Nova KBM
 

Improvement in bad loan recovery is helping Nova KBM boost its performance | NKBM

In accordance with provisions of the Code of Best Practice for WSE Listed Companies, Ljubljana Stock Exchange Rules, and the applicable legislation, the Management Board of Nova KBM d.d. hereby makes the following notice:

Improvement in bad loan recovery is helping Nova KBM boost its performance

24 July 2013
OBVESTILA
In accordance with provisions of the Code of Best Practice for WSE Listed Companies, Ljubljana Stock Exchange Rules, and the applicable legislation, the Management Board of Nova KBM d.d. hereby makes the following notice:
 

Nova KBM Supervisory Board yesterday considered the results for H1 2013 and discussed the issues most relevant to the operations of the Bank. The H1 2013 results reflect Nova KBM´s healthy financial profile, particularly its strong liquidity. Measures aimed at improving the Bank´s performance and its capital structure are being actively implemented, as are the actions taken by the management to restructure the Bank´s loan portfolio and improve the collection of bad loans. The supervisors were informed of the recent decision of the Government of the Republic of Slovenia that Nova KBM had met all the criteria to start implementing the bank stability programme. Based on this decision, Nova KBM will continue its preparations to transfer bad loans to the state-run Bank Assets Management Company.


During the first half of the year, Nova KBM continued implementing measures and organisational changes aimed at improving its performance and reducing the volume of bad loans. Following the restructure of the Bank and the transfer of its bad loans to the Bank Assets Management Company, the management expects the provisioning expenses to be below the 2012 level, unless the economic situation deteriorates unexpectedly and significantly in the coming months. In its lending business, the Bank continues to pursue the policy of conservative, responsible and prudent management, taking into consideration the management of all types of risk. This means the Bank is willing to grant loans to both corporate and retail customers, provided they have perspective projects, meet all the necessary criteria, and are able to offer sufficient collateral.