in total assets.

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