Slovenia's NLB bank has given up trying to get a EUR 400m capital increase, as the supervisory board on Wednesday amended the bank's 2010-2015 strategy to require a EUR 250m capital raising coupled with streamlining of operations, including the sale of Banka Celje. The capital increase, which will be put to shareholders at the 25 November general meeting, should be completed by the end of March next year, the supervisors of the majority state-owned bank said.
The strategy was amended in view of new international capital adequacy rules, called Basel III, demands for improvement of the bank's capital and altered macroeconomic environment, the press release reads.
The slimming-down will involve withdrawal from non-strategic markets such as Austria, Bulgaria, Czech Republic, Germany and Slovakia as well as disposal of non-core businesses including property leasing and factoring.
NLB also plans to gradually pull out of Italy and Serbia, the latter defined in the previous version of the strategy as a secondary market in Southeast Europe.
In Banka Celje, which has a 5% market share in Slovenia, NLB has 49.42% of voting rights and a 40.99% ownership stake that is being valued by financial media at EUR 82m.
Supervisory board chairman Marko Simoneti is quoted as saying that the bank will reduce exposure to individual groups of clients to 5%-15% of assets and improve the loans-to-deposits ratio to 108%.
News source: Sloveniantimes link: article
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