12 May 2010
In the first quarter of 2010, NLB Group recorded loss after tax in the amount of EUR 2.7 million, the main reason for such poor result being the high levels of established impairments and provisions. The tendency of establishing high levels of loan impairments and provisions continues in 2010 because of deteriorated credit portfolio. In the first quarter, NLB Group thus established provisions and impairments in a total amount of EUR 70.3 million.
The Groups profit before provisions, amounting to EUR 66.8 million, was satisfactory, even by one third better than in the same period of the previous year when it totalled EUR 48.9 million. The volume of revenues grew and more emphasis was put on cost management.
The total scope of non-bank deposits thus dropped by EUR 334.5 million in the first quarter, mainly due to the maturity of deposits placed by the Ministry of Finance of the Republic of Slovenia. As expected, corporate deposits also fell somewhat, in line with the existing economic situation, while retail deposits grew by EUR 59.4 million. Corporate and household loans grew by EUR 127.2 million.
At the end of the first quarter of 2010, the estimated capital adequacy of NLB Group was 10.5% which is 0.17 percentage points lower than at the end of December 2009. This decline was mainly due to a decrease in capital (due to loss in 2009), with capital requirements stagnating at the level recorded in the previous year.
NLB, Investor Relations