Nova Ljubljanska Banka (NLBR) investor relations material

Executive summary

• 9M net operating income rose 7% YoY to €1,028.2m and pre-provision result increased 9% to €539.5m; profit after tax grew 1% to €412.0m as impairments and provisions climbed.

• Q3 profit after tax was €159.6m, up 20% YoY; recurring income and loan growth supported performance.

• Gross loans grew 10% YoY to €20.5bn; deposits rose 7% to €25.4bn.

• Strong capital and liquidity supported growth and shareholder returns; CET1 was 14.4% and unencumbered liquid assets were 31.9% of total assets.

Financial highlights

• 9M net interest income rose 7% to €749.3m and net fee and commission income increased 10% to €274.4m.

• Net non-interest income increased 7% to €278.9m; financial transaction income fell 34% to €18.9m, partly offset by higher fees and other income.

• Total costs rose 4% to €461.6m, including higher employee and IT expenses; cost growth remained below operating income growth.

• Impairments and provisions totaled €52.9m versus €13.5m a year earlier, including €41.5m for credit risk and €11.3m for other provisions.

• Q3 profit after tax was €159.6m, up 20% YoY; net operating income was €374.5m.

Outlook and guidance

• 2026 recurring revenue guidance rose to above €1,350m; CIR guidance improved to ~46%, with high-single-digit loan growth.

• 2026 cost of risk guidance remains 30–50 bps, with expectations toward the upper end; ROTE after tax is expected at ~14% and normalized ROE above 18%.

• 2027 guidance: recurring income above €1,500m, CIR below 47%, cost of risk 30–50 bps and high-single-digit loan growth.

• Dividend payout guidance is 50%–60% of 2026 profit; potential M&A capacity is up to €4bn RWA, subject to AT1 issuance and a temporary dividend reduction.