Nova KBM performed well in the first six months of 2011. For the period from 1 January to 30 June 2011, the Bank reported a pre-tax profit of €7.0 million from continuing operations, which is 50.1% of the annual projection. Net profit amounted to €5.6 million.
The Bank's total assets at the end of June were €4,766.2 million, down €40.3 million, or 0.8%, from the 2010 year-end. As of 30 June 2011, the Bank's market share in terms of total assets was 9.6%, the same as at the beginning of the year.
In the period from January through June 2011, net interest income amounted to €51.6 million, which is 48.0% of the annual projection. Interest margin, calculated on the average total assets, stood at 2.17%, which is 0.03 percentage points below the projection. Net fee and commission income totalled €22.2 million, or 54.5% of the annual projection. The Bank covered 53.5% of its administration costs, including depreciation and amortisation, with net fees and commissions.
The Bank's profit before provisions and impairment losses was €38.3 million, which accounts for 55.9% of the annual projection. Due to slower than expected economic recovery, resulting in further deterioration in its loan portfolio, the Bank had to recognize higher than projected net provisions and impairment losses, which totalled €31.6 million, or 57.5% of the annual projection.
As of the end of June, net loans and advances to customers were €3,427.9 million, a decrease of €77.9 million, or 2.2%, from the end of 2010. Nova KBM's market share in loans to the non-banking sector decreased by 0.2 percentage points to 10.0% at the end of June.
Deposits from customers totalled €3,117.1 million at the end of June, up €92.2 million, or 3.0%, on the 2010 year-end figure. The Bank's market share in deposits from customers fell by 0.1 percentage point to 12.8% at the end of June. The ratio of net customer loans to customer deposits stood at 110% at the end of June (2010 year-end: 115.9%).
The Bank's total equity at the end of June 2011 was €478.4 million, an increase of €103.1 million, or 27.5%, from the end of 2010. The total capital adequacy ratio of the Bank as of 30 June 2011 was 12.45%.
