SUMMARY OF THE UNAUDITED SEMI-ANNUAL REPORT OF THE NLB GROUP AND NLB. for 2005

Transcription

1 SUMMARY OF THE UNAUDITED SEMI-ANNUAL REPORT OF THE NLB GROUP AND NLB for 2005

2 SUMMARY OF THE UNAUDITED SEMI-ANNUAL REPORT OF THE NLB GROUP AND NLB FOR 2005 In accordance with the Rules of Ljubljanska borza vrednostnih papirjev d.d. (the Ljubljana Stock Exchange) and the Securities Market Act (ZTVP 1, Official Gazette of the RS, no. 56/99), Nova Ljubljanska banka d.d., Ljubljana (hereinafter: NLB) hereby publishes the Summary of the Semi- Annual Report prepared on the basis of the unaudited semi-annual financial statements as at 30 June 2005 / for the period between January June The financial statements have been compiled in line with the Slovenian Accounting Standards (hereinafter: the SAS) and the Bank of Slovenia s regulations. The unabridged report of NLB and the NLB Group is available for inspection at the Bank s registered office every working day between 8 a.m. and 2 p.m. Consolidated financial statements include the following companies Banks and companies included by the method of complete consolidation: - Banks in Slovenia: Nova Ljubljanska banka d.d., Ljubljana, Banka Zasavje d.d., Trbovlje, Koroška banka d.d., Slovenj Gradec, Group of Banka Domžale d.d., Domžale; - Banks abroad: CBS Bank d.d., Sarajevo, Montenegrobanka a.d., Podgorica, Group of LHB Internationale Handelsbank AG, Frankfurt, Group of Tutunska banka a.d., Skopje; - Financial institutions and companies in Slovenia: FIT Leasing d.o.o., Velenje, LB Maksima d.o.o., Ljubljana, Group of NLB Propria d.o.o., Ljubljana, NLB Skladi d.o.o., Ljubljana, Prospera Plus d.o.o., Ljubljana, Group of LB Leasing d.o.o., Ljubljana, LB Leasing d.o.o., Maribor, LB Leasing d.o.o., Koper - Financial institutions and companies abroad: CBS Invest d.o.o., Sarajevo, Group of NLB Factoring a.s. Ostrava, Group of LB InterFinanz AG, Zurich, Novi Penzijski Fond a.d., Skopje Banks and companies included by the equity method: - Banks in Slovenia: Banka Celje d.d., Celje - Banks abroad: Adria Bank AG, Vienna, West East bank a.d., Sofia - Financial institutions and companies: Bankart d.o.o., Ljubljana, Skupna pokojninska družba d.d., Ljubljana, ICJ d.o.o., Domžale, VB Inter Invest a.d., Banja Luka, Krajinapromet a.d., Banja Luka, NLB Vita d.d., Ljubljana, Group of Prvi Faktor d.o.o., Ljubljana. Financial operations of the NLB Group and NLB in the first half of 2005 in line with the SAS Profit before tax of the NLB Group in the first six months equalled SIT 10.9 billion, based on unaudited financial statements, which is a 23% increase compared to the end of June Total assets of the NLB Group increased by 17% reaching SIT 2,610 billion at the end of June Profit before tax of NLB in the first six months equalled SIT 8.35 billion, based on unaudited financial statements, which is a 26% increase compared to the same period in 2004 exceeding the plan by 4%. Volume of operations rose by 9.4% with regard to the end of 2004, thus total assets exceeded SIT 2,036.1 billion at the end of June Net interest income and non-interest income of the Bank in the first six months equalled SIT 19.5 billion and SIT 17.7 billion, respectively. The increase in interest-bearing assets by 10% offset the lower interest margin, which resulted in 8% increase of net interest income compared to the same period in Positive impacts of effective cost management were reflected in 1.1% reduction of operating costs, which totalled SIT 18,5 billion, compared to the same period in

