In 2017 Nova KBM designed a new Strategic Plan for 2017-2020 which sets out an ambitious vision for Nova KBM to become the best bank in Slovenia by 2020. In this it focuses on five strategic pillars: client excellence, growth and profitability, effective risk management and compliance, operational efficiency, and organisational culture and development of employees.
In 2017, one of major strategic focuses was to streamline the product portfolio. The Bank introduced new retail bundles, upgraded the mobile bank service and designed a range of services for its affluent clients (Premium) as well as a special offer for customers employed in partner companies, Banka na delu (Bank@Work).
Through its proactive approach to customers, strengthening of the advisory role, and the upgraded product portfolio (new bundles, cash management), Nova KBM increased its market share in corporate operations. By its lending activity and participation in numerous banking syndicates, the Bank demonstrated a significant contribution to the support for and development of the Slovenian economy.
Apart from its core business and activities to increase revenue generation, the Bank focused on cost-efficient operation and optimization at all levels of its operations. Both the Group and the Bank increased net profit in comparison with the previous year, namely the Group by 58% and the Bank by 39%. The Bank continues to reduce both gross and net non performing loans via a dedicated organization established to do so. The impact of these actions had a positive impact on the Bank’s net income.
With the aim of improving the quality of services, several changes in the Bank’s organisational structure and the branch office network were carried out. In 2017, the Bank merged operations of some branch offices, while continued introducing special bank counters in post offices of Pošta Slovenije, and carefully examining possibilities for opening new branch offices. Nova KBM remained the bank with the largest banking network, as in cooperation with its strategic partner, Pošta Slovenije, it provided its services in nearly at 500 post offices throughout
Slovenia, in addition to 60 own branch offices.
After the merger of the three banks, i.e. Nova KBM, and former KBS d.d. and PBS d.d., in 2016 and 2017, a further step was taken to expand the range of Nova KBM’s services through acquisition of Summit Leasing Slovenija d.o.o., one of the leading leasing companies in Slovenia, enabling the Bank to further improve its offer in consumer financing.
Dr. Andrej Fatur, President of the Supervisory Board, said at the release of the Annual report: “In 2017 Nova KBM successfully implemented the strategic development plan which is supported also by the Bank’s owners, that share the same goals with the Management Board and employees in the area of improving the operations and operational efficiency. The Bank’s sustainable profitable business operations and the strengthening of its active role in the Slovenian banking market proves that Nova KBM is well on track to realize its vision.”
“The very strong business results of Nova KBM are without question the result of the committed work of our colleagues, as we step by step implement our ambitious growth strategy. During 2017 we introduced many innovations and improvements for our clients, most recently the Bundle Komplet and also the Naprej Kredit, which have seen amazing take-up from our customers. Our clients clearly recognize excellent value and convenience, and express this in satisfaction surveys. Client Excellence is extremely important to us and will continue to be our 'North Star' as we progress with implementation of our strategy,” commented last year’s business results John Denhof, President of the Management Board.
Credit ratings increase
Positive changes recorded in the economic environment and the improvement in the Bank’s operations were reflected also in higher ratings assigned by credit rating agencies in 2017. In 2017, both Moody’s Investors Service (Moody’s) and Fitch Ratings upgraded their ratings for the Bank. At the end 2017, the Bank’s rating assigned to it by the Moody’s credit rating agency and by the Fitch agency stood at Ba2 and BB, respectively.
