Nova Ljubljanska Banka (NