Nova Ljubljanska Banka (NLBR) investor relations material

Executive summary

• Delivered strong half-year results for 2026, with solid organic loan and deposit growth across all geographies and segments, despite an 8% YoY decline in profit after tax to EUR 252.4 million due to higher impairments and lower non-recurring income.

• 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%.

• Upgraded to A rating by S&P and Moody's, reflecting improved performance and recognition.

• Strategic focus remains on organic growth, with M&A opportunities pursued but not at the expense of risk or capital discipline.

• Management board renewed for another five-year term, ensuring stability for 2030 aspirations.

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/income ratio improved to 46.5% (-0.3 pp YoY); cost growth contained at 3.6% YoY despite inflationary pressures.

• Profit after tax: EUR 252.4 million (-8% YoY), impacted by higher impairments and lower non-recurring gains.

• Dividend yield at 6.15%, with payout ratio at 55% of profit and potential to rise to 60%.

• Total assets reached EUR 31.85 billion (+8% YoY); loan-to-deposit ratio at 78.4%.

Outlook and guidance

• Guidance for high single-digit to low double-digit loan growth maintained; recurring income expected above EUR 1.3 billion in 2026 and ~EUR 1.5 billion in 2027.

• CIR expected below 48% in 2026 and below 47% in 2027.

• Dividend payout ratio targeted at 55–60% of profit.

• Cost of risk expected to remain within 30–50 bps, likely at the lower end.

• 2030 targets expected to be 80-85% organic, with remainder from strategic M&A.