ANNOUNCEMENT OF THE PERFORMANCE OF ABANKA VIPA D.D. CONSOLIDATED FINANCIAL STATEMENTS FOR THE FIRST NINE MONTHS OF 2014

Transcription

1 ABANKA VIPA d.d. Slovenska 58, 1517 Ljubljana, Slovenija T F SWIFT: ABANSI2X ANNOUNCEMENT OF THE PERFORMANCE OF ABANKA VIPA D.D. INCLUDING THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE FIRST NINE MONTHS OF 2014 In accordance with the Ljubljana Stock Exchange Rules and the applicable legislation and with best business practices, Abanka Vipa d.d. hereby publishes its performance results, including the unaudited unconsolidated and consolidated financial statements, for the first nine months of As required by law, this announcement will also be available online at as of 7 November 2014 for a period of no less than 5 years. The announcement in the English language is for information purposes only. In the reporting period, the operating income of Abanka amounted to EUR 31,922 thousand, which represents a 28.8% increase over the corresponding period of The Bank s gross income went up by 5.8%, whilst due to efficient management expenses decreased by 8.8% compared to the first nine months of Due to impairments and provisions of EUR 31,249 thousand (the first nine months of 2013: EUR 56,395 thousand) and corporate income tax, the Bank ended the first nine months of 2014 with a net profit of EUR 405 thousand (in the respective period of the preceding year it generated a net loss of EUR 27,325 thousand) and the Abanka Group with a net profit of EUR 5,979 thousand. As at 30 September 2014, the balance sheet total of Abanka amounted to EUR 2,551,375 thousand. After the reporting period, Abanka increased its capital and transferred a part of its bad debt to the Bank Asset Management Company (Družba za upravljanje terjatev bank; hereinafter: DUTB), in line with continuation of activities to strengthen the stability of Abanka and maintain the safety of its operations. Following the capital increasee and the transfer of bad debts to DUTB, Abanka has directed all its resources towards achieving the planned business objectives and honouring the commitments made to the European Commission by the Republic of Slovenia. Management Board of Abanka Vipa d.d. Ljubljana, 7 November 2014 Abanka Vipa d.d. Slovenska 58, 1517 Ljubljana Telephone: +386 (0) address: info@abanka.si

2

3 1. EXPLANATORY NOTES TO THE UNAUDITED UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE FIRST NINE MONTHS OF 2014 As at 30 September 2014, total assets of Abanka equalled EUR 2,551,375 thousand, which decreased by 16.0% or EUR 485,098 thousand in nominal terms compared to the 2013 yearend. As at the reporting date, EUR 1,659,668 thousand of total assetss were loans and receivables to non-bank customers, after a decrease of EUR 161,009 thousand or 8.8%, loans and receivables to banks decreased by EUR 48,433 thousand or 45.1%, and reached EUR 58,840 thousand compared to the 2013 year-end. The securities portfolio totalled EUR 682,931 thousand and was 4.4% or EUR 28,780 thousand higher than as at 31 December Cash and cash balances with the central bank equalled EUR 79,,665 thousand and dropped by 78.8% or EUR 295,916 thousand nominally compared to the 2013 year-end. Compared to 31 December 2013, at the end of September 2014 financial liabilities to non- sheet liabilities, bank customers accounted for EUR 1,871,179 thousand of total balance which decreased by 1.7% or EUR 31,802 thousand. In the reporting period, financial liabilities to non-bank customers fell as a result of lower deposits from the Ministry of Finance, which went down by 55.7% or EUR 199,008 thousand, whereas deposits from the retail customers rose by 3.5% or EUR 37,711 thousand nominally and deposits from corporate customers and sole proprietors by 29.5% or EUR 128,476 thousand. As at the reporting date, financial liabilities to the central bank amounted to EUR 71,024 thousand, liabilities to other banks equalled EUR 269,222 thousand and the issued securities totalled EUR 49,266 thousand. As at 30 September 2014, financial liabilities to the central bank went down by EUR 385,189 thousand or 84.4% as a result of debt repayment to the European Central Bank. Financial liabilities to other banks decreased by EUR 93,560 thousand or 25.8%, whereas securities experienced only a slight decrease of EUR 1,294 thousand or 2.6%. Total equity as at the end of September 2014 amounted to EUR 245,052 thousand, which was EUR 32,358 thousand or 15.2% higher than at the 2013 year-end, owing primarily to higher revaluation reservess amounting to EUR 31,687 thousand. Net interest income disclosed in the income statement for the reporting period totalled EUR 45,192 thousand. This was EUR 937 thousand or 2.0% below the level recorded in the respective period of Interest income decreased mostly as a result of a lower volume of operations, whereas interest expenses dropped due to both a lower volume of operations and lower interest rates. Net fee and commission income grew by EUR 272 thousand or 1.2% to EUR 22,061 thousand. In the reporting period, other net non-interest expenses (excluding net fee and commission income) amounted to EUR 9 thousand, while in the corresponding period last year other net non-interest expenses (excluding net fee and commission income) stood at EUR 4,379 thousand. Operating expenses totalled EUR 35,322 thousand, decreasing by 8.8 % or EUR 3,424 thousand over the same period of the preceding year. Net provisioning and impairment expenses equalled EUR 31,249 thousand, which was 44.6% or EUR 25,146 thousand less than in the first nine months of For the reporting period, Abanka posted a net profit of EUR 405 thousand, whereas in the same period last year it recorded a net loss of EUR 27,325 thousand. Basic net earnings per share in the first nine months of 2014 were EUR 0.03 and equalled diluted net earnings per share. Basic net earnings per share are calculated as the ratio of net profit to the average number of shares issued. In calculating diluted net profit per share, the weighted average number of shares is adjusted by the effects of all potentially diluted shares, which the Bank did not hold as at 30 September ABANKA Announcement September

