Slovenian Bank Nova KBM Cuts Profit Forecast for '09 Due to Worsening Economic Conditions

"The net profit is to be lower due to increased impairment charges and provisions. The Nova KBM Group and the Bank will make impairment charges and provisions of 56.3 million euro and 47.3 million euro, respectively," Nova KBM said in the statement, following the approval of the new projections by its Supervisory Board.

In December 2008, the company projected for 2009 a net profit of 51.5 million euro for the group and of 33.9 million euro for the bank.

According to the revised business plan, the company’s total assets will remain approximately as originally planned, at 5.8 billion euro for the group and at 4.8 billion euro for the bank, the company said in the statement.

“The economy is confronted with lower investments, deteriorated performance, drop in consumer consumption and increase in the level of unemployment. Therefore, the Nova KBM Group and Nova KBM give preference to stability over growth in accomplishing this year's business objectives, taking into account economic and financial market conditions,” the bank added.

Nova Kreditna Banka Maribor said it is the second largest bank in the country. It serves some 300,000 clients.

($= 0.6759 euro)