In the first quarter of last year, the core bank posted a net loss of EUR 36.5m and the group EUR 34.6m, though it is unclear whether the figures are directly comparable.

Contraction of lending and the continued deterioration of the credit portfolio in the first quarter led to a decline in group total assets of 1% from the end of 2012, to EUR 14.3bn.

The group's capital adequacy ratio was 10.7% and the Core Tier 1 capital 8.9%, the bank said after a session of the supervisory board.

The supervisory board also got acquainted with preparations for the transfer of non-performing loans to the bad bank.

It said the bank has prepared the list of assets to be transferred and can react "as soon as the statutory and institutional framework is in place".

After being briefed on the broader restructuring plans, the supervisors voiced their "full support" to the management for the programme that is expected to be finalised in May.

The specifics of the plan were not revealed, but media reported recently that the plan may involve laying off up to 700 staff and closing down a third of the branches.

"The bank has made a break with the past and set the foundation for comprehensive transformation," chief supervisor Sašo Cunder was quoted as saying.