In 2010 Abanka will maintain its focus on Safety and Stability of Operations

10.12.2009

Ljubljana, 10 December 2009 - Abanka held its New Year's event today with business partners at the Hotel Union in Ljubljana. The main part of the event was a highly topical talk given by Velimir Bole MA of the Economic Institute of the Faculty of Law entitled "The Economy between Turnaround and Recovery".

A humanitarian donation was made to the society Beli obroč for activities in seeking employment for the victims of crime.

In his welcome address and review of past events, Mr. Aleš Žajdela MA, CEO of Abanka, pointed out that as a result of correct business decisions in the past, the bank had continued to operate safely and with stability this year, which has still been marked by the general economic crisis. In August 2009 Abanka signed an agreement with a selected group of foreign banks on taking a syndicated loan amounting to 80 million euros, which was one of the rare newly acquired syndicated loans in Europe. 

In September 2009 the bank issued a bond backed by the Slovenian Government amounting to 500 million euros. The successful issuing of the bond on the international market and the extraordinary interest of investors point to the high level of confidence in the Slovenian financial system, while at the same time it confirms the recognisability and standing of Abanka Vipa in the international capital market. Abanka has been actively involved in the revival of the Slovenian economy through the inclusion of a guarantee scheme, where its market share exceeded 40 percent. The bank's total assets thereby grew by 14 percent and far exceeded expectations.

The credit rating agencies Fitch Ratings and Moody's confirmed Abanka's existing long-term credit risk rating at the level of BBB and A3, while in view of the general deterioration of the environment in which Abanka operates, they have changed their rating of future outlooks from stable to negative. Among the positive factors, the Fitch Ratings agency highlighted the high level of recognition for Abanka, the reduction in exposure to market risk related to investments in equity and a satisfactory capital base.

Additional incentives for the bank are the two awards received by Abanka this year; the prize for the best annual report in communication among financial companies for 2008, and the prestigious award from the magazine The Banker for the best bank of Slovenia in 2009.

"After a year of stagnation in lending owing to the difficult conditions in financial markets and consequences in the operation of the economy, and owing to more encouraging forecasts for 2010 and the now ensured sources of finance, Abanka is planning a 10 percent growth in loans. The main emphasis will be on loans for businesses and on cooperation with all outside institutions that are using special schemes to stimulate this segment and to promote active cooperation in obtaining guarantees under the guarantee scheme both for businesses and private individuals," stressed the CEO, Aleš Žajdela MA, in making his forecast for operations in 2010.

In the coming year Abanka will continue to be the first bank for safe custody and administrative services, a recognised player in the investment banking sector and an interbank partner recognised and respected by foreign banks. Through the Abanka group of subsidiaries, it will extend its operations in the markets of the former Yugoslavia. Alongside a concern for existing clients, a major goal in 2010 will be the acquisition of new clients to which Abanka will offer a broad range of services, with special emphasis on the acquisition of sight deposits. Major emphasis will be placed on services that bring interest-free revenue, with special emphasis on the further strengthening of Abanka's position in payment transactions, documentary operations and in the area of card transactions. Abanka will continue to facilitate safe investments and will actively market security products against interest rate and currency risk, as well as financial services for enterprise. It will also continue to develop a range of services within the private banking field.

As is traditional at Abanka, at the New Year's business event a humanitarian donation was made for the "Gifts to Lift the Spirit" programme in the amount of 5,000 euros, this time to the Beli obroč society for their activities in finding employment for the victims of crime.