Business News


NLB Posts Record-Breaking Loss

Ljubljana, 28 February (STA) - Slovenia's largest bank, NLB, reported a group net loss for 2013 of EUR 1.44bn, a five-fold increase over the year before and the biggest loss in Slovenian corporate history, on the back of writedowns that exceeded a billion euros.

The figures are even worse for the parent company, which was EUR 1.54bn in the red at the end of the year, according to unaudited results released on Friday.

The results mark a low for the bank, but they also reflect the finalisation of restructuring that included a bailout in mid-December involving a EUR 1.5bn capital injection, and full nationalisation.

The detailed figures show across-the-board deterioration in key indicators.

Total assets dropped by 17% to EUR 9.5bn, mostly on account of the transfer of non-performing loans to the Bank Assets Management Company (BAMC).

Loans to the non-banking sector dropped by a fifth to EUR 7.74m, though this could largely be a result of the conversion of government deposits into capital, as was the case with NKBM bank.

Crediting of companies plunged by nearly a third to EUR 5.5bn.

Net profit before provisioning and one-off events totalled only EUR 15.5m, an 88% drop over the year before.

The bailout however raised the bank's capital ratio, as the Core Tier 1 capital ration stood at 16.7%.

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