Ljubljana, 24 May (STA) - The NLB banking group posted a EUR 57.7m net profit in the first quarter of 2018, down 29% compared to the same period in 2017, according to a report released on Thursday. The bank explained that the last year's first quarter result was significantly better due to a higher release of provisions.
In the first quarter of 2017, the NLB group released EUR 25.4m in impairments and provisions for credit risks, while the figure stood at EUR 3.5m this year.
Subsidiary banks in Bosnia-Herzegovina, Serbia, Montenegro, Kosovo and Macedonia contributed an important part of the group's result, almost 42% of the net profit, the report says.
The group's operating income was flat compared to the first quarter of 2017 at EUR 130.4m, while revenue from fees and commissions were up by 5% to EUR 39m.
The share of non-performing loans decreased from 12.7% in the first quarter of 2017 to 8.8%, while the non-performing exposure ratio was down to 6.2% from 9.3%.
The trends in the management of non-performing exposures are positive and the state-owned bank expects to reach the set goals, the report says.
A drop in profit before tax on foreign markets due to the release of impairments in the first quarter of 2017 was offset by one-off income from the sale of the Macedonia-based pension fund NLB Nov Penziski Fond for EUR 12.2m.