Impairments and provisions totalled EUR 16.49m in the first half of the year, up EUR 10.68m on the same period last year, according to a press release issued by the bank on Wednesday.

The bank attributed the rise to higher credit risk costs as a result of "high indebtedness of Slovenian companies, payment delays and growing insolvency procedures".

The group, comprising SKB banka and SKB Leasing, posted EUR 54.12m in net banking revenues, down 4.5% on the first half last year. At the same time deposits increased by 4.8%.

The bank's Core Tier 1 ratio at the end of June stood at 13.25%, which the bank said "guarantees stability also for the time of general deterioration in the quality of credit portfolios in the banking sector".

The SKB group ended the last two business years with the highest profits in the Slovenian banking system, CEO Gerald Lacaze commented, adding that profitability has also been in the focus of operations this year.

Today, Societe Generale reported EUR 433m in net profit for the second quarter of the year, down 42% on the same period last year and considerably below analysts' expectations.