12.03.12

New NKBM Boss Announces Restructuring, Layoffs

Maribor, 12 March (STA) - Aleš Hauc, the new chief executive of NKBM

bank, said Monday that the bank and the group would have to be slimmed down

and consolidated, including with layoffs and the mergers of subsidiaries.

But he does not deem it necessary to recapitalise the bank at this

point.


 

$Group and core bank businesses will have to be

redefined...Non-performing businesses have to be offloaded,$ Hauc said

in his first statement for the media following his appointment last

week.

Hauc argued that NKBM needed a special unit for the ongoing

monitoring of customers, arguing that the majority of banks with a high

share of soured loans had not been prepared for the crisis and for the wave

of defaults by clients.

Credit risk cannot be lowered without active

engagement with the clients, he said. Moreover, he said, $the times

when companies came to the bank are over, now the bank needs to actively

market its services.$

Relations with investors and shareholders

will be more intensive in future, according to Hauc, who sees this as one

of the ways to improve the bank's reputation and shareholder

value.

However, he stressed that NKBM was still a $reputable,

safe and stable bank$. $It's got a good international reputation

which I'm sure it will improve further.$

Hauc, the boss of

postal operator Pošta Slovenije, was named CEO on Friday, three weeks

after Andrej Plos stepped down as chairman after just a month and a half on

the job.

His main task will be to return the bank to profitability

after it posted a group net loss of EUR 53.66m for 2011 due to high

provisions and impairments.