Press release

Another successful business year for SKB

Financial results 2015

For the SKB Group, consisting of SKB Bank and SKB Leasing, 2015 was once again a very successful business year. SKB Group concluded the financial year 2015, despite the considerable pressure of competition on the financial market, with a net profit of EUR 34.3 million after tax.

SKB Group
in 000 EUR / 1-12 2015 / 1-12 2014 / Diff. / Change (%)
Net interest income / 68,258 / 68,446 / -188 / -0.3%
Net non-interest income / 36,393 / 35,679 / 714 / 2.0%
Net banking income / 104,651 / 104,125 / 526 / 0.5%
Overhead expenses / -55,477 / -53,779 / -1,698 / 3.2%
Operating profit / 49,174 / 50,346 / -1,172 / -2.3%
Provisions and impairments / -7,727 / -7,357 / -371 / 5.0%
Other / -150 / -586 / 436 / -74.4%
Profit before tax / 41,297 / 42,403 / -1,107 / -2.6%
Tax / -6,967 / -7,088 / 121 / -1.7%
Net profit / 34,330 / 35,315 / -986 / -2.8%

SKB BANK

SKB Bank, the parent company of SKB Group, closed the financial year 2015 with a net profit of EUR 34.2 million, very close to the 2014 results (EUR 34.6 million).

During the year the bank managed toincrease its market share in loansby 50 basis points to 8.6% despite a negative loan market growth at -5,5%. Both the market share of loans granted to companies (by 40 basis points to 6.9%) as well as the market share of loans granted to individuals (by 20 basis points to 11.2%), have strengthened. In 2015, SKB Bank increased the volume of new loans granted to individualsby a fifth, especially housing loans, increasing its market share by 30 basis points, to 11.8%.

Thanks to the good reputation that SKB enjoys on the market and consequently thanks to the customers' trust, the market share of collected depositsincreasedby 40 basis points to 8.0%.

In 2015, SKB Bank offered to the clients several new products, including three structured deposit products and two new insurance products, Best Doctor and Funeral insurance.SKB also invested in its network of branches and fully renovated its outlets in Ljutomer and Kranj.

SKB LEASING

2015 was also a successful business year for SKB Leasing, a company which is 100% owned by SKB Bank. SKB Leasing concluded the year with a net profit of EUR 4.9 millioncompared to EUR 4.8 million in 2014. Despite strong competition on the leasing market, SKB Leasing increased the volume of new production by 14%, and continues to rank among the leading leasing companies in Slovenia. This high performance is a result of successful commercial activities, expertise and dedication of its employees.

SKB GROUP

SKB Grouphas continued to monitor very strictly its operating costs. Moreover, it has faced increased costs related to supervision, IT and project. As a consequence, SKB Group’s cost to income ratio rose to 53% in 2015 from 51.6% in 2014. However, SKB Group’scost-effectiveness remainedwell-above the average in the Slovenian banking system.

The cost of risk in 2015 remained at the level of 2014 which reflects the long-standing conservative and prudent risk management policy. SKB Group had a relatively low default rate in most customer segments. There was a noticeable reduction in the portfolio of non-performing loans given to companies, which is due to efficient work of SKB’s AssetRecovery management.

SKB Group continues to maintain a strong capital base, with a capital adequacy ratio of 16.18% at the end of 2015.

Francois Turcot, CEO of SKBcommented on the achieved financial success in 2015: "In a difficult banking environment, SKB has again obtained excellent commercial and financial results in 2015. The daily implementation of the four values of Group SociétéGénérale (Team spirit, Innovation, Commitment and Responsibility) by each employee of SKB Bank and SKB Leasing has reinforced our capabilities to offer to our clients a competitive and innovative range of products and services.We will continue to strive to maintain customers’ trust, without which the excellent business results in the past year could not be achieved. In addition to our customers we are trusted also by the international professional community.We are especially proud of the fourth recognition conferred on us by The Banker magazine, which nominated SKB the bank of the year 2015 in Slovenia."

Additional information: Jelka Novak Katona, Head of Corporate Communication, SKB d.d., phone: (01) 471 59 79, e-mail: