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Audited Annual Report 2018: Nova KBM is successfully pursuing the "Best Bank 2020" vision | NKBM

Audited Annual Report 2018: Nova KBM is successfully pursuing the "Best Bank 2020" vision

Audited Annual Report 2018: Nova KBM is successfully pursuing the "Best Bank 2020" vision

22 March 2019
OBVESTILA
Nova KBM decisively pursued the Strategic Plan which sets up an ambitious vision for Nova KBM d.d. to become the best bank in Slovenia in 2020. The progress and positive shifts are reflected in all strategic areas: client excellence, growth and profitability, effective risk management and compliance, operational efficiency, and organizational culture and development of employees.
 

The Nova KBM Group closed the year 2018 with a net profit of €72,49 million., while Nova KBM generated the profit of €75,52 million. The achieved return on equity after taxation at the end of 2018 was 10.59% at the Bank and 10.03% at the Group level. The capital adequacy ratio remains high, namely 19.59% and 20.13% for the Bank and the Group respectively, the results also show good liquidity position. The total balance sheet of Nova KBM Group increased and amounted to €4,998 billion.

The activities in the field of non-performing loans management were also successful. In 2018, the share of non-performing loans in the Bank’s portfolio decreased by 3.88 percentage points, and in the Group’s portfolio by 4.22 percentage points, which demonstrates a positive trend in both decreasing the volume of non-performing exposures and increasing repayments and restructured claims. The quality of the lending portfolio and the discipline in following the criteria for loan approvals have also improved.

Positive shifts and the successful performance of the Bank are also shown in the improved credit ratings the Bank was assigned in 2018. Moody's Investor Service improved the long-term deposit rating of Nova KBM by two notches, from Ba2 to Baa3, while Fitch Ratings confirmed Nova KBM’s Long-Term Issuer Default Rating at BB, and changed the outlook from stable to positive due to improved operations, further high potential for improvements in profitability, and a decrease in non-performing loans.

Nova KBM increased its market share in significant segments as a result of a well-thought-out business, sales and marketing strategy, positive changes in internal organisation and culture, and the commitment of all employees. With its more than 800 banking points, Nova KBM is the most accessible bank in the country. In recent years, we have successfully set up the model of specialised bank offices (SBOs) in post offices. At the end of 2018, there were 10 SBOs in the network, and this service is planned to be further expanded in the future.

Digitalisation remains a priority development area in Nova KBM. In 2018, we introduced several e-services that simplify financial transactions of customers. As a result, the Bank recorded a record-breaking use of digital services in 2018, and research has shown that customers are increasingly satisfied with these services.

 

The Bank incorporates its efforts on social responsibility and sustainable development in all levels of its operations. By doing so, Nova KBM does not only provide for active compliance with the law, ethical rules and national and international standards, but also satisfies its own interests in the context of long-term strengthening of a broader society welfare and preservation of the natural environment.

John Denhof, CEO: »We are proud of the results achieved that clearly demonstrate our strategic focus, hard work of our employees and client excellence. We have many additional plans, challenges and ideas on how to further improve our performance. Nova KBM is decisively on the track to become the best bank in Slovenia.«

Dr. Andrej Fatur, president of the Supervisory Board: “In 2018 Nova KBM successfully implemented the strategic development plan which is supported also by the Bank’s owners and SB, that share the same goals with the Management Board and employees in the area of improving the operations, digitalization, focusing on clients and sustainability.”