Business News

SKB Group profit up 40% in H1

Ljubljana, 05 August (STA) - The banking group SKB Group generated EUR 34.2 million in net profit in the first half of 2019, which is 40% more than in the same period last year. This is due to good operating results and easing of provisions and impairments, the group said on Monday.

The group, comprising the bank and leasing arms SKB Leasing and SKB Leasing Select, saw its operating profit rise by 18% to EUR 31.3 million.

Net profit from the banking business went up by almost 9% to EUR 60.6 million, partly on account of a one-off capital investment valuation.

The group, which the French group Societe Generale is in the process of selling to the Hungarian OTP Bank Group, managed to keep operating costs level.

In the January-June period, costs accounted for 48.3% of total revenue, down from 52.4% in the same period last year, SKB said on the web site of the Ljubljana Stock Exchange.

In year-on-year comparison, the group released 257% more provisions and impairments.

SKB Bank kept a 10% market share in the segment of loans. For housing loans, its market share rose by 10 basis points to 14% in the first six months of the year, while reaching 8.7% for deposits.

The total volume of capital lease of the group SKB Leasing reached EUR 488.2 million in the first half of the year, which is 1.3% more than at the end of last year.

Societe Generale announced the sale of the bank and its subsidiaries to OTP in May and according to deputy CEO Milan Žiaran, the sales procedure should be closed by the end of the year.

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