In 2019, Nova KBM pursued its business strategy firmly and with focus, which is reflected in good business results and numerous achievements in all strategic areas. It is our goal to maintain a strong local presence and accessibility in all the regions, with an aim to become a market leader in Slovenia both through acquisitions and the organic growth.
The most important act among numerous achievements in the past year was the acquisition of Abanka, d.d., which was closed on 5 February 2020, after obtaining all regulatory licences. Consequently, Nova KBM acquired 100 % of Abanka's shares, and the later became a member of the Nova KBM Group at the same day.
In September 2019, we successfully, and in a very short period of time, implemented the new core banking information system (CBS). At the same time, we renewed our online and mobile bank.
Digitalisation remains the future and the priority development area in Nova KBM. Therefore, also in 2019, we were focused on simplifying procedures, improving response times and the operational efficiency, which resulted in further improvement of our services and relationships with the clients.
With its more than 800 outlets (including branches offices, post offices, specialised banking offices and ATMs), Nova KBM remains to be the most accessible bank in the country.
As a socially responsible institution and in pursuing its business objectives, the Bank took part in important national, regional and local events, projects and initiatives in 2019, thus contributing to the development of the societal and economic environment in which it operates. We will continue this practice also in 2020.
In 2019, Nova KBM further reduced its portfolio of non-performing loans, while strengthening high standards of corporate governance, compliance, and risk management.
In 2019, the profit amounted to €67.4 million.
Sustainable profitability is one of the Nova KBM's important business and socially responsible goals, which enables investing in the Bank's further development, while providing adequate reserves for adjusting to future changes or shocks arising in the financial and economic environment.
Nova KBM closed the year 2019 with a net profit of €67.40 million, while the Nova KBM Group generated a profit of €62.49 million.
The achieved return on equity after taxation at the end of 2019 was 8.1 % at the Group level and 8.8 % at the Bank level.
The total capital adequacy ratio remains high, namely 27.0 % and 26.2 % for the Group and the Bank, respectively. The Bank finished the year with a strong capital and liquidity position.
The balance sheet total increased to €5.11 billion.
In 2019, the share of non-performing loans in the Bank’s portfolio decreased by 1.8 percentage points and in the Group’s portfolio by 2.0 percentage points, demonstrating a positive trend in decreasing the amount of non-performing exposures, as well as in increasing the repayments and restructured receivables.
Operations of Nova KBM have been successfully adapted to new or amended regulatory rules, both at national and international level. The Bank's progress and improved performance are further confirmed by improved credit ratings. In middle of 2019, the Bank’s rating assigned to it by the Moody's Investors Service and by the Fitch Ratings was improved to Baa2 and BB+, respectively, with positive outlook in both cases.
Nova KBM maintains its efforts for social responsibility and sustainable development that are incorporated in all its levels of operations.
John Denhof, President of the Nova KBM Management Board: „We are proud of our achievements and experience in the past and open to new opportunities and challenges in 2020, which will be a breakthrough year in many areas of the Bank’s operations. We will keep our focus on client excellence, growth and profitability, the development of organisational culture and employees, effective risk management and compliance, and operational efficiency.“
Andrej Fatur, Chair of the Nova KBM Supervisory Board: „Nova KBM successfully pursued its business strategy also in the past year. In the current year, we are focused on numerous ambitious plans, with the main one being the integration of the two banks into a single, strong bank. Employees will remain to be in the heart of Nova KBM's operations and efforts, along with its clients that will be provided with the most accessible and convenient banking network, and the best products and services in all segments of banking operations.“
2019 Annual Report of Nova KBM Group and Nova KBM is accessible at: https://www.nkbm.si/financial-reports-and-documents
