Loss on ordinary activities totalled EUR 36.88m after the group, which is part of Societe Generale, posted EUR 5.13m in operating profit in 2012.

Interest income fell to EUR 93.22m from EUR 107.87m, according to a press release posted by SKB on the Ljubljana Stock Exchange.

SKB bank recorded a net loss of EUR 31.54m (after EUR 3.67n net profit in 2012) with the loss on ordinary activities at EUR 38.49m as interest income fell to EUR 84.53m from EUR 98.60m in 2012.

The bank blames the loss on adverse economic conditions, with the release describing 2013 as one of the most difficult years for Slovenian banks.

The release also underscores that owing to support from its owner and its banking model, SKB has been considerably less affected than other banks, suffering only a moderate decline in turnover and earnings.

Despite the situation, the bank increased its market share in loans by 110 basis points from the end of 2012 to 8%. The market share in loans to households was up by 20 basis points to 10.9% and the market share in corporate loans rose by 110 basis points to 6.6%.

The market share in deposits rose 120 basis points to 7.7% at the end of 2013.

"Due to its strict risk management and despite its very conservative attitude concerning impairments, SKB was able to maintain a strong capital base with a Tier 1 ratio of 13.57% at the end of 2013."

Meanwhile, the release also says that last year was one of the most successful for SKB Leasing, which is 100% owned by SKB bank. SKB Leasing increased profit before taxes by 16% on 2012 to EUR 4.9m.