3 The key reason for 15% increase of NLB's total assets, to SIT 2,040.5 billion compared to the end of June 2004, was an increase in credit activities. Loans to non-banking sector rose by 20% compared to the same period in 2004, above the planned level. The biggest increase with regard to the plan was in loans to corporate clients. Borrowings and deposits from non-bank customers amounted to SIT 1,162.8 billion. There were no significant events in the period from the balancing date until the completion of this report that would considerably affect the produced unaudited semi-annual financial statements. Capital, ownership structure and shares As at 30 June 2005 total assets and the for risk management of NLB amounted to SIT billion and SIT billion, respectively. The adequacy ratio of NLB equalled 10.3%. The share book value rose by 3.8% to SIT 16,116 and was calculated as the value of total divided by the number of shares at the end of the first six months, namely 7,682,015 ordinary shares. The Bank s nominal totalled SIT 15,364,030 with the nominal value of SIT 2,000 per share. The major ten shareholders of the total of 911 Bank s shareholders owned % of all shares. NLB s ten biggest shareholders as at 30 June 2005: Name No. of shares % 1 REPUBLIC OF SLOVENIA 2,720, KBC BANK NV 2,611, SLOVENSKA ODŠKODNINSKA DRUŽBA D.D. 388, KAPITALSKA DRUŽBA D.D. 384, EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT 384, POTEZA NALOŽBE D.O.O. 262, NFD 1 DELNIŠKI INVESTICIJSKI SKLAD D.D. 128, ZAVAROVALNICA TRIGLAV assets covering life insurance 107, VS TRIGLAV STEBER I 93, AKTIVA NALOŽBE D.D. 60, TOTAL 7,140, As at 30 June 2005 the Management Board and the Supervisory Board held % of all shares of NLB. Zvone Ivanušič, Member of the Supervisory Board, and Marjan Kramar, President of the Management Board, held 100 shares each. Net earnings per share rose from SIT on 30 June 2004 to SIT and were calculated as the ratio between net profit and the number of ordinary shares as at 30 June The Bank's General Meeting of Shareholders on 29 June 2005 adopted the proposal for dividend payout equalling SIT per share. In the first half of 2004 the Bank did not trade in own shares nor did it sign any agreements with the third persons for buying or selling the NLB s shares for the account of the bank. As at 30 June 2005, subsidiaries LB Trading d.o.o., Ljubljana, LB Propria d.o.o., Ljubljana and Koroška banka d.d., Slovenj Gradec owned shares of NLB in the total amount of SIT million for which the Bank established reserves for own shares back in

4 PROFIT & LOSS ACCOUNT The NLB Group NLB in 000 of SIT Interest revenue and similar revenues 57,208,367 57,986,628 40,055,871 42,935,753 Interest expenses and similar expenses 26,289,083 29,621,416 20,578,111 24,933,970 Net interest and similar revenues 30,919,284 28,365,212 19,477,760 18,001,783 Revenues from investments 3,903,746 3,487,229 5,306,786 4,735,647 Received fees and commissions 19,501,723 17,317,351 13,951,653 12,700,028 Paid fees and commissions 3,206,448 2,808,518 2,716,161 2,372,811 Net fees and commissions 16,295,275 14,508,833 11,235,492 10,327,217 Revenues from financial transactions 29,879,470 31,949,790 23,910,247 26,686,990 Financial expenses 27,714,874 27,570,366 23,704,191 23,797,343 Net loss/profit from financial transactions 2,164,596 4,379, ,056 2,889,647 Other operating revenues 4,547,953 4,507,092 1,508,211 1,362,825 Labour costs 18,349,333 17,522,210 12,265,665 12,391,039 Cost of material and services 9,645,347 9,176,200 6,197,786 6,271,116 Depreciation and operating expenses for intangible long-term assets and tangible fixed assets 4,999,417 4,776,834 3,380,640 3,371,595 Other operating expenses 2,667,237 2,872, , ,583 Losses on loans and receivables less recovered amounts 10,968,541 10,706,716 6,966,376 6,909,274 Net amount of provisions for general banking risks 351,679 1,350,000 0 (1,250,000) NET PROFIT FROM ORDINARY ACTIVITIES 10,849,300 8,843,499 8,306,425 6,611,512 Extraordinary revenues 68,415 89,261 40,049 38,335 Extraordinary expenses 14,826 21, ,335 - Extraordinary expenses less expenses for 14,826 21, ,335 - Extraordinary expenses for Profit/loss from extraordinary activities 53,589 68,218 39,543 35,000 PROFIT FOR THE FINANCIAL YEAR 10,902,889 8,911,717 8,345,968 6,646,512 Corporation taxes 4,613,249 3,506,040 2,888,384 2,299,958 Other taxes not disclosed under other items - 1,047, ,696 Profit attributable to minority shareholders 716, , NET PROFIT FOR THE FINANCIAL YEAR 5,573,249 3,600,240 5,457,584 3,360,858 3

