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NKBM Tripled Loss in 2013 to Record EUR 648m

Ljubljana, 28 February (STA) - NKBM, Slovenia's second largest bank, posted a group net loss for 2013 of a record EUR 648.4m, a three-fold increase over the year before, as provisioning surged in the run up to the mid-December bailout and nationalisation.

Profit before tax and provisions from continuing operations topped EUR 61.8m, but impairments and provisions amounted to EUR 673.4m, the bank said Friday.

NKBM received fresh capital of EUR 870m as part of the mid-December bailout, which raised its Core Tier 1 capital ratio to 19.1% from 5.26% in the year before.

It also started to offload bad loans to the Bank Assets Management Company (BAMC), but the process is not yet completed so it is unclear to what extend soured loans still weighed down on the bottom line.

All other figures in the unaudited results show it has shrunk significantly.

Total assets dropped by almost a tenth to EUR 4.83bn, loans to the non-banking sector plunged 33% and non-banking deposits dropped 15%.

Net interest income, a key source of money for banks, slipped by a quarter to just over EUR 78m.

Only net gains from securities and foreign exchange trading showed a positive trend, increasing more than two-fold to EUR 57m.

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