Nova Ljubljanska Banka (NLBR) investor relations material

Executive summary

• Achieved H1 2026 profit after tax of EUR 252.4 million, down 8% YoY due to higher impairments and lower non-recurring income, despite strong fee and commission growth and double-digit loan expansion.

• Net operating income rose 3% YoY to EUR 653.7 million, with net interest income up 5% and net fee and commission income up 10%.

• Loan and deposit growth continued across all geographies and segments, with total assets reaching EUR 31.85 billion (+8% YoY).

• Maintained robust capital and liquidity, with CET1 at 14.8%, TCR at 19.3%, and LTD at 78.4%, well above regulatory requirements.

• Digital transformation advanced, with digital user penetration exceeding 65% and digital sales up 8.1% YoY.

Financial highlights

• Net interest income: EUR 488.0 million (+5% YoY); net fee and commission income: EUR 178.8 million (+10% YoY).

• Net operating income: EUR 653.7 million (+3% YoY); cost-to-income ratio improved to 46.5%.

• Total costs increased 3.6% YoY, mainly due to higher IT and salary costs.

• Cost of risk at 32 bps, at the lower end of guidance.

• Dividend yield at 6.15%, with EUR 138.4 million paid and a second tranche planned.

Outlook and guidance

• Reaffirmed full-year outlook for 2026 and 2027, targeting recurring income above EUR 1.3 billion in 2026 and around EUR 1.5 billion in 2027.

• CIR expected below 48% in 2026 and below 47% in 2027; loan growth projected at high single digits.

• Dividend payout ratio targeted at 55–60% of profit if no major M&A occurs.

• Cost of risk guidance for 2026 and 2027 at 30–50 bps, likely at the lower end.

• Macroeconomic risks include energy price shocks, inflation, and geopolitical tensions, but SEE region expected to grow 2.5% in 2026.