5 BALANCE SHEET The NLB Group NLB in 000 of SIT Cash on hand and on the accounts held with the central bank 63,185,400 69,507,044 34,965,603 50,795,828 Loans to banks 226,091, ,286, ,899, ,611,264 Loans to clients other than banks 1,413,533,657 1,148,457,227 1,023,276, ,849,172 Debt securities not intended for trading 631,068, ,943, ,864, ,770,750 Securities intended for trading 129,200, ,707, ,679, ,670,592 Investments in associates, subsidiaries and joint ventures 14,572,751 10,021,897 57,989,617 49,029,855 Long-term investments in of other clients 2,210,689 2,473, , ,524 Intangible long-term assets 22,629,813 19,154,670 18,953,399 15,680,514 Tangible fixed assets 62,508,592 60,856,344 35,469,027 36,613,798 Own shares Other assets 31,068,252 31,939,384 23,089,782 22,642,303 Deferred costs (expenses) and accrued revenues 13,434,424 18,593,968 9,675,328 15,079,814 TOTAL ASSETS 2,609,995,593 2,226,432,323 2,040,480,282 1,772,506,414 Liabilities to banks 694,730, ,179, ,591, ,793,205 Liabilities to clients other than banks 1,498,912,443 1,392,215,076 1,162,831,299 1,132,081,500 Debt securities 93,811,324 79,402,477 98,972,373 79,208,445 Other debts 23,757,950 18,152,769 19,032,406 13,333,765 Accrued costs (expenses) and deferred revenues 15,766,672 19,414,101 12,950,589 15,665,482 Long-term provisions for liabilities and expenses 59,644,670 51,407,480 42,143,587 36,908,430 Provisions for general banking risks 9,952,526 8,998,712 5,989,370 5,089,370 Subordinated liabilities 72,553,587 56,451,456 73,166,360 55,098,770 Minority interests 20,744,170 21,203, Subscribed 15,364,030 15,364,030 15,364,030 15,364,030 Capital reserves 13,859,952 13,859,929 13,603,399 13,603,376 Profit reserves 66,596,320 62,338,490 71,502,101 66,824,309 Capital s 11,981,605 11,978,896 17,876,012 17,428,160 - general s 11,791,771 11,791,771 11,791,560 11,791,560 - specific s 189, ,125 6,084,452 5,636,600 Consolidated 304 6, Net profit brought forward 6,746,889 6,859,281 5,457,584 6,107,535 Net profit for the financial year 5,572,945 3,600,240 5,457,584 6,107,535 TOTAL LIABILITIES 2,609,995,593 2,226,432,323 2,040,480,282 1,772,506,414 Off balance sheet items 1,067,853,081 1,093,401,572 1,025,285,972 1,035,546,598 4

6 CASH FLOW STATEMENT in '000 of SIT The NLB Group NLB CASH FLOWS FROM OPERATING ACTIVITIES from 1 January to 30 June 2005 from 1 January to 30 June 2004 from 1 January from 1 January to 30 June 2005 to 30 June 2004 Inflows from operating activities 84,756,671 78,376,328 61,733,779 58,220,072 Received interest and similar revenues 58,983,310 49,942,589 42,217,746 36,859,115 Received fees and commissions 19,387,619 17,628,080 13,902,915 12,676,806 Revenues from collected written-off receivables arising from granted loans 338, , , ,094 Revenues from investments 3,401,324 3,182,220 4,087,897 3,464,053 Net profit from financial transactions 217,193 4,647,510 (80,899) 3,451,407 Other operating revenues 2,429,080 2,530,758 1,439,159 1,413,597 Outflows from operating activities (62,852,224) (66,799,980) (45,754,176) (48,986,578) Paid interest and similar expenses (24,409,565) (31,088,038) (18,939,854) (24,652,202) Paid fees and commissions (3,063,554) (2,820,353) (2,557,102) (2,379,194) Payroll expenses (18,478,098) (17,616,870) (11,798,870) (12,777,355) Expenses for material and services (10,559,785) (11,966,906) (7,626,043) (6,990,227) Other operating expenses (1,255,135) (622,961) (655,186) (349,488) Corporation taxes (5,086,087) (2,684,852) (4,177,121) (1,838,112) Total operating revenues before changes in operating assets and liabilities 21,904,447 11,576,348 15,979,603 9,233,494 (Increase) decrease in operating assets (165,142,146) (146,051,891) (99,254,896) (99,453,117) Net (increase) / decrease in loans to banks (19,067,264) (24,892,162) 9,846,069 (21,636,241) Net increase in loans to other clients (158,322,337) (110,407,584) (116,631,892) (68,000,660) Net decrease in value of securities intended for trading 215,730 (5,244,304) 215,730 (5,244,304) Net decrease/(increase) in other operating assets 12,031,725 (5,507,841) 7,315,197 (4,571,912) Increase/(decrease) in operating liabilities 50,618,283 25,876,575 24,029,334 42,551,184 Net increase in bank deposits from banks 42,063,680 7,987,307 46,615,238 38,598,621 Net increase in bank deposits from clients other than banks 8,382,496 18,959,428 (21,999,742) 4,398,620 Net (decrease)/increase in other operating liabilities 172,107 (1,070,160) (586,162) (446,057) Net inflows / (outflows) from operating activities (92,619,416) (108,598,968) (59,245,959) (47,668,439) CASH FLOWS FROM INVESTMENT ACTIVITIES Inflows from investment activities 133,939, ,048, ,687, ,816,835 Inflows from sales of debt securities 133,423, ,683, ,663, ,464,093 Inflows from sales of investments - 304, ,717 Inflows from sales of tangible fixed assets and intangible long-term assets 515,959 60,544 23,376 48,025 Outflows from investment activities (118,798,672) (138,399,884) (81,608,450) (72,236,851) Inflows from purchase of debt securities (106,617,834) (131,779,536) Outflows from purchase of investments (6,234,741) (1,984,933) (71,731,876) (66,376,392) Outflows from purchase of tangible fixed assets and intangible long-term assets (5,946,097) (4,635,415) (6,498,734) (2,183,367) Net inflows / (outflows) from investing activities 15,141, ,649,109 28,078, ,579,984 CASH FLOWS FROM FINANCING ACTIVITIES Inflows from financing activities 524,745, ,029, ,905, ,753,099 Loans received 483,892, ,352, ,631, ,558,385 Increase in debt securities and subordinated liabilities 40,853,595 68,677,874 46,273,595 69,194,714 Inflows from sales of own shares Outflows from financing activities (360,766,578) (525,055,334) (247,446,105) (442,690,509) Dividends paid by the Bank (581,015) (465,647) 0 (16) Repaid loans (316,989,964) (425,890,208) (204,603,406) (343,991,014) 5

