STA, 19 June 2019 - Abanka, Slovenia's third largest bank, said Wednesday it saw its net profit decline 27% in the first quarter of the year to EUR 18.6 million on plunging non-interest revenue and higher net write-downs and provisions.
Net interest revenue increased by 2% year-on-year to EUR 15.1 million, but non-interest revenue plunged over 40% in the same period to EUR 15.4 million.
Abanka says the decline of non-interest revenue is the result of the impact a sale of non-performing loans had on its balance sheet in 2018.
Net write-downs and provisions almost doubled to EUR 5.6 million. Nevertheless, the bank reduced non-performing loans by EUR 12.7 million.
The share of non-performing loans contracted by 0.7 percentage points to 3.7% from the end of last year according to European Banking Authority methodology.
The bank's total assets rose by 2% from the end of 2018, to EUR 3.8 billion, making for a market share measured by total assets of 9.6%, the bank said on Wednesday.
Abanka released the results just hours before Slovenian Sovereign Holding is due to decide on the buyer for the state's 100% stake in the bank.