NLB Under Supervision
The Capital Assets Management Agency (AUKN), the custodian of state-owned shares in companies, said following a meeting with supervisors at the NLB bank on Tuesday that it expected an audit of all operations that have contributed to a deterioration of the state-owned bank's results in recent years.
Possibly referring to a dodgy deal in Serbia involving poultry giant Agroziv, AUKN said it did not only mean the revision of deals by the largest Slovenian bank that were already the subject of an ongoing audit.
The agency expects that the findings of the audit will be followed up with a concrete assignment of accountability for the deals concerned, with appropriate penalties for those responsible and the introduction of mechanisms that will contain or prevent such deals in the future.
As regards financial goals, AUKN expects NLB to increase by 2013, along with an improvement in capital adequacy, its net return on equity to 10%. The agency expects a Tier 1 capital ratio of at least 10%.
AUKN would moreover like to see an improvement in the bank's liquidity and in the loan to deposit ratio to 114% by the end of the year and below 105% by 2013 and not by 2014 as envisaged in the bank's strategy for the 2010-2015 period.
The agency meanwhile welcomed measures that have cut the share of operating expenses after the beginning of 2010, although it added that reorganisation was proceeding too slowly and that the goal set were not ambitious enough, especially when compared to the competition.
AUKN is also concerned by existing and potential bad investments, expressing agreement with ideas to transfer bad investments onto a separate legal entity.
The meeting was part of meetings that the agency plans to hold every three months with supervisors and managements of companies in state ownership, AUKN also wrote in a press release
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