7 Decrease in value of debt securities and subordinated liabilities (43,195,599) (98,699,479) (42,842,699) (98,699,479) Net inflows/(outflows) from financing activities 163,979,345 30,974, ,459,114 (8,937,410) Effects of changes in exchange rates on cash assets and their equivalents 4,413,957 3,979,501 3,417,764 3,488,010 CLOSING CASH BALANCE 625,623, ,456, ,394, ,903,603 Net increase/decrease in cash for the period 90,915,077 48,004, ,709,505 76,462,145 Increase of cash assets resulting from acquisition of subsidiaries 3,476,536 3,476, Opening cash balance 531,231, ,452, ,684, ,441,458 6

8 General Special CAPITAL FLOW STATEMENT OF NLB d.d. Subscribed Retained net Net profit for in '000 of SIT Capital reserves Profit reserves Treasury stock profit/loss the period Total OPENING BALANCE IN THE ACCOUNTING PERIOD (1 January 2005) 15,364,030 13,603,399 70,323, , ,791,560 6,084,180 3,440, ,097,564 Transfers to ,336 5,457,584 6,021,920 Subscribed (or paid) new 0 General 0 Specific s 564, ,336 Net profit/loss for the year 5,457,584 5,457,584 Covering of loss from previous periods by part of 0 Other increases 0 Transfers within , ,074 0 Allocation of net profit to profit reserves 688, ,074 0 Covering of loss from previous periods by part of profit for the financial year 0 Covering of loss from previous periods and the financial year 0 by profit reserves or other elements 0 Allocation of elements to special treasury stock 0 Dissolution of treasury stock by returning shares to original elements 0 Merging of elements except for legal reserves and general 0 into newly defined share 0 Dividend payout in shares 0 Other transfers within 0 Transfers from ,064-2,752,294-3,316,358 Dividend payout -2,752,294-2,752,294 Capital repayment 0 Decrease in specific s owing to impairment of assets 0 Transfer of specific s to operating revenues 0 Transfer of specific s to financial revenues -564, ,064 Other decreases in 0 CLOSING BALANCE IN THE ACCOUNTING PERIOD (30 June 2005) 15,364,030 13,603,399 71,011, , ,791,560 6,084,452 5,457, ,803,126 7

