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Unicredit Slovenia Reports 18% Rise in H1 Pre-Tax Profit

Ljubljana, 04 August (STA) - Unicredit banka Slovenije announced a pre-tax profit of EUR 9.5m for the first six months of the year on Thursday, noting that this was a rise of 17.8% on the same period last year.

The bank, which is member of Italy's Unicredit Group, attributed the increase in earnings to a 23% rise in revenues. These amounted to EUR 42.2m in the first half of the year.

Net interest revenues went up by 19.6% year-on-year to EUR 29.8m. Revenues from interest earned from loans to clients rose as a result of higher margins, while interest revenues from inter-bank deposits dropped. Net revenues from commissions increased by 10.7%.

Operating costs increased by 6.5% to EUR 19.8m, mainly owing to new hiring and investment in the expansion the bank's network of branches.

Operating profit of what is the fifth largest bank in Slovenia amounted to EUR 22.4m in the first half of the year, which is 42.5% up on the same period last year.

Provisions increased by 70% to EUR 12.9m. These were due to delays in the payment of loans and adjustment to new standards in the calculation of capital adequacy for loan risks based on internal rating systems.

The bank's total assets were EUR 2.97bn at the end of June, down 0.9% on the end of 2010. The decrease was mainly due to a 11.2% contraction in inter-bank operations.

Loans to the non-banking sector rose by 0.6% to EUR 2.32bn, while clients' deposits grew by 20%.

The bank increased its capital by EUR 53m to EUR 251m in the first half of they year; capital adequacy ratio was 9.9%, according to a press release from Unicredit banka Slovenije.

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