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NLB Posts EUR 2.7M Q1 Loss, Secures EUR 440M Loan

Ljubljana, 12 May (STA) - The group around Slovenia's largest bank, NLB, reported an after-tax loss of EUR 2.7m for the first quarter of this year on Wednesday. The majority state-owned bank, which also announced a new EUR 440m loan, pointed to writedowns and bad loans provisions to the tune of EUR 70.3m as the main reason for the negative result.

NLB said in a press release that without the provisions it would have recorded a profit of EUR 66.8m, an increase of around 30% over the same period last year.

The bank's total assets increased from 19.04bn in the first quarter of 2009 to EUR 19.31bn.

Total deposits of the non-banking sector section were down 334.5m to EUR 10.4bn in the first three months, although household deposits increased by EUR 59.5m.

Crediting of the non-banking sector increased by EUR 62.2m to EUR 12.4bn, mostly due to an expansion of loans to businesses, the bank said.

The group's core bank recorded a EUR 4.5m loss in the first quarters, with writedowns and provisions for bad loans standing at EUR 44.6m.

Meanwhile, NLB said it signed today a contract with 11 foreign banks on a three-year loan worth EUR 440m.

NLB plans to use the loan, which was obtained without a state guarantee, for refinancing and the financing of current operations.

Contributing EUR 40m each are Bayerische Landesbank, BNP Paribas, Commerzbank, Credit Agricole Corporate and Investment Bank, Erste Group, ING Bank, Intesa Sanpaolo together with Banka Koper, Lloyds TSB Bank, Raiffeisen Zentralbank Oesterreich together with Raiffeisenlandesbank Niederoesterreich Wien, UniCredit Bank Austria and Wells Fargo.

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