REG - Nova Ljubljanska - 3rd Quarter Results

Nova Ljubljanska Banka dd LjubljanaAnnouncement

10/11/2022 11:30

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RNS Number : 0105G  Nova Ljubljanska Banka d.d.  10 November 2022

NLB Group Generates EUR 377.8 million profit after tax in the First Nine
Months

 

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:

 

The remarkable performance of NLB Group in year 2022 continued in the third
quarter, by achieving EUR 91.7 million of pre-provision result, the highest
since the IPO in 2018.

 

Perilous times, marked with geopolitical tensions and increasing prices are
having direct and indirect impact on the performance of the leading financial
institution in South-eastern Europe. With growth rates in our home region
expected to moderate yet remaining positive in 2023, and inflation forcing
central banks to react by increasing interest rates, the economic climate
remains challenging. Nevertheless, with profit after tax in the first nine
months of the year totalling EUR 377.8 million (including one-off effects from
the acquisition of N Banka) and the total capital ratio at 16.6% - well above
the regulatory requirement, the Group stands confidently prepared for any
potential incremental worsening of the business environment.

 

"NLB Group business results in the first nine months are excellent and do not
yet show the level of stress that the market expects," emphasized NLB's CEO
Blaž Brodnjak upon the publication of the results. "We are confident that
they should translate into added value for our shareholders with the expected
payment of dividends, firstly as this year's second tranche in the total
amount of EUR 50 million, which is EUR 2.50 per share [this will amount to
promised EUR 100 million in dividends in 2022] expected to be paid out after
the General Meeting in December, and then with all subsequent pay-outs. By
2025, we project a total capital return through solid cash dividends in the
cumulative amount of EUR 500 million (including 2022 pay-outs), which would on
the one hand ensure a stable dividend increase, and on the other provide room
for incremental organic growth and tactical M&A opportunities," he added.

 

New opportunities, however, are "precisely the thing that NLB Group
successfully addresses as it strives to constantly pursue its' path of value
accretion," emphasized Primož Karpe, Chairman of the Supervisory Board of NLB
d.d, and also cited the increased importance of leasing within the Group.
"After entering the Slovenian market with NLB Lease&Go in the spring of
2020, leasing operations have been gaining momentum so much so that a new
leasing company was recently established in North Macedonia, and all
regulatory approvals for the purchase of a leasing entity in Serbia were
obtained. All this gives us confidence that leasing will once again become a
significant part of the Group. It is planned that in its mature phase, leasing
will contribute more than EUR 1 billion to the total assets of the Group,
through organic and potentially also inorganic growth," he explained.

 

You may find key highlights of the NLB Groups' business operations in Q3 2022,
Interim Report and Investor presentation on the links below.

·    Key Highlights in Q3 2022
(http://www.nlb.si/nlb/nlb-portal/eng/investor-relations/financial-reports/2022/key-highlights-in-q3-2022.pdf)

·    Interim Report
(http://www.nlb.si/nlb/nlb-portal/eng/investor-relations/financial-reports/2022/interim-report-of-nlb-group-for-q3-2022-eng-final.pdf)

·    Investor presentation
(http://www.nlb.si/nlb/nlb-portal/eng/investor-relations/financial-reports/2022/q32022_final.pdf)

 

More information about the NLB Group business results in Q3 and the first nine
months of 2022 will be presented during a webcast, hosted by the NLB
Management Board today at 16.00 CEST/15.00 GMT. The webcast will be available
here (https://87399.choruscall.eu/links/nlb221110.html) . Members of the
Management Board will receive and address your questions. You may post them
live, via web app, or you may simply send them to the email address IR@nlb.si
(mailto:IR@nlb.si) .

 

This announcement will be available on the NLB's website (www.nlb.si
(http://www.nlb.si/) ) as of 10 November 2022 for a period of at least 5
years.

 

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