9 CONSOLIDATED CAPITAL FLOW STATEMENT in 000 of SIT Subscribed Capital reserves Profit reserves Treasury stock Retained net profit/loss General Special Net profit for the period Total Capital conversion s OPENING BALANCE IN THE ACCOUNTING PERIOD (1 January 2005) 15,364,030 13,859,952 65,994, ,825 2,284,543 11,791, ,834 7,198,852117,173, ,133 Transfers to 0 0 9, , ,573,249 5,830, ,041 Subscribed (or paid) new 0 General 0 Specific s 0 Net profit/loss for the year 5,573,249 5,573,249 Covering of loss from previous periods by part of 0 Other increases 9,877 18,054 27,931 Increase in currency conversion differentials 229, , ,041 Transfers within , ,215, ,316, Allocation of net profit to profit reserves 0 Covering of loss from previous periods by part of profit for the financial year 0 Covering of loss from previous periods and the financial year by profit reserves or other elements 0 Allocation of elements to special treasury stock 0 Dissolution of treasury stock by returning shares to original elements 0 Merging of elements except for legal reserves and general into newly defined share 0 Dividend payout in shares 0 Other transfers within 101,588 4,215,251-4,316,839 0 Transfers from ,882,013-2,882,013 0 Dividend payout -2,740,397-2,740,397 Capital repayment 0 Decrease in specific s owing to impairment of assets 0 Transfer of specific s to operating revenues 0 Transfer of specific s to financial revenues 0 Other decreases in -141, ,616 Decrease in currency conversion differentials 0 0 CLOSING BALANCE IN THE ACCOUNTING PERIOD (30 June 2005) 15,364,030 13,859,952 66,105, ,825 6,746,889 11,791, ,834 5,573,249120,122, ,174 8

10 CAPITAL FLOW STATEMENT OF NLB d.d. in '000 of SIT Subscribed Capital reserves Profit reserves Treasury stock Retained net profit/loss General Special Net profit for the period Total OPENING BALANCE IN THE ACCOUNTING PERIOD (1 January 2004) 15,364,030 13,603,376 66,333, , ,791,560 5,564,235 2,746, ,894,224 Transfers to ,261 3,360,858 3,946,119 Subscribed (or paid) new 0 General 0 Specific s 585, ,261 Net profit/loss for the year 3,360,858 3,360,858 Covering of loss from previous periods by part of 0 Other increases 0 Transfers within Allocation of net profit to profit reserves 0 Covering of loss from previous periods by part of profit for the financial year 0 Covering of loss from previous periods and from the financial year by profit reserves or other elements 0 Allocation of elements to special treasury stock 0 Dissolution of treasury stock by returning shares to original elements 0 Integration of elements except statutory reserves and general s in a newly defined share 0 Dividend payout in shares 0 Other transfers within 0 Transfers from , ,896 Dividend payout 0 Capital repayment 0 Decrease in specific s owing to impairment of assets 0 Transfer of specific s to operating revenues 0 Transfer of specific s to financial revenues -512, ,896 Other decreases in 0 CLOSING BALANCE IN THE ACCOUNTING PERIOD (30 June 2004) 15,364,030 13,603,376 66,333, , ,791,560 5,636,600 6,107, ,327,447 9

11 CONSOLIDATED CAPITAL FLOW STATEMENT in '000 of SIT Retained net profit/loss General Special Capital conversion s Subscribed Capital Profit Treasury Net profit for reserves reserves stock the period Total OPENING BALANCE IN THE ACCOUNTING PERIOD (1 January 2004) 15,364,030 13,859,929 63,423, ,828 2,666,027 11,791, ,125 2,785, ,569, ,233 Transfers to , ,606,335 3,764,414 6,095 Subscribed (or paid) new 0 General 0 Specific s 0 Net profit/loss for the year 3,600,240 3,600,240 Covering of loss from previous periods by part of 0 Other increases 158, ,079 Increase in currency conversion differentials 6,095 6,095 6,095 Transfers within 0 0-1,421, ,079, ,657, Allocation of net profit to profit reserves 0 Covering of loss from previous periods by part of profit for the financial year 0 Covering of loss from previous periods and the financial year with profit reserves or other elements 0 Allocation of elements to special treasury stock 0 Dissolution of treasury stock by returning shares to original elements 0 Merging of elements except for legal reserves and general into newly defined share 0 Dividend payout in shares 0 Other transfers within -1,421,891 4,079,197-2,657,306 0 Transfers from , , , , ,326 Dividend payout 0 Capital repayment 0 Decrease in specific s owing to impairment of assets 0 Transfer of specific s to operating revenues 0 Transfer of specific s to financial revenues 0 Other decreases in -128, ,480 Decrease in currency conversion differentials -154,304-44, , ,326 CLOSING BALANCE IN THE ACCOUNTING PERIOD (30 June 2004) 15,364,030 13,859,929 61,847, ,828 6,859,281 11,791, ,125 3,606, ,006,962 2,002 10