The achieved return on equity after tax for the year ended 31 December 2022 was 10.96% at the Group level and 11.94% at the Bank level. The strong growth is also reflected in the 7.9% increase in loans to customers. Despite the challenging conditions in the economic environment, Moody's Investors Service rating agency upgraded the long-term credit risk rating of Nova KBM from Baa1 to A3 at the beginning of 2023 and changed the outlook to stable. It also raised the Baseline Credit Assessment and Adjusted Baseline Credit Assessment of the Bank from ba1 to baa3 and the rating of the Bank's issued debt instruments from Ba1 to Baa3. Moody's confirmed the rating of the Bank’s short-term credit risk, which remains P-2.
The year 2022 was exceptional in many respects, also due to the demanding business environment. We have successfully managed the restrictions related to the COVID-19 epidemic for the third consecutive year. Even in changed conditions, we provided banking services to our customers and proved to be a reliable financial partner. In order to minimise the expected negative consequences of the military conflict between Russia and Ukraine, increasing energy prices, problems with supply chains in certain industries and rising inflation as well as the resulting increase in reference interest rates, the Group adopted measures to identify in a timely manner the entities who have been or will be affected by the crisis, and measures to mitigate the negative consequences on their business or financial position and, consequently, the position of the Group. We have successfully transformed challenges into opportunities for improvements of our product and service range and strengthening of partnerships with key stakeholders.
The successful performance of Nova KBM is reflected in various surveys and awards received in several business areas. For the third consecutive year, our digital and mobile banks Bank@Net and mBank@Net were selected as the best in Slovenia. The European Bank for Reconstruction and Development (EBRD) awarded the Bank a recognition for its achievements in tackling the challenges related to climate change, promoting the use of more sustainable forms of energy and improving environmental and social performance. Based on our commitments, we introduced many good practices into our operations, and at the same time mapped out the future ESG path with ambitious goals. On the basis of the provided data and self-assessment, Nova KBM obtained the Green Star certificate with a four-star rating, which places it in the Green Leaders category. For the third time, the Bank received the national HORUS award for strategic management of corporate social responsibility.
An important milestone was reached at the beginning of 2023. After obtaining regulatory approvals, the sale of Nova KBM to OTP Bank Nyrt was completed on 6 February 2023, and Summit Leasing Slovenija was sold as part of this transaction. In Nova KBM we continue to focus on customers and on implementing strategic priorities. The latter include the further digitalisation of the Bank’s operations and services, conducting business in accordance with the ESG strategy and preparing for a gradual merger with the sister SKB banka. The aim of the integration is to combine the best of both banks and create a leading bank in Slovenia.
John Denhof, President of the Management Board of Nova KBM: “The year 2022 was an exceptional year for Nova KBM, as evidenced by our business results and many satisfied customers. Focusing on growth and sustainable profitability enables the Bank to invest in further development as well as ensure sufficient capacity to adapt to future changes in the financial and economic environment. I am proud that Nova KBM has since 2016 more than doubled its balance sheet, significantly improved its asset quality by reducing the non-performing portfolio by over 85%, successfully merged and integrated four banks and achieved sustainable profitability with strong regulatory compliance. We started year 2023 by arriving at the destination of our long journey. With Nova KBM joining OTP Group, and starting a new integration process together with SKB, the hard work finally paid off. We are looking forward with high expectations to our journey under the OTP umbrella. I would like to take this opportunity to thank all employees for their committed work and focus on common goals, and to our numerous customers and business partners for their cooperation and trust, and I look to the future with great optimism.”
The Annual Report of the Nova KBM Group and Nova KBM 2022 and the ESG Report is available at Financial Reports and Documents.
(Maribor, 12. April 2023) Nova KBM published the Report of the Nova KBM Group and the Bank for the 2022 financial year. The report indicates that we have consolidated our position as the most accessible bank in Slovenia and recorded excellent performance. We provide our customers with top quality and comprehensive financial services that can be performed anywhere and at any time. At the 2022 year-end Nova KBM recorded a profit of EUR 115.6 million and the Nova KBM Group EUR 106.1 million. The ESG Report was published along with the Annual Report, detailing our vision, activities and achievements in introducing environmental and social aspects into business and in the field of corporate governance.
