February 21 (SeeNews) - Slovenian banking group NLB, the parent company of Nova Ljubljanska Banka [LJE:NLBR], said that its consolidated after-tax profit fell 10% year-on-year to 203.6 million euro ($231 million) in 2018.
NLB Group's net operating income edged up 1% to 493.3 million euro last year, NLB Group said in its 2018 preliminary unaudited financial report on Wednesday.
Net interest income rose 1% to 312.9 million euro due to loan volume growth – predominantly in retail - and lower interest expenses.
Net non-interest income also increased by 1% - to 180.4 million euro, due to higher fees and commissions.
The company's costs fell by 1% to 288.7 million euro in 2018.
Impairments and provisions fell to 23.3 million euro in the review period, from 29.5 million euro in 2017.
The share of non-performing loans in all loans fell to 6.9% at the end of 2018, from 9.2% a year earlier.
The group's assets totalled 12.74 billion euro at the end of December, up from 12.24 billion euro a year earlier.
In Southeast Europe, the group is active in Bosnia and Herzegovina, Macedonia, Kosovo, Serbia and Montenegro.
In November, Slovenia sold 59.1% of NLB's issued share capital in an initial public offering (IPO) on the Ljubljana Stock Exchange, priced at 51.50 euro per share as part of the privatisation of the bank agreed between the government and the European Commission.
The IPO came in response to the commitment of Slovenia undertaken as part of the restructuring plan of NLB agreed with the European Commission under state aid procedure in 2013. Back then, the Slovenian government stepped in to recapitalise NLB and two other lenders - NKBM and Abanka, narrowly avoiding an international bailout. The same year, Slovenia committed to the European Commission to sell part of NLB within four years.
($ = 0.88133 euro)
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