Ljubljana, 05 August (STA) - The group around Slovenia's largest bank, NLB, reported a loss of EUR 36.4m for the first six months of 2010 on Thursday, which compares to a EUR 5.1m loss in the same period last year. The core bank recorded a EUR 20.1m loss, after still ending EUR 35.7m in the black in the first six months of 2009.
Writedowns and bad loans provisions for the group stood at EUR 164.4m, a 43% year-on-year increase, the bank said in a press release.
The NLB group generated EUR 227.4m in net tax revenues, which is 13% more than in the first six months last year, while the core bank's revenues were at EUR 140.7m, also a 13% increase.
According to the bank, this is primarily the result of higher interest margins, which increased because of lower interest revenues from household deposits and new loans taken out on international financial markets.
The bank's total assets remained unchanged compared to the end of 2009, at EUR 19.58bn, as operations were marked by a decrease in deposits from the non-banking sector, a stagnation of net credit growth and an increase of the share of securities in total assets.
Crediting of the non-banking sector was at EUR 12.3bn, which is the level recorded at the end of 2009. Gross crediting to households was up by EUR 72.7m, to businesses by EUR 48.8m, while loans to the state were down by EUR 12.2m.
The group's capital adequacy is estimated at 10.7%, while Tier 1 capital is at 6.7%. For the core bank, the figures are at 10.6% for capital adequacy, a 0.2 percentage points increase compared to the end of 2009, and 7.4% for Tier 1 capital.
By introducing a more conservative crediting policy and sustaining an adequate provisions level, the companies in the NLB group are "at least partially ready for a possible continuation of the global financial crisis and recession in the second half of 2010 and in 2011", the management said.