Ljubljana, 11 May (STA) - Following five consecutive quarters in the red, the state-own NLB bank reported a EUR 3.4m net profit of the core bank and a EUR 3.9m net profit at group level for the first quarter of 2011 on Wednesday.
The country's biggest bank highlighted strict implementation of measures, a cut in operating costs and fewer additionally formed provisions as the key reasons for the positive result.
The NLB group recorded a EUR 62.1m first quarter profit before provisions, down EUR 55m after impermanent and provisions.
The group's total assets stood at EUR 18.5bn at the end of March, up 4% from the end of December 2010.
Total non-bank deposits increased by EUR 522m to EUR 10.9bn, especially on account of deposits by the state. Loans to the non-banking sector on the other hand decreased by EUR 144m to amount to EUR 11.7bn.
The report follows a EUR 250m capital increase at NLB, which also helped raise the capital adequacy ratio to an estimated 12% on 31 March. This is 1.8 percentage points above the ratio at the end of 2010.
The first quarter profit ends a negative streak at NLB which began back in 2009, when the bank reported a EUR 82m loss at the end of the year.
The situation further deteriorated in 2010, when the loss increased to EUR 202m due to write-downs and provisions stemming from bad loans.