Business News

NKBM Reports EUR 15M Net Profit for H1

Maribor, 31 July (STA) - Slovenia's second-largest bank NKBM finished the first half of the year with a net profit of EUR 14.8m, a noticeable improvement over the EUR 44m loss in the same period a year ago.

While the Maribor-based bank continued to record writedowns and impairments from toxic loans, at EUR 20m these were down by nearly two-thirds compared to the first half of 2013.

Meanwhile, it saw net interest revenues rise to EUR 44.1m, after standing at EUR 31.8m a year ago (a 22.6% drop).

Additionally, commissions rose by 4.5% to EUR 21.1m, while other non-interest revenues amounted to EUR 8.2m.

NKBM said that, barring a major deterioration in the economic environment and additional regulative demands from the European Central Bank (ECB), it expects to finish the year in the black.

The bank stressed it was pressing ahead with restructuring efforts following the December 2013 state bailout.

Operating costs fell by 9.3% year-on-year and labour costs were down by 7%, it added.

Its total assets contracted by 6.1% from the start of the year to EUR 3.67m due to the ongoing reduction in its financial commitments and loan portfolio.

The bank's capital adequacy stood at 23.52%.

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