4 Unaudited book value per share as at 30 September 2014 was EUR It was calculated as the ratio of all capital components to the number of shares subscribed as at the end of September Capital components also included net profit for the first nine months of Sep Dec Index (EUR thousand) (EUR thousand) 30 Sep. 2014/ 31 Dec Total assets 2,551,375 3,036, Book value per share (in EUR 1) Jan.-Sep Jan.-Sep Index (EUR thousand) (EUR thousand) Jan.-Sep. 2014/ Jan.-Sep Net interest income 45,192 46, Net non-interest income 22,052 17, Operating costs (35,322) (38,746) 91 Net provisioning and impairment expenses (31,249) (56,395) 55 Profit/(loss) before tax 673 (31,602) - Taxes (268) 4,277 - Net profit/(loss) for the year 405 (27,325) - Earnings per share (in EUR 1) 0.03 (3.80) - Changes to the Supervisory Board Prior to the General Meeting of Shareholders, held on 3 October 2014, the Supervisory Board was composed of eight members. Janko Gedrih served as its Chairman and Andrej Slapar as its Vice-Chairman, while Vladimir Mišo Čeplak, Franci Strajnar, Kristina Ana Dolenc, Snežana Šušteršič, Aljoša Uršič and Aleš Aberšek served as its members. At the request of the sole shareholder (the Republic of Slovenia or Slovenski državni holding, d.d. as its authorised representative) at the General Meeting of Shareholders, held on 3 October 2014, the following Supervisory Board members were recalled as of that date: Aleš Aberšek, Vladimir Mišo Čeplak, Aljoša Uršič, Snežana Šušteršič, Franci Strajnar and Kristina Ana Dolenc. Blaž Šterk, Barbara Kuerner Čad and Marko Garbajs were appointed new members of the Supervisory Board with a four-year term of office beginning on 4 October At its constitutive session, held on 13 October 2014, the Supervisory Board appointed Marko Garbajs its Vice-Chairman, replacing the former Vice-Chairman Andrej Slapar. Mr. Slapar will continue to serve on the Supervisory Board as its member. The Chairman of the Supervisory Board of Abanka Vipa d.d. remains Janko Gedrih. Changes to the Management Board Abanka is managed by a two-member Management Board, composed of Jože Lenič as President and Igor Stebernak as member. There were no changes to the Management Board in the reporting period. Changes to the shareholder structure The Bank s share capital amounted to EUR 150,000 thousand as at the end of the reporting period. On 18 December 2013, the Republic of Slovenia subscribed and fully paid up all 15,000,000 shares (ABKS) newly issued by Abanka, and thereby became a 100% owner of the Bank. ABANKA Announcement September

