The Slovenian government remains committed to the long awaited Abanka, NLB privatisations according to Finance Minister Andrej Bertoncelj.
Abanka ranks as the third-largest bank in Slovenia with a market share of assets of around 9.6%.
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According to Slovenian press reports, Bertoncelj is also keen to sell a further 10% stake in Nova Ljubljanska Banka (NLB).
The largest lender in Slovenia, NLB, accounts for around 30% of Slovenia’s bank sector by assets. The Slovenian government presented a privatisation plan to the EU in 2017. The plan was met with some scepticism by EU regulators, leading to an in-depth EU investigation.
The Slovenian baking sector almost required an international bailout in 2013.
As a result of bad loans, the government injected around €3bn into the local state-owned lenders to avoid bank failures. Around €1.6bn of the state aid package was injected into NLB.
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By GlobalDataSince then, Slovenian lenders have carried out major balance sheet clean-ups. In particular, the banks have restructured so that they can create new lending capacity.
Abanka, NLB privatisations: government retains 25% NLB stake
In exchange for EC approval of state aid, the government is committed to disposing of its entire stake in Abanka. Similarly, the government will sell a further 10% stake in NLB.
In November, the government sold a 65% stake in NLB via an initial public offering. A 6.25% stake was acquired by the European Bank for Reconstruction and Development.
At the same time as pressing ahead with privatisation, the Slovenian government intends to retain a 25% stake in NLB.
In fiscal 2018, NLB posts a net profit of €203.6m (FY2017: €225m)
Total assets rose by 4% in fiscal 2018 to €12.74bn.
NLB has 349 branches and serves around 1.8 million active customers.
Abanka was established in 1955 as the Yugoslav Bank for Foreign Trade. The bank was renamed Abanka in October 2015 following its merger with Banka Celje. Abanka operates a branch network of around 57 outlets.
