REG - Nova Ljubljanska - 1st Quarter Results

Nova Ljubljanska Banka dd LjubljanaAnnouncement

06/05/2026 16:30

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RNS Number : 2819D  Nova Ljubljanska Banka d.d.  06 May 2026

Nova Ljubljanska Banka d.d.

May 6, 2026

 

NLB Group in Q1 2026: Resilient Underlying Performance and Continued Growth
Momentum

 

Pursuant to the Rules of the Ljubljana Stock Exchange and Article 158 of the
Market Financial Instruments Act, relating to the Article 17 of the Regulation
(EU) No 596/2014, NLB d.d., Trg republike 2, 1000 Ljubljana, announces:

 

Ahead of the NLB Investor Day on 7 May 2026, that brings together financial
experts, investors, and analysts - this year in Sarajevo, Bosnia and
Herzegovina - the NLB Group announces its operating results for the first
quarter of 2026.

 

While key highlights are discussed in detail below, some key takeaways
include:

·      Profitability remained solid with profit after tax at EUR 119.3
million, down 5% YoY due to a higher burden of non-recurring items. The
underlying performance was resilient, with recurring profit before impairments
and provisions increasing 5% YoY.

·    Net interest income rose 3% YoY to EUR 240.6 million, supported by
continued loan volume growth, which more than offset the effect of lower
interest rates. On a QoQ basis, net interest income decreased by EUR 3.2
million, primarily due to fewer days in the period (EUR 5.1 million).
Excluding this effect, net interest income increased by EUR 1.9 million, with
higher income from loans more than offsetting the continued funding pressure
in SEE banks.

·      Loan growth remained broad‑based and robust. Gross loans
increased 3% YtD and 14% YoY, with strong momentum across geographies and
client segments. In particular solid growth was recorded in the corporate and
state segment in Slovenia, while retail lending, including housing and
consumer loans, continued to show healthy demand. NLB Group's subsidiary banks
in the South-Eastern European (SEE) region also maintained solid lending
growth.

·      The net interest margin showed stabilisation trends. On a QoQ
basis, NIM decreased marginally to 3.19%, with NLB starting to show
stabilisation and slight increase (to 2.57% from 2.54% in Q4), while SEE banks
experienced continued pressure to raise more expensive term deposits to fund
the strong long-growth.

·      Net fee and commission income continued to show robust growth,
achieving an increase of 8% YoY to EUR 86.6 million, driven mainly by
investment funds, bancassurance and account‑related services, with notable
contributions from SEE markets.

·      Net non‑interest income declined due to non‑recurring
effects. NNII decreased 7% YoY and 25% QoQ, driven primarily by the absence of
positive one‑offs from the prior year (such as resolved legal disputes and
real‑estate divestments), valuation effects, higher donations and
seasonality in the fee and commission income as well as the accrual of
regulatory costs in Q1.

·      Cost discipline remained solid with like‑for‑like cost growth
of 3.5% YoY, mainly due to salary adjustments and higher IT expenses. The
cost‑to‑income ratio stood at 47.4%, below guidance.

·      Asset quality indicators remained strong. Net impairments and
provisions for credit risk amounted to EUR 12.8 million, driven by loan growth
and credit migration, primarily in retail. The cost of risk stood at 26 bps
annualised.

·      Liquidity and funding profile remained sound. Deposit growth
continued to support loan expansion, with customer deposits up 1% YtD and a
healthy loan‑to‑deposit ratio of 77.8%.

·      The capital position with a total capital ratio as at 31 March at
19.4% and CET1 at 14.8%, supports continued organic growth, M&A
flexibility, and attractive shareholder remuneration, with a 55% dividend
pay‑out ratio expected for 2026, implying high‑single‑digit dividend
growth.