5 As at 30 September 2014, the Republic of Slovenia held 15,000,000 ordinary registered nopar value voting shares. The corresponding amount per no-par value share in the share capital was EUR as at the reporting date. Significant business events after the end of the reporting financial period On 25 September 2014, based on Abanka's Business Strategy and a proposal by the interministerial commission, the Government of the Republic of Slovenia gave its final approval to the implementation of measures to strengthen the stability of Abanka, i.e. recapitalisation, the transfer of bad debts to DUTB and the guarantee of the Republic of Slovenia for the liabilities of the DUTB. The following business events that occurred after the reporting period might have an impact on business decisions of the Report's users made on presented financial statements: In accordance with the resolution passed by the 29 th General Meeting of Shareholders of Abanka, held on 3 October 2014, on 8 October 2014 the Republic of Slovenia paid in 100,000 new ordinary no-par value registered shares amounting to EUR 243 million by in-kind contribution of the Republic of Slovenia bonds totalling EUR 242,999, and by cash contribution equalling EUR (the difference to the total recapitalisation issue value). On 10 October 2014, the Bank's share capital increase by EUR 1 million to EUR 151 million was entered into the Companies Register, whereas the Abanka Vipa shares (ABKS) were entered into the Central Securities Depository of Dematerialised Securities, kept by KDD, on 21 October On 13 October 2014, Abanka concluded the following agreements with DUTB: the Agreement on the Implementation of Measures to Strengthen Bank Stability, approved by the Government of the Republic of Slovenia, the Asset Management Agreement related to the measures for strengthening bank stability, and the Service Agreement related to the measures for strengthening bank stability. In line with the Agreement on the Implementation of Measures to Strengthen Bank Stability, Abanka sold and transferred its assets totalling EUR 423,816, to DUTB as of the date of signing the Agreement. The transfer mostly included non-performing loans of EUR 421,816, and bonds and equity shares with a transfer value of EUR 2,000, The total gross value of transferred assets amounted to EUR 1,143 million. The physical transfer of documentation is expected to take place in two phases, due to be completed by the end of December On 20 October 2014, based on the underlying transferred assets, DUTB issued bonds backed by the Republic of Slovenia at a total nominal value of EUR 424,600,000 with maturity date of 15 December At the end of October 2014, the international rating agency Fitch Ratings upgraded Abanka's Long-Term Issuer Default Rating from B to B+ and assigned it a stable outlook. Abanka's Viability Rating was also upgraded from b to b+. Other bank ratings remain unchanged Short-Term Issuer Default Rating at B, Support Rating at 5, and Support Rating Floor at B. Abanka's credit ratings were upgraded as a result of implemented measures of further bank stabilisation in line with the EU state aids rules (the second round of capital increase and the transfer of bad debts to DUTB). The higher Long-Term Issuer Default Rating and Viability Rating of the Bank mainly reflect its increased loss absorption capacity. Management Board of Abanka Vipa d.d. ABANKA Announcement September

6 2. UNAUDITED UNCONSOLIDATED FINANCIAL STATEMENTS OF ABANKA VIPA D.D. STATEMENT OF FINANCIAL POSITION as at 30 September 2014 Ser. No. Designation of Item ITEM DESCRIPTION As at 30 September 2014 As at 31 December A. 1. Cash and cash balances with the central bank 79, ,581 2 A. 2. Financial assets held for trading 9,986 13,994 3 A. 3. Financial assets designated at fair value through profit or loss 2,476 2,436 4 A. 4. Available-for-sale financial assets 554, ,684 5 A. 5. Loans and receivables 1,729,306 1,933,427 - loans to banks 58, ,273 - loans to non-bank customers 1,659,668 1,820,677 - other financial assets 10,798 5,477 6 A. 6. Held-to-maturity investments 124, ,458 7 A. 16. Non-current assets held for sale A. 10. Property and equipment 32,202 33,878 9 A. 11. Investment property A. 12. Intangible assets 5,030 4, A. 13. Investments in subsidiaries 7,953 12, A. 14. Tax assets 2,613 7,605 - current tax assets deferred tax assets 2,600 7, A. 15. Other assets 2,110 2, TOTAL ASSETS (from 1 to 13) 2,551,375 3,036, P. 1. Deposits and loans from the central bank 71, , P. 2. Financial liabilities held for trading 8,108 11, P. 3. Financial liabilities designated at fair value through profit or loss - 8, P. 4. Financial liabilities measured at amortised cost 2,203,096 2,317,799 - deposits from banks 8,118 10,855 - deposits from non-bank customers 1,871,065 1,894,043 - loans from banks 261, ,927 - loans from non-bank customers debt securities issued 49,266 50,560 - other financial liabilities 13,429 10, P. 9. Provisions 21,727 28, P. 10. Tax liabilities 1, deferred tax liabilities 1, P. 11. Other liabilities 583 1, TOTAL LIABILITIES (from 15 to 21) 2,306,323 2,823, P. 13. Share capital 150, , P. 14. Share premium 39,617 39, P. 16. Revaluation reserves 41,541 9, P. 17. Reserves from profit 13,235 13, P. 19. Retained earnings (including profit from the current year) TOTAL EQUITY (from 23 to 27) 245, , TOTAL LIABILITIES AND EQUITY ( ) 2,551,375 3,036,473 ABANKA Announcement September

7 INCOME STATEMENT for the period ended 30 September 2014 Ser. No. ITEM DESCRIPTION Period ended 30 September 2014 Period ended 30 September Interest income 2 Interest expenses (38,450) (55,960) 3 Net interest income (1 + 2) 45,192 46,129 4 Dividend income 1, Fee and commission income 30,937 30,999 6 Fee and commission expenses (8,876) (9,210) 7 Net fee and commission income (5 + 6) 22,061 21,789 8 Realised gains on financial assets and liabilities not measured at fair value through profit or loss 9 Net gains on financial assets and liabilities held for trading 1,919 1, Losses on financial assets and liabilities designated at fair value through profit or loss 11 Exchange differences 58 (45) 12 Net (losses)/gains on derecognition of assets other than held for sale (162) 6 13 Net other operating expenses (6,766) (8,754) 14 Administration costs (31,122) (34,998) 15 Depreciation and amortisation (4,200) (3,748) 16 Provisions 5, Impairment (36,788) (57,210) 18 Total loss from non-current assets held for sale (127) (9) 19 TOTAL PROFIT/(LOSS) BEFORE TAX FROM CONTINUING OPERATIONS ( ) 20 Tax (expense)/income related to profit/(loss) from continuing operations 83, ,089 4,045 2,653 (22) 673 (367) (31,602) (268) 4, TOTAL PROFIT/(LOSS) AFTER TAX FROM CONTINUING OPERATIONS ( ) 405 (27,325) 22 NET PROFIT/(LOSS) for the financial year (21) 405 (27,325) in EUR 23 Basic earnings per share 0.03 (3.80) 24 Diluted earnings per share 0.03 (3.80) ABANKA Announcement September

8 STATEMENT OF COMPREHENSIVE INCOME for the period ended 30 September 2014 Item No. ITEM DESCRIPTION Period ended Period ended 30 September 30 September NET PROFIT/(LOSS) FOR THE FINANCIAL YEAR AFTER TAX 405 (27,325) OTHER COMPREHENSIVE INCOME/(LOSS) AFTER TAX (3) 31,687 (10,132) ITEMS THAT MAY BE RECLASSIFIED TO PROFIT OR LOSS ( ) 31,687 (10,132) 3.1 Available-for-sale financial assets ( ) 38,177 (11,919) Net valuation gains/(losses) taken to equity 40,352 (12,356) Net (gains)/losses transferred to profit or loss (2,175) Income tax relating to items that may be reclassified to profit or loss (6,490) 1,787 TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE FINANCIAL YEAR AFTER TAX (1+2) 32,092 (37,457) ABANKA Announcement September

9 3. UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS OF THE ABANKA VIPA GROUP CONSOLIDATED STATEMENT OF FINANCIAL POSITION as at 30 September 2014 Item No. ITEM DESCRIPTION As at 30 September As at 31 December Cash and cash balances with the central bank 79, ,581 2 Financial assets held for trading 9,986 13,994 3 Financial assets designated at fair value through profit or loss 2,476 2,436 4 Available-for-sale financial assets 554, ,684 5 Loans and receivables 1,697,513 1,924,473 - loans to banks 58, ,965 - loans to non-bank customers 1,626,985 1,809,717 - other financial assets 11,545 5,791 6 Held-to-maturity investments 124, ,458 7 Non-current assets held for sale Property and equipment 48,862 50,512 9 Investment property 2,739 1, Intangible assets 5,183 4, Tax assets 2,994 7,958 - current tax assets deferred tax assets 2,952 7, Other assets 18,631 17, TOTAL ASSETS (from 1 to 12) 2,547,952 3,048, Deposits and loans from the central bank 71, , Financial liabilities held for trading 8,108 11, Financial liabilities designated at fair value through profit or loss - 8, Financial liabilities measured at amortised cost 2,194,493 2,327,132 - deposits from banks 8,118 10,855 - deposits from non-bank customers 1,861,480 1,886,057 - loans from banks 261, ,391 - debt securities issued 49,266 50,560 - other financial liabilities 14,525 12, Provisions 21,807 30, Tax liabilities 1, current tax liabilities deferred tax liabilities 1, Other liabilities 1,016 1, TOTAL LIABILITIES (from 14 to 20) 2,298,233 2,836, Share capital 150, , Share premium 39,617 39, Revaluation reserves 41,150 9, Reserves from profit 13,400 13, Retained earnings (including profit/(loss) from the current year) 5,515 (456) 27 EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT (from 22 to 26) 249, , Equity attributable to non-controlling interests TOTAL EQUITY ( ) 249, , TOTAL LIABILITIES AND EQUITY ( ) 2,547,952 3,048,403 ABANKA Announcement September

10 CONSOLIDATED INCOME STATEMENT for the period ended 30 September 2014 Item No. ITEM DESCRIPTION Period ended Period ended 30 September September Interest income 84, ,146 2 Interest expenses (38,538) (56,652) 3 Net interest income (1+2) 45,922 47,494 4 Dividend income 1, Fee and commission income 30,932 31,602 6 Fee and commission expenses (9,088) (9,441) 7 Net fee and commission income (5+6) 21,844 22,161 8 Realised gains on financial assets and liabilities not measured at fair value through profit or loss 4,045 2,623 9 Net gains on financial assets and liabilities held for trading 1,919 1, Losses on financial assets and liabilities designated at fair value through profit or loss (22) (367) 11 Exchange differences Net (losses)/gains on derecognition of assets other than held for sale (127) Net other operating expenses (3,905) (3,894) 14 Administration costs (33,349) (37,962) 15 Depreciation and amortisation (4,757) (4,284) 16 Provisions 6, Impairment (32,353) (58,583) 18 Share of loss of associates accounted for using the equity method - (885) 19 Total loss from non-current assets held for sale (127) (9) 20 TOTAL PROFIT/(LOSS) BEFORE TAX FROM CONTINUING OPERATIONS ( ) 6,509 (30,682) 21 Tax (expense)/income related to profit/(loss) from continuing operations (530) 3, TOTAL PROFIT/(LOSS) AFTER TAX FROM CONTINUING OPERATIONS (20+21) 5,979 (26,883) 23 NET PROFIT/(LOSS) for the financial year (22) 5,979 (26,883) a) Profit/(loss) attributable to owners of the parent 5,971 (26,917) b) Profit attributable to non-controlling interests 8 34 in EUR 24 Basic earnings per share 0.40 (3.74) 25 Diluted earnings per share 0.40 (3.74) ABANKA Announcement September

11 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME for the period ended 30 September 2014 Item ITEM DESCRIPTION Period ended Period ended No. 30 September September NET PROFIT/(LOSS) FOR THE FINANCIAL YEAR AFTER TAX 5,979 (26,883) 2 OTHER COMPREHENSIVE INCOME/(LOSS) AFTER TAX (3) 31,599 (10,141) 3 ITEMS THAT MAY BE RECLASSIFIED TO PROFIT OR LOSS ( ) 31,599 (10,141) 3.1 Foreign currency translation (3.1.1) (88) (24) Translation losses taken to equity (88) (24) 3.2 Available-for-sale financial assets ( ) 38,177 (11,902) Net valuation gains/(losses) taken to equity 40,352 (12,362) Net (gains)/losses transferred to profit or loss (2,175) Income tax relating to items that may be reclassified to profit or loss (6,490) 1,785 4 TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE FINANCIAL YEAR AFTER TAX (1+2) 37,578 (37,024) a) Profit/(loss) attributable to owners of the parent 37,570 (37,058) b) Profit attributable to non-controlling interests 8 34 ABANKA Announcement September