April 18 (Bloomberg) -- Nova Kreditna Banka Maribor d.d. dropped the most in four months in Ljubljana trading after Slovenia’s second-biggest bank said its 2011 loss was bigger than earlier reported.
The shares slumped 7 percent to close at 3.30 euros, the most since Dec. 15, after dropping as much as 8.5 percent in earlier trading. The Maribor-based bank said yesterday its 2011 loss was 81 million euros ($106 million), compared with the 53.6 million euros reported on March 1, as bad loan provisions surged.
“The drop is no surprise and with such a loss the outlook for the stock isn’t good,” Radivoj Pregelj, an analyst at Abanka Vipa d.d. said over the phone today. “What’s surprising is such a big difference in earnings after the revision.”
Nova Kreditna, which started a dual listing in Warsaw about a year ago, is struggling with surging bad loans from the 2009 recession in Slovenia that was among the hardest hit in the 17- member euro region.
Lenders in Slovenia, including Nova Kreditna’s bigger rival Nova Ljubljanska Banka d.d., will probably incur further losses as the economy enters another recession, the jobless rate rises and the government embarks on austerity measures, the central bank said last month.
-- Editors: Tim Farrand, Peter Woodifield
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