Ljubljana, 31 March (STA) - Financial group KD Group was hit hard by the financial crisis in 2009, making a loss of EUR 53m on extensive write-downs in eastern European markets. The loss is a eight-fold increase on 2008, the group said in announcing unaudited earnings on Wednesday.
The group was hit hard by impairments of its investments in Ukraine, Romania, Bulgaria and Serbia. It said it had started pulling out of all these markets last year.
According to the group, whose activities include banking, investment funds, portfolio management and insurance, eastern European markets were among the hardest hit by the financial crisis, with the financial sector bearing the brunt of the consequences.
The group's operating loss stood at EUR 6.8m, which is less than half that of 2008. However, financial expenditure stood at EUR 62.8m, exceeding revenues by EUR 54m. Of the total financial expenditure, EUR 54.8m was due to impairment of investments.
KD Group's subsidiaries in Slovenia operated in the black in 2009. With the help of a conservative investment policy adopted in 2009, the whole group expects to return to profitability this year.
According to the press release, current operations are in line with plans. Moreover, all subsidiaries meet capital adequacy provisions.