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Slovenia's 'bad bank' reports 14% drop in 2018 net profit

Author Iskra Pavlova
Slovenia's 'bad bank' reports 14% drop in 2018 net profit Photo: TheSloveniaTimes

LJUBLJANA (Slovenia), July 18 (SeeNews) – Slovenia's ‘bad bank’, the Bank Assets Management Company (DUTB), said its net profit declined 14% to 57.7 million euro ($64.7 million) last year.

DUTB's loan portfolio decreased 23% to 73 million euro last year and its equity instruments portfolio almost halved to 5.8 million euro, the bank said in its 2018 annual financial report filed to the Ljubljana Stock Exchange  on Wednesday.

The inventories portfolio of DUTB comprising mainly real estate expanded 40% to 15.6 million euro.

"The result is comparable to the result of 2017, despite a considerably lower volume of liquidated assets than last year as all three portfolios retained their profit-generating momentum while financing costs were almost halved and operating costs were also notably reduced," the 'bad bank' noted.

Financial expenses decreased 47% to 11.8 million euro last year, while operating costs and other expenses fell 17% to 20.7 million euro.

DUTB's CEO Matej Pirc commented that the bank closed 2018 with "more than satisfactory results", helping the management to carry out its mission as DUTB nears its closing year 2022.

Pirc also said that in its fifth year of operation, in 2018, DUTB reached all key performance indicators set by its founder, the Slovenian government. In particular, the bank generated 228 million euro in inflows, corresponding to 11% of the transfer value of the assets, thus landing above the 10% statutory target.

($=0.891552 euro)