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Nova KBM´s financial plan envisages a profit for 2014 | NKBM

The financial plan of Nova KBM and the Nova KBM Group, which was approved last Friday by the Bank´s Supervisory Board, envisages for the Bank to generate a net profit of €8.3 million in 2014, provided no deterioration in the economic conditions occurs. Among the priorities set for 2014 are the continuation of the restructuring of the Bank and the Nova KBM Group in order to restore their profitability, and the strengthening of customer relationships by providing first-class financial services. The Nova KBM Group´s total capital adequacy ratio is expected to remain above 16% at the end of the year. A more robust capital base will facilitate the access of the Bank to funding needed to support the local economy, with priority in financing being given to customers with good credit rating.

Nova KBM´s financial plan envisages a profit for 2014

17 February 2014
OBVESTILA
The financial plan of Nova KBM and the Nova KBM Group, which was approved last Friday by the Bank´s Supervisory Board, envisages for the Bank to generate a net profit of €8.3 million in 2014, provided no deterioration in the economic conditions occurs. Among the priorities set for 2014 are the continuation of the restructuring of the Bank and the Nova KBM Group in order to restore their profitability, and the strengthening of customer relationships by providing first-class financial services. The Nova KBM Group´s total capital adequacy ratio is expected to remain above 16% at the end of the year. A more robust capital base will facilitate the access of the Bank to funding needed to support the local economy, with priority in financing being given to customers with good credit rating.
 

The financial planning was carried out on the basis of macroeconomic projections that were supported mainly by the autumn forecasts of the Institute of Macroeconomic Analysis and Development, which anticipated a negative outlook for Slovenia. The planning took into consideration the state-sponsored recapitalisation of the Bank at the end of last year and the transfer of bad loans to the Bank Asset Management Company, both of which helped the Bank strengthen its financial position. Also taken into consideration was the obligation of both the Bank and the Nova KBM Group to comply with the commitments set out in the restructuring programme approved by the European Commission last December. According to the restructuring programme, the Bank must, among other steps, gradually reduce its total assets. Therefore, the total assets of the Bank are projected to be €3.6 billion at the end of 2014.


The Bank is aware of the importance of its role in the local economy. Because of this, it will continue to actively participate in the restructuring of troubled companies that have a good chance of revival, to finance viable projects, and to ensure the safety of deposits and appropriate financial support to existing and new customers. By further implementing the adopted cost-cutting measures, the Bank expects to reduce its operating costs by 6.4% without compromising on the quality of service provided.


At the Nova KBM Group level, the process of consolidation will continue throughout the year. For 2014, the Nova KBM Group expects to report a pre-tax, pre-provision profit, while a minor loss of €0.3 million is expected after accounting for provisioning expenses. The total assets of the Nova KBM Group are projected to be €4.5 billion at the end of 2014. Apart from the Bank, other Nova KBM Group companies will also continue implementing rationalisation measures, as a result of which the total operating costs are expected to fall by 6.8% at the Group level. As regards the provision of services, focus will be placed on the banking segment and on other segments that have the ability to generate profits. The fundamental reorganisation of the Nova KBM Group will be carried out through mergers and restructurings of the Bank´s subsidiaries. The drafting of the reorganisation plan is in the final stages, and the decisions in this regard are expected to be taken in the first half of this year.


Further information:
Karidia Toure Zagrajšek, Communication Adviser
T: +386 2 229 2716, M: +386 41 729 341, E: pr@nkbm.si