The bank transferred EUR 1.1bn in bad loans to the Bank Asset Management Company last year. In addition, the state injected EUR 243m into the bank on 8 October to shore up its capital base.

Abanka now has a purged balance sheet and a capital base for further growth, the bank said in a preliminary earnings release on Thursday.

Bank and group capital ratios were in excess of 18% as at the end of the year and the share of non-performing loans dropped to 12.2% at group level.

Net interest revenue rose 5% to EUR 55.2m and net fees were up 2% to EUR 29.4m.

Abanka is likely to be merged with Banka Celje before it is privatised in accordance with commitments Slovenia made when it requested EU clearance for state aid.