The supervisors moreover discussed the bank's results for the first quarter. The figures are to be release by the end of the week but first information suggest that NKBM generated EUR 6m in profit before provisions and impairments.
Given that reservations and impairments exceeded EUR 12m, the bank generated a loss of around EUR 6m.
NKBM said in a press release after the meeting that the first step in cleaning up its balance sheet would be transferring non-performing loans to companies undergoing receivership onto the bad bank.
The bank believes it will be able to provide better support and servicing of existing and future profitable projects after the non-performing loans are taken off its hands.
Moreover, the press release said that NKBM had already implemented a number of measures to improve client monitoring and risk management activities.
In total, more than 100 measures are being implemented on all levels in order to bring down costs and boost income. The bank expects to make the biggest savings with changes in operation processes and organisation, as well as labour cost, purchasing and by finding synergies.
The measures are expected to cut cost by EUR 8.5m annually as of 2015 at the core company and an additional EUR 1.7m in other subsidiaries of the NKBM group.
In July, the bank will start closing some of its branches, streamlining administration and reducing the number of employees - mostly through attrition. By the end of the year, NKBM expects to decrease the number of employees by 100.
The supervisors were also briefed on preparations for a shareholders' meeting called for 10 June to discuss recapitalisation. According to the press release, preparations for the shareholders' meeting were going as planned.
Source: SloveniaTimes
