Page 22 - bne_Magazine_June_2017

22 I Companies & Markets bne June 2017
The rating agency said the action follows its review of the Slovenian banking sector and reflects the view of reduced economic risks and improved operating conditions for banks in the country.
“In our view, the planned partial privatisation of NLB within 2017-2018 via an initial public offering is likely to bolster the bank's business position in the long term, but we don't anticipate a material impact on the bank's profile in the next two years,” S&P commented.
However, even though the government is obliged to sell off NLB, the Slovenian public is still resistant. Many Slovenians are against the privatisation of state property and have opposed major privatisations such as that of retailer Mercator in the past.
NLB is the largest banking and financial group in Slovenia with a 23.9% market share in loans to the non-banking sector and 25.3% in deposits from the non-banking sector as of December 31, 2016.
As of March 31, NLB in Slovenia had 113 branches, five business centres for small business clients, five regional centres for mid-sized companies and two centres for large and institutional clients. NLB served over 695,000 active clients across its retail and corporate banking operations in Slovenia.
The NLB Group is the largest banking and financial group in selected markets in Southeast Europe with a focus on its core international markets of Macedonia, Bosnia & Herzegovina, Montenegro, Kosovo and Serbia.
NLB Group has recorded more than three consecutive profitable years since the fourth quarter of 2013 (when NLB was nationalised) while achieving a balance sheet deleveraging. Net profit reached €81.6mn in Q1, up €29.4mn compared to Q1 2016, the group announced on May 12.
Total assets decreased by €400mn between December 31, 2013 and March 31, 2017. During the same period, its non- performing loan (NPL) stock fell by more than €1.5bn.
The bank’s strong emphasis on restructuring was demon- strated in 2016, when it reduced NPLs by 31% or €597mn. The company sold a portfolio comprised of Slovenian retail and corporate NPLs, with gross book values of €104mn
and €396mn respectively, to international investors, which resulted in a one-off reduction in NPLs of €233.3mn. 65.3% of its NPLs are currently being restructured.
S&P said on May 12 that it expects further reduction of the NPL stock, reflecting the economic recovery in Slovenia, intensive workout efforts, repayments, and active market for NPL sales.
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Bulgaria’s kingmaker parties to hold GERB
to ransom
bne IntelliNews
The centre-right Citizens for European Develop- ment of Bulgaria (GERB) might have won the snap parliamentary elections held on March 26, but the party is heading for tough negotiations with possible partners to gain a large enough majority to form a government, and will most likely be forced to make big compromises to stay in power.
Central Europe starts to tot up Brexit fallout
bne IntelliNews
Central European states expressed regret that the UK is leaving the EU as London triggered the Ar- ticle 50 withdrawal clause on March 29. They also quickly moved to start totting up the direct costs.
The economic effects of Brexit on Central Eu- rope are hard to pinpoint given the wide range of
Two smaller groups in the parliament – the na- tionalist United Patriots coalition and the populist Volya (Will) party – have already said they will pre- sent a united front in talks with GERB. They have also indicated they are willing to work with the Bulgarian Socialist Party (BSP), the runner-up in
See page 2
TmhaejoVrispeogwreardsr.egion will be hard hit by the loss of their closest ally amongst the bloc's
potential scenarios under which the UK will exit. However, most suggest the damage will be limited by modest direct trade ties.
In political terms, the Visegrad region will be
See page 3
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