Press release
Ljubljana, 14 February 2013
»Together we are achieving more«
SKB Group's financial results in 2012: EUR 3.7 million profit after tax
SKB Group, which consists of SKB Bank and SKB Leasing, concluded the business year
2012 with a profit after tax in the amount of EUR 3.7 million. Difficult general economic
situation in Slovenia and consequently high costs of risks, particularly in the corporate
segment, affected also the financial results of SKB Group. Despite lower demand in the
environment, SKB employees strived to meet customers’ needs with their professionalism,
personal approach and quality services also in 2012 and to contribute, in the existing
circumstances, to the optimal success of the financial year.
Successful financial results of SKB Group compared to 2011 were based on:
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stable and solid capital base entirely composed of the core Tier 1 capital with
a 13,4% capital adequacy coefficient,
growth of deposits from individual clients: +7.7% and increased market share
from 7.1% to 7.7%,
improvement of the loans to deposits ratio: from 156.2% in 2011 to
147.2% in 2012,
increase of non-interest income: +8.3%,
increase of SKB Leasing’s market share: from 7.7% to 8.5%,
reduction of operating costs by 4.1% despite a 2,6% average inflation.
SKB Group finished the business year 2012 with a profit after tax in the amount of EUR 3.7 million.
The results were influenced by poor overall economic situation in Slovenia and consequently by the
high cost of risk in particular. Namely, last year the entire economic activity in Slovenia decreased
in all fields whereas on the other hand the indebtedness level of companies and incapacity to repay
the debts increased and the purchasing power of individuals decreased. Consequently the interest
income of SKB Group decreased and the costs of risk significantly increased.
The gross operating income, i.e. the profit from business operations, excluding the costs of risk,
amounted to EUR 47.1 million, which means an 8.9% decrease compared to the previous year as
a consequence of the decrease of net banking income despite the successful reduction of
overhead expenses.
SKB Group generated net banking income in the amount of EUR 107,2 million what is 6,3% less
than last year since in 2012 the net interest decreased by 13,1% to EUR 67,7 million as a
consequence of SKB Group’s high interest sensitivity regarding the drop of EURIBOR which has
reached its lowest level ever.
In 2012, SKB Group has increased its non-interest income to EUR 39,5 million (+8,3%) what is
mainly the result of optimization of SKB Group’s capital investment portfolio.
SKB Group continued to successfully optimize overhead expenses also in the past year and
managed to reduce them by 4.1% whereby the success is even bigger by taking into account the
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2,6% average inflation in Slovenia in 2012. Due to careful management and saving measures the
administrative expenses were reduced (-13.6%), while labour costs increased by 1.8% as SKB
Group increased the employees’ salaries in 2012 in line with the Collective Agreement.
in 000 EUR
1-12 2012
67.701
Net interest
39.464
Non-interest income
107.165
Net banking income
-60.067
Total overhead expenses
47.098
Gross operating income
-41.866
Net cost of risk
-100
Other
5.132
Profit before tax
-1.436
Tax
3.696
Profit after tax
SKB Group
1-12 2011
Difference
77.920
-10.219
36.442
3.022
114.362
-7.197
-62.659
2.592
-4.605
51.703
-21.310
-20.556
0
-100
30.393
-25.261
-5.973
4.537
24.420
-20.724
Change
-13,1
8,3
-6,3
-4,1
-8,9
96,5
#DIV/0!
-83,1
-76,0
-84,9
Throughout the year, SKB has improved its liquidity level by searching new sources and by
increasing the collected deposits of customers not being the banks by 0,6%.
SKB banka has been particularly successful in collecting deposits of individuals, as it
increased its volume by EUR 82 million, which represents 7.7% more individual deposits than in
2011. On the other hand, in line with its lending policy, the bank has smoothly financed customers,
both individuals and companies, but loan repayments exceeded the new drawn facilities, so the
loans, to companies in particular, decreased by 5.2%.
The bank has consequently improved coverage of credit basis with deposit sources, since the
loans to deposits ratio decreased from 156.2% in 2011 to 147.2% in 2012.
SKB maintained a high, even an exceeded liquidity level throughout the year which constantly
provided an adequate base for crediting the customers. Besides that, SKB maintained a solid
capital base being entirely composed of the core Tier 1 capital. In 2012 the capital adequacy ratio
amounted to 13,4%, 20 basic points more than at the end of 2011.
SKB client relationship officers pay special attention to each particular client; therefore new tailormade services for different customer segments were created also in 2012.
SKB ISIC VISA debit card for students, that combines all the advantages of VISA debit card and
ISIC international student card, was issued in cooperation with the student travel agency STA and
is the first kind of such partnership card on the Slovenian market. In the context of the European
Year of Solidarity among generations, SKB participated in the Slovene project Simbioz@, whose
aim is to facilitate the first experience with modern computer technology for older people and on
this occasion SKB designed an attractive offer for pensioners, consisting of a combination of
banking and insurance products. Another offer a »Quick« housing loan was prepared for the
purpose of reconstruction works in the amount of EUR 20,000 with maturity of 10 years. In
cooperation with Generali insurance company the offer Saving with double effect was formed as
combination of saving and banking insurance product, as it combines long-term saving (Savings
account double plus and Term deposit double plus) and life insurance Generali GaranT. Private
banking services with high professional consulting and quality products were provided to the
affluent clients in the privacy of the bank’s new Outlet in Ljubljana.
SKB Leasing terminated the year 2012 with a net profit of EUR 3.3 million and even exceeded the
2011 business result despite the 20% fall of production on the Slovenian leasing market and
numerous negative trends in the macroeconomic environment. The company managed to
compensate the reduced volume of operations in the segment of personal cars where the sale of
new cars in Slovenia was statistically lower by 17% and in reality even more, that fall by
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increasing financing in the segment of commercial vehicles, agricultural machinery and
industrial equipment. Together with BPF Financing, for which SKB Leasing performs business
support in financing Peugeot and Citroen cars, SKB Leasing further strengthened its leading role
on the Slovenian leasing market with almost 27% market share.
According to the opinion of independent foreign banking experts of The Banker, specialized
magazine for the bankers all over the world, SKB succeeded in winning the title
"Bank of the Year 2012 in Slovenia" for the second consecutive year, although the year 2012
was marked by many challenges and difficult tests. This is recognition to all employees,
management team and owners for their achievements in 2012.
Gérald Lacaze, SKB’s CEO comment about the business year 2012: "In a challenging economic
situation in Slovenia we have confirmed the successful performance of our business strategy,
which is based also on the experience of the 149-year existence of Société Générale. Last year,
SKB managed to stabilize the costs and to maintain a successful risk management policy, what
places SKB side by side of the most secure, stable and strong banks in the Slovenian banking
system. Although at the reduced operational costs and prompt reaction to the difficult market
conditions in the Slovenian economy, the results achieved in 2012 are optimal, it was already in
2012 that we started numerous activities like restructuring and optimization of operations together
with activities for the growth of the volume of operations and increase of income. Last year, SKB
introduced a new slogan "Together we are achieving more", meaning that our business
operations put forward the importance of good relations among the employees and with our
customers. Mutual understanding and trust, searching for optimal solutions together with our
customers, in good and in bad times, and to the mutual satisfaction, remains our guiding principle
in business operations this year as well."
Additional information: Jelka Novak Katona, Public Relation Advisor, Head of Corporate Communication, SKB d. d., phone: (01)
471 59 79, e-mail address: [email protected].
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