Business news

NLB bank's net profit jumps on Komercijalna Banka acquisition

Ljubljana, 18 February (STA) - NLB, Slovenia's largest bank, posted a group net profit of EUR 269 million for 2020, more than a third higher then the year before, largely due to the effects of the acquisition of Serbian bank Komercijalna Banka, according to a preliminary earnings release published on Thursday.

Without the one-off effect, net profit would have stood at EUR 141.3 million, a drop of nearly 37% on the year before. But this still "exceeds previous forecasts, mostly because of better than expected cost-of-risk performance," the bank said.

Total group net operating income stood at EUR 504.5 million, down 2% year-on-year. Profit before impairments and provisions amounted to EUR 210.5 million, a 1% decrease.

In total, the NLB group established impairments and provisions of EUR 71.4 million, mostly related to the COVID-19 outbreak.

Costs were down by 4% to EUR 293.9 million.

Capital adequacy stands at 16.6%, with EUR 92.2 million from 2020 profits already anticipated for dividend distribution.

The acquisition of Komercijalna Banka at the end of last year added EUR 4.3 billion to the group's balance sheet, bringing group total assets to EUR 19.6 billion.

Detailed results will be presented next week.