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Emst & Young SvetovanJe, d, 0 , 0, Dunajska cesta 111 1000 Ljubljana

Building a better working world

Siover>ia

Bank of Slovenia Siovenska, 35 1505 Ljubljana Siovenija

12 December 2013

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This report (the 'Report') on me Nova KBM d.d. group ("NKBM" or "the ~ bank") has been prepared under the terms of the Engagement Agreement dated 6 September 2013 between Ernst & Young Svetovanje, d.o.o. ('EY') and Nova Kreditna Ba_l1l conducted by l!.oS. '1

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Executive sLJmfT\ary

1. Executive summary 1.1. Review objectives The primary objective of our work is to conduct an Asset Quality Review (AQR) and Data Integrity Verification (OIV) exercise as part of Bank of Slovenia's overall programme to review the carrying value as at 31 December 2012 of loan assets held by the ten largest Siovenian banks, incorporating the above work as well as a Stress Test (ST) to be undertaken by Oliver Wyman. The objective of the AQR work is to assess the sufficiency of risk classification and provisions for the sampled items within the inscope loan portfolios, including the quantification of the overall provisioning requirements for the selected portfolios under an 'incurred loss' approach as defined by current accounting standards and using relevant regulatory guidelines.

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