Nova KBM

Successful performance of Nova KBM in 2023 and continued growth in international OTP Group | NKBM

Successful performance of Nova KBM in 2023 and continued growth in international OTP Group

Successful performance of Nova KBM in 2023 and continued growth in international OTP Group

14 March 2024
Nova KBM published its Annual Report of Nova KBM Group and Nova KBM d.d. for financial year 2023. As shown in the report, Nova KBM registered excellent performance results and further solidified its position as the most accessible bank in Slovenia. The bank closed the financial year with EUR 189.3 million in net profit, while Nova KBM Group closed the year with EUR 203.8 million in net profit. The release of the Annual Report was accompanied by the release of the ESG Report, which outlines the bank’s activities and achievements from an environmental, social, and governance perspective.  
Nova KBM Group came under the ownership of OTP Group in the beginning of 2023 and became its 11th member. The bank thereby gained a strong strategic owner. Ever since the change of ownership, the bank has been actively preparing for the merger with SKB banka, which is expected in 2024. Despite the change of ownership Nova KBM further solidified its position in 2023 as the most accessible bank in the country that provides its clients with best-in-class and comprehensive financial services, with most of them available anytime, anywhere.

Both the bank and Nova KBM Group operated at a profit in 2023 and thereby ensured the foundation for long-term sustainability and resilience, all while positioning themselves to continue investing in development and socially responsible conduct. The return on capital after tax for the financial year ending 31 December 2023 was 19.79% for the Group and 18.39% for the bank. Following the change of ownership, the rating agency Moody’s also improved Nova KBM’s long-term credit risk rating last year to A3 and modified its future outlook rating to stable. The bank’s credit rating is thus A3/P-2 (Moody’s) and BBB-/F3 (Fitch). The Group fully complies with regulatory requirements in all of its operations and in all aspects.

Nova KBM Group also maintained the role of an important primary dealer of bonds and treasury bills of the Republic of Slovenia and held the role of official market maker for Slovenian government bonds on the MTS Slovenia market, which is one of the leading bond trading platforms in the European Union. In June 2023, Nova KBM issued and successfully completed the sale of EUR 400 million of 3-year bonds with a 2-year call option.

Nova KBM Group also kept delivering on its ESG Strategy that focuses on greater sustainability in order to enhance competitiveness and attractiveness. By way of the Strategy the Group endeavours to systematically manage environmental and social aspects and ensure high corporate governance standards, and thereby lead by example. Seeing that financial institutions will undoubtedly play a key role in financing the transition to a low-carbon and more sustainable economy, the bank joined the s. c. Green Loan Framework in 2023, which is OTP Group’s programme in this field. Last year, Nova KBM sourced its electricity exclusively from renewable sources and expanded its electrical vehicle fleet with new units. Major social responsibility campaigns of the bank include the record-breaking donation of EUR 2.2 million that the bank, together with SKB banka and the Hungarian OTP Bank, made to first responders after the August 2023 floods. The donation was made to the Firefighters’ Association of Slovenia, the Mountain Rescue Association of Slovenia, and the Slovenian Red Cross.  Ž

For more ESG activities and the ESG journey outlined for the future, please visit ESG reports.

Successful business performance and the broader corporate responsibility of Nova KBM Group are further reflected in surveys and awards the Group received in various business lines. This is the fourth year in a row that the bank was awarded the Superbrands title, which puts it among the 1% of the most successful brand names in Slovenia; Nova KBM’s online and mobile bank were ranked as the best in Slovenia for the fourth year in a row according to a survey by independent research agency E-laborat; the bank also received the Euromoney Award for Excellence as the best Slovenian bank; for the second year in a row, it successfully secured the Green Star certificate, awarded by CER – Partnership for a Sustainable Economy, which puts it among the Green Leaders; and received the Horus Award for strategic integrity, awarded by IRDO – Institute for the Development of Social Responsibility, for the fourth year in a row.

Nova KBM is looking at another milestone in its more than 160 year long tradition in the second half of 2024; the legal and operational merger with SKB banka, another OTP Group member. Both banks have been working on various shared projects since the beginning of 2023, such as the donation referred to earlier, and share a common ATM network. Since the beginning of this year, Nova KBM and SKB banka clients can use their personal Visa debit card to withdraw cash completely free of charge on ATMs of most OTP Group members. Aside from Slovenia, this benefit is now available in Hungary, Croatia, Serbia, Montenegro, Romania, Bulgaria, Albania, Ukraine, and Moldova. The option to make free-of-charge cash withdrawals in ten countries further increases the competitive advantage of both banks in Slovenia and brings important added value and benefits for our clients.

John Denhof, President of the Management Board of Nova KBM, after the release of the Annual Report: “Our performance results prove that Nova KBM had an excellent business year in 2023. Together with our new strategic owners, OTP Group, we continued our trend of successful performance and our focus on growth, sustainable profitability, and client excellence, as proven by the steadily growing number of satisfied users of our services. We are again among the recipients of numerous awards and certificates, which are a testament to our continued growth and innovation. Together with our owner, we created a solid foundation to grow further and to complete the merger with SKB banka that awaits us in the near future. I’d like to use this opportunity to thank, first and foremost, my colleagues for their dedicated work in times of change, and our clients and partners for their trust and cooperation. I have nothing but confidence looking to the future, which will be marked by client excellence, development, growth, and social responsibility.”
In 2023, OTP Group generated adjusted consolidated profit of EUR 2.6 billion, which is 74% more compared to 2022. Primary contributors to improved results include growth of net banking income, both net interest income and net non-interest income, and lower cost of risk compared to the same period last year. Return on equity based on adjusted profit was 27.7% (+9.0 percentage points compared to last year), while capital adequacy was 18.9%.

The Annual Report of Nova KBM Group and Nova KBM d.d. and the ESG Report are available at Financial reports and document.
Nova KBM Nova KBM Nova KBM
Nova KBM Nova KBMNova KBMNova KBM