March 6 (SeeNews) - Slovenia's largest lender, state-owned Nova Ljubljanska Banka (NLB), said it booked a consolidated net profit of 110 million euro ($116.9 million) in 2016, up 20% from a year earlier.
The NLB Group operates with six banking entities in five markets (Serbia, Montenegro, Macedonia, Kosovo, Bosnia and Herzegovina) – all of which have been growing strongly in terms of market activities and profitability, NLB said in a 2016 financial report late on Friday.
The Group core bank subsidiaries collectively contributed 57.7 million euro to the consolidated profit, representing an increase of almost 51%.
"This is the result of strong loan production especially in Serbia, Macedonia and Kosovo, as well as exceptionally low risk results in all entities. All entities have been showing a positive dynamics in business evolution – operating in markets that also show a higher GDP and loan growth compared to the Eurozone, as well as still substantially higher margins", NLB noted.
Consolidated net interest income in 2016 totalled 317.3 million euro, representing a drop of 7% on the year, while net fees and commission income fell slightly to 145.7 million euro from 147.1 million euro. Impairments and provisions totalled 60.6 million euro through December, down 27% on the year.
The volume of non-performing loans dropped 31% to a level of just below 1.3 billion euro, while their share reduced to 13.8% from 19.3% in 2015.
"This strong performance on NPL reduction was possible due to strong results in collection and continued divestment of exposures at asset and portfolio level", NLB explained.
The bank's total assets stood at 12.04 billion euro at end-December, up 2% on the year.
NLB is facing the process of privatisation, with the PM having announced earlier this year that the government aims to sell a 75% stake in the bank by way of an initial public offering (IPO) by December.
The chairman of NLB's supervisory board, Primoz Karpe, said in the financial statement that the bank is prepared for a change in ownership.
"NLB is ready for the process of privatisation and will act in accordance with decisions and instructions by the owner", he noted.
NLB has been 100% state-owned since 2013, when the Slovenian government had to step in and recapitalise it and two other lenders - NKBM and Abanka, narrowly avoiding an international bailout.
($=0.94122 euro)