 

"The most resilient institutions are defined by long-term consistency and
discipline across changing and challenging conditions. NLB Group is one such
institution. Even in an environment defined by elevated uncertainty and
tighter financial conditions, the Group continues to demonstrate quiet
strength in its fundamentals and its ability to deliver stable performance.
This is not accidental. It is the result of a clear strategy, strong
governance, and a deeply embedded risk culture - a fact further reflected in
the recent NLB's upgrade by Moody's, which was both encouraging and
validating," commented NLB's CEO Blaž Brodnjak upon publication of the
results. "Our fundamentals remain solid across the board. Asset quality
indicators continue to be sound, while our liquidity and funding position
remain robust and well-diversified. This strong capital base of ours is not
merely a buffer - it is a strategic enabler. It supports continued organic
growth, provides flexibility for disciplined and value-accretive M&As, and
allows for attractive and sustainable shareholder remuneration. We look
forward to discussing all of this and more at tomorrow's NLB Investor Day,
hosted this time in Sarajevo," he added.

 

The Chairman of the Supervisory Board Primož Karpe also commented on the
Group's results in the first quarter, emphasising: "The Supervisory Board is
satisfied with the Group's disciplined execution and the continued strength of
its financial and risk profile. We are confident that Group's relentless focus
on disciplined delivery of strategic objectives, combined with a robust risk
framework and strong capital position, will continue to underpin its
resilience and sustainable value creation as the growth across key metrics
should accelerate in the years ahead."

 

You may find key highlights of the NLB Groups' business operations in the
first quarter of 2026, Interim report, Investor presentation and NLB Group
Factsheet on the links below.

·      Key Highlights in the First Quarter 2026
(https://www.nlbgroup.com/content/dam/nlb/nlb-group/documents/investor-relations/financial-reports/2026/q1/NLB-Group-in-Q1-2026-Key-Highlights.pdf)

·      Interim Report
(https://www.nlbgroup.com/content/dam/nlb/nlb-group/documents/investor-relations/financial-reports/2026/q1/NLB-Group-Interim-Report-January-March2026.pdf)

·      Investor presentation
(https://www.nlbgroup.com/content/dam/nlb/nlb-group/documents/investor-relations/financial-reports/2026/q1/NLB-Group-Presentation-Q1-2026.pdf)

·      NLB Group Factsheet
(https://www.nlbgroup.com/content/dam/nlb/nlb-group/documents/investor-relations/financial-reports/2026/q1/NLB-Group-in-Q1-2026-Factsheet.pdf)

 

You are Kindly Invited to Follow NLB Investor Day on 7 May 2026

 

NLB Group will reveal more about the key performance indicators, our
ambitions, our long-term vision, the progress of our strategy two years since
it was published, and, in general, our story behind the numbers at tomorrow's
(7 May, 2026) NLB Investor Day
(https://www.nlbgroup.com/int-en/investor-relations/investor-day-2026) .

 

Following our first two Investor Days in 2022 in Belgrade and in 2024 in
Ljubljana, the next NLB Investor Day will be held in Sarajevo, Bosnia and
Herzegovina. NLB's perspective as a systemically important institution namely
extends well beyond Slovenia's borders to all the markets in which we operate,
and to which we are opening opportunities for growth and development.
Registration for the live event is unfortunately no longer possible, however,
the interested public can follow the event online by registering here
(https://events.zoom.us/ev/Aip1wmj0RozZb-40JPnFGqiMZ_UKfZgMXGCgIjtcckZGOJWJs13v~Ajfqsz54lKoFAo-RPKf2IfNS-ZKsfXmj7_ZAFWsTnoxBnGgZzRQPslJwpw)
. A recording of the event will also be available later.

 

On Friday, 8 May 2026, NLB Investor Day will be followed by the Financials
Investor Conference - an exclusive gathering of investors and analysts,
featuring meetings with leading financial institutions from Central and
Eastern Europe, the Baltics and the Caucasus: Banca Transilvania, TBC Group,
Lion Finance Group PLC, Georgia Capital, Artea, and LHV.

 

This announcement will be available on the company's website (www.nlbgroup.com
(http://www.nlbgroup.com/) ) as of 6 May 2026.

 

Investor Relations

NLB d.d., Ljubljana

 

 

 

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