NOVAKBM (KBM): Preliminary information on results of Nova KBM for the period January – September 2013 - raport 44

UNI - EN REPORT No44/2013

In accordance with the provisions of the Ljubljana Stock Exchange Rules and the Financial Instruments Market Act, Nova KBM d.d. hereby gives the following notice:

For the period from 1 January to 30 September 2013, Nova KBM reported a pre-tax, pre-provision profit of €21.8 million. Net provisions and impairment losses amounted to €67.8 million. Net interest income totalled €51.1 million, and the interest margin, calculated on the average total assets, stood at 1.60%. Non-interest income, including net fees and commissions, reached €29.8 million. Net fees and commissions earned by the Bank were sufficient to cover 52.9% of its operating costs. The Bank posted a pre-tax loss from continuing operations of €45.9 million for the first nine months of 2013, with its net loss standing at €43.7 million.

The Bank´s total assets were €4,093.8 million at the end of September, down €244.8 million, or 5.6%, on the end of 2012. The Bank´s market share in terms of total assets decreased in the first nine months of the year by 0.1 percentage point to reach 9.3% at the end of September.

At the end of September, net loans and advances given to customers were €2,707.8 million, a fall of €183.4 million on the end of 2012. As measured by loans to the non-banking sector, the Bank´s market share remained flat at 9.3%. Deposits from customers were €2,748.7 million, down €168.6 million on December 2012, giving the Bank a market share of 10.9%, a decrease of 1.3 percentage points on the end of 2012. The customer net loans-to-deposits ratio fell by 0.6 percentage points to reach 98.5% at the end of September.

The Bank´s total equity amounted to €245.7 million at the end of September, an increase of 27.6%, or €53.1 million, on the end of 2012. The capital increase resulting from the conversion into equity of a €100 million state-provided hybrid loan facility was partially offset by the net loss incurred by the Bank in the first nine months of the year. As of 30 September, the Bank´s total capital adequacy ratio stood at 8.88%.

The quality of the Bank´s assets is still the subject of an independent review, the aim of which is to obtain the relevant data for both the procedures before the competent European institutions and the transfer of bad loans to the state-run Bank Assets Management Company. The outcome of this review, which is expected to be published in the first half of November, may have a considerable impact on the year-end results of the Bank, causing these to be different than projected.

This notice will be available on the Bank´s website (www.nkbm.si) from 30 October 2013.