»Nova KBM has strong liquidity and capital positions. Recently, a number of steps have been taken to grow its business. According to the latest macroeconomic forecasts, the current strained market conditions are likely to persist throughout the year, which will certainly have an adverse effect on the results of the Bank. We believe that the projected capital increase, as well as a new strategy and the restructuring of operations, will consolidate the financial position and performance of both the Bank and the Nova KBM Group«, said Aleš Hauc, President of Nova KBM’s Management Board.
The 2012 unaudited accounts of Nova KBM and the Nova KBM Group will be released in accordance with the financial calendar, presumably at the end of February. The Bank is expected to report a profit before provisioning expenses and a loss from continuing operations. Due to the deteriorated market conditions, further loan loss provisions, and negative macroeconomic forecasts for 2013, the Bank projects to post a loss for this year, which, however, is expected to be lower than that of 2012. In 2014, a pre-tax profit from continuing operations is projected to be generated.
The Management Board presented to the Supervisory Board an indicative capital raising plan. The preparatory activities are under way, and the Bank will keep its shareholders and the interested public updated on any details related to the share capital increase, in accordance with the principles of equitable provision of information and the stock exchange rules.
The supervisors were also informed of the progress made in the drafting of the new strategy of the Bank. Furthermore, they were presented a proposal for a new organisational structure of both the Bank and the Group, the principal objectives of which are to make the business processes more efficient, to reduce costs, and to focus even more on customers. The reorganisation will involve an overhaul of working processes and, where appropriate and economically feasible, the streamlining and unification of businesses. In line with the reorganisation, the Bank intends, among others, to change the number and the structure of management and certain other positions, as well as to centralise and strengthen the commercial departments. Also, the Bank’s working procedures will be standardised, the development function upgraded and the risk management system improved.
