Nova KBM makes a profit also in the third quarter of the year | NKBM

In the period from 1 January to 30 September 2014, Nova KBM generated a pre-tax, pre-provision profit of €57.1 million, more than double the figure reported for the same period last year (€21.8 million). The pre-tax profit from continuing operations recorded by Nova KBM in the first nine months of the year was €22.3 million, while its net profit hit €17.8 million. Net interest income totalled €68.1 million (9M 2013: €51.1 million), net fee and commission income totalled €31.5 million (9M 2013: €31.2 million), and other non-interest income reached €11.2 million (9M 2013: a loss of €1.5 million), with the income earned on the sale of securities making up the largest proportion of the latter figure. The year-on-year increase in the net interest income was the result of an almost 50% drop in interest expenses, while the interest income saw a decline of just over 10%.

The interest margin, calculated on the average total assets, registered an increase in the first nine months of the year and reached 2.38%, against 1.44% recorded in the same period last year. In line with the commitments set out in its restructuring programme, Nova KBM continued taking steps to cut down on its operating costs. The year-on-year decrease of 9.1% in operating costs was attributable to a decline in material and service costs as well as staff costs, with the latter falling by 7.0%. During a one-year period from 30 September 2013 to 30 September 2014, the number of staff working at Nova KBM was reduced by 96.

At the end of September 2014, Nova KBM´s total assets amounted to €3,611.9 million, down €298.1 million, or 7.6%, on the end of 2013. This reduction was in line with the requirements of the restructuring programme. Nova KBM´s market share in loans to and deposits from the non-banking sector stood at 7.4% and 10.2%, respectively, with customer deposits placed with Nova KBM registering an increment of 6.0% in the first nine months of the year. The customer net loans-to-deposits ratio fell in the first nine months of the year by just over nine percentage points, to reach 67.72% at the end of September 2014.

As of 30 September 2014, Nova KBM´s total equity amounted to €564.5 million, up €46.8 million on the end of last year. This increase was partially a result of the net profit generated by Nova KBM in the first nine months of the year, and partially due to the increase in the prices of securities that are valued through equity. Nova KBM´s total capital adequacy ratio was 24.54% at the end of September 2014.

The restructuring of the Nova KBM Group is being carried out in accordance with the commitments given to the European Commission. The Nova KBM Group is gradually concentrating on its core business, banking, while at the same time making efforts to divest and dispose of its non-strategic assets. In addition, work is in progress to partially integrate the operations of PBS into those of Nova KBM, and to restructure the Nova KBM Group´s leasing companies, while the liquidation of KBM Fineko is nearing completion. Provided the current economic trends are preserved, Nova KBM expects to end the financial year of 2014 with a profit.