Business News


NKBM Sees Its Profit Fall by 20%

Maribor, 09 February (STA) - The group around Slovenia's second largest bank, NKBM, saw its pre-tax profit from continuing operations slump by 20% to EUR 17.4m last year, according to unaudited results posted on the web site of the Ljubljana Stock Exchange.

The parent bank generated EUR 15.1m in pre-tax profit from continuing operations, or EUR 12.1m after tax in 2009, which is 25% down from 2008. Yet both the group and the bank trumped targets by 8.6% and 3.9%, respectively, the release says.

The group increased its total assets by 5.4% to EUR 5.79bn, while the bank's total assets were up by 4.9% to EUR 4.79bn. The rise reflects a nearly 11% increase in deposits from the non-banking sector, which include the deposit of EUR 325m placed by the government in April.

The group's profit before provisions and impairment charges rose by 28% to EUR 94.8m, due to higher net fee and commission income, and interest income. The bank's profit before provisions and impairments also rose by nearly 29% to EUR 70.8m.

NKBM said its profitability was "strongly affected by the decline in quality of the loan portfolio as a result of recession and aggravated economic conditions". Net provisions and impairment charges amounted to EUR 77.4m for the group and EUR 55.7m for the bank.

The group's associated insurance company, Zavarovalnica Maribor, reduced its loss of EUR 20.2m in the first half of 2009 to EUR 0.6m by the year-end. Profitable performance in the second half was mainly due to the reduction of half-year loss in the non-life insurance segment by EUR 12.6m.

Loans to the non-banking sector increased by 1.2% at the level of the group and by 1.6% at the level of the bank. The most substantial was the increase in loans to households (up 6.2%). NKBM retained a 9.9% share of the market in that segment.

You might be also interested in:

GET IN TOUCH

We are here to help you.