Nova KBM
 

First information on the results of Nova KBM for the period January – June 2015 | NKBM

In accordance with the applicable legislation and good business practice, Nova KBM hereby gives the following notice:

First information on the results of Nova KBM for the period January – June 2015

31 July 2015
OBVESTILA
In accordance with the applicable legislation and good business practice, Nova KBM hereby gives the following notice:
 
In the first half of 2015, Nova KBM delivered a profit, while continuing to both restructure the Nova KBM Group and implement the commitments made to the European Commission.

For the six-month period ended 30 June 2015, Nova KBM reported a pre-tax, pre-provision profit of €33.4 million. Its profit from continuing operations totalled €25.9 million, while its net profit hit €22.5 million.

Financial and operating income generated by Nova KBM in the first half of the year amounted to €67.6 million, with the net interest income, net fee and commission income and other non-interest income, respectively, making up €40.4 million, €20.2 million and €7.0 million of this figure.

Operating costs incurred by Nova KBM in the first six months of 2015 totalled €34.3 million, down 3.3% on the same period a year ago. The year-on-year reduction in the level of operating costs was consistent with the requirements of the European Commission.

Net provisioning charges recorded by Nova KBM in the first half of the year totalled €7.4 million.

In the period from January through June 2015, Nova KBM´s interest margin, calculated on the average total assets, stood at 2.29%.

As of 30 June 2015, Nova KBM´s total assets amounted to €3,540.0 million, down €68.2 million, or 1.9%, on the 2014 year-end figure. This reduction in total assets was in line with the requirements of the European Commission.

Net loans outstanding to customers declined in the first half of the year by €60.0 million, to reach €1,533.3 million at the end of June 2015. Although the repayments of loans by borrowers caused the balance of the total lending to fall in the recent period, the volume of new loans granted by Nova KBM over the past couple of months to both retail and corporate customers was above the monthly average of the year so far.

Customer deposits amounted to €2,471.7 million at the end of June 2015, an increase of €5.6 million on the 2014 year-end figure.

At the end of June 2015, Nova KBM´s total equity amounted to €591.7 million, an increase of €11.4 million on the 2014 year-end figure, partially as a result of the net profit reported for the first half of the year, and partially due to an increase in the market price of securities which are fair valued through equity.

The Nova KBM Group is continuing to implement its restructuring programme in accordance with the commitments given to the European Commission: it is gradually concentrating on its core business, banking, while at the same time making efforts to divest and dispose of its non-strategic assets.

Most of the work related to the consolidation of the Nova KBM Group is expected to be accomplished by the end of 2015. In this regard, in the first half of the year, an assessment began of the possible scenarios for integrating the operations of PBS into those of Nova KBM. On 23 March 2015, Adria Bank returned its licence for providing banking services, after which it changed its name and legal form to Adria Abwicklungs (GmbH). At the Shareholders´ Meeting of Adria Abwicklungs held in June, a decision was made to initiate its liquidation. In April 2015, the Shareholders´ Meeting of KBM Leasing Hrvatska made the decision to wind up the company.

With a view to reducing the level of its distressed assets, Nova KBM has adopted the NPL strategy, in addition to concentrating the management of its distressed loans and other assets within a single organisational unit. This will not only make it possible for Nova KBM to restructure its non-performing exposures in an efficient and timely manner, but will also facilitate the recovery and/or the sale of its distressed assets. To identify as early as possible an increase in its exposure to credit risk resulting from any of its customers falling into financial difficulties, Nova KBM intends to fully implement the EWS tool by the end of the year.

This notice will be available on Nova KBM´s website (www.nkbm.si) from 31 July 2015.

Management Board of Nova KBM d.d.
Date: 21 July 2015