Slovenia's NLB turns to 9-mo cons after-tax profit

The group's performance was significantly affected by one-off effects barring which it would have posted a loss, NLB said in its unaudited third-quarter report.

Consolidated profit before provisions totalled 340.7 million euro through September, up by 151.9 million euro on the year, due to one-off positive effects arising from early redemption of subordinated instruments and terminated hedging of deposits of the Slovenian finance ministry. Nine-month profit before provisions excluding the one-off effects was lower, amounting to 150.9 million euro.

Due to further deterioration of the group's portfolio, in the third quarter impairments and provisions in the amount of 110.9 million euro were created with the bulk accounted for by impairments of the credit portfolio. The total volume of consolidated provisions and impairments in 2012 is 277.4 million euro.

In the third quarter of 2012, total consolidated assets contracted to 14.92 billion euro from 17.3 billion a year earlier.

As at September 30, the capital adequacy ratio of NLB Group was 11.7%, up 0.6 percentage points on the end of 2011. On the same day, the core Tier 1 ratio was 10.2%, up 3.9 percentage points on the end of 2011.

($=0.7729 euro)