Operations of the Nova KBM Group in the previous year were marked by a deterioration in market conditions and a slower than expected recovery of the domestic economy, which was reflected in net provisions and impairment losses being above the projections. The construction industry and financial holdings divisions were hit the most by the recession. For these two sectors, the Bank made the largest amount of provisions and impairment losses, resulting in lower profit for both the Bank and the Group.
Nevertheless, the results remain promising. Both the Bank and the Group delivered a profit and registered an increase in total assets compared to 2009.
The Nova KBM Group's total assets at the end of 2010 were €5,866.6 million, an increase of €81.0 million, or 1.4%, from the end of 2009. The Group delivered a profit from continuing operations before provisions and impairment losses of €101.2 million and net profit of €11.4 million.
Total assets of Nova KBM d.d. at the end of 2010 were €4,806.5 million, up €17.1 million, or 0.4%, from the 2009 year-end. The Bank delivered a pre-tax profit of €11.4 million from continuing operations, while the net profit was €9.4 million. Higher-than-projected net interest, net dividend income and other net operating income contributed the most to this result.
2010 was an encouraging year, as the Bank and the Group implemented their targeted growth strategy. To that effect, Nova KBM recapitalised the Serbian bank Credy banka on 31 March last year. In November 2010, it injected additional capital of €10.0 million into Credy banka, thus becoming a 72.38% shareholder of the bank. For 2010, Credy banka reported a net loss of €8.1 million, while its total assets at the end of last year amounted to €101.7 million.
Upon the publication of unaudited result of operations, Matjaž Kovačič, President of the Management Board of Nova KBM d.d., said: ”Uncertain economic and financial conditions in the Slovenian and global financial markets had most definitely an impact on our operations during 2010. However, unlike common trends in the Slovenian financial system, we performed positively and were able to increase our total assets while supporting to Slovenian companies through the recession. By increasing our share capital, which we intend to carry out through the listing of Bank shares on the Warsaw Stock Exchange, we will ensure an even more rapid growth of Nova KBM and will continue to service the needs of the Slovenian economy.”
Last year, Nova KBM presented an upgraded version of Bank@Net to the users of its online banking service, a so-called new generation Bank@Net, enhancing the group’s service offering to retail customers.
In line with its strategy, during 2010 Nova KBM expanded its branch network. By opening three modern designed branch offices in which, the Bank offered its customers a different, innovative, personal, but also professional approach to products and services within the Bank.
Currently, Nova KBM Group is preparing to increase its share capital alongside an additional listing of shares on the Warsaw Stock Exchange. This share capital increase, which is forecast to be completed in the second quarter of the year, will help the Bank and the Group achieve further growth in its operations.
For further information please contact:
Andrej Krajner, Nova KBM Magda Kołodziejczyk, M+G
T: +386 1 23 91 224 T:. + 48 22 625 71 40
M: +386 41 550 222 M: +48 501 16 88 07
E: mediji@nkbm.si E: magda.kolodziejczyk@mplusg.com.pl
About Nova KBM
The Nova KBM Group is the second largest banking group operating in Slovenia, as measured by total assets, loans and deposits according to the Bank of Slovenia as at 31 December 2010. It provides mainstream banking services, investment banking services, modern banking channels as well as other financial services and advice to individual and corporate customers. Nova KBM operates through its subsidiaries and affiliates also in Austria, Serbia and Croatia. Its Austrian subsidiary bank is present also in the Czech Republic, Slovakia, Hungary, Montenegro and Republic of Macedonia.
Branch network in Slovenia is composed of 96 branch offices (including 6 PBS branches and over 550 post office branches through Postna Banka Slovenije, a subsidiary of Nova KBM. Nova KBM has over 350 000 retail clients and over 11 000 corporate clients.
In recent years Nova KBM received the title “The bank of the year” in Slovenia (The Bankers, Financial Times) and many other professional awards.
Not for release, directly or indirectly, in the United States of America, Australia, Canada or Japan.
The securities referred to herein have not been and will not be registered under the US Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States or to US persons unless the securities are registered under the Securities Act, or an exemption from the registration requirements of the Securities Act is available. No public offering of the securities will be made in the United States.
Disclaimer
This publication is for promotional purposes only and under no circumstances shall it constitute the basis for a decision to invest in securities of Nova Kreditna banka Maribor d.d. (the “Company”). The offering prospectus (the “Prospectus”), prepared in connection with the offering of the rights to subscribe for the shares in the Company to existing shareholders in Slovenia and public offering to investors in Poland and admission of the Company’s shares to be issued to trading on the Ljubljana Stock Exchange (the “LJSE”) and all of the Company’s shares to trading on the Warsaw Stock Exchange (the “WSE”), is the sole legally binding document containing information on the Company and the public offering of its shares in Slovenia and Poland (the “Offering”).
The Prospectus will be submitted for approval to Agencija za trg vrednostnih papirjev, the Slovenian Securities Market Agency („SMA“), and will be made available to the public once approved and all the conditions provided under Art. 72 of the Slovenian Market in Financial Instruments Act and Art. 37 of the Polish Public Offering Act dated 29 July 2005 are met, i.e., once the SMA approves the Prospectus and once the Polish Financial Supervision Authority has been notified by the SMA of the approval of the Prospectus and has received a certificate of the approval of the Prospectus along with the Prospectus and a translation of its summary into Polish.
The Prospectus in electronic form will be available on the website of the Company www.nkbm.si and the WSE (www.gpw.pl).
