The groups' net income reached EUR 107.2m, down 6.3% year-on-year. Meanwhile, income from interest was down 13.1% to EUR 67.7m.

The group said in a press release posted on the web site of the Ljubljana Stock Exchange that its operations were affected by the tough economic situation in the country and the consequent high risk cost.

SKB pointed out that economic activity in Slovenia had decreased considerably in all sectors last year. Investments shrunk while debts of companies increased and so has their ability to pay off debt.

Profit from regular operations excluding risk cost stood at EUR 47.1m, which was 8.9% less than in 2011. The reduction is the result of a decrease in net income.

Non-interest income increased by 8.3% year-on-year to EUR 39.5m. This growth is in large part the result of the optimisation of SKB's investment portfolio. The group continued streamlining in 2012, cutting cost by 4.1%.

SKB's capital adequacy ratio stood at 13.4% at the end of 2012. The bank also increased its market share from 7.1% to 7.7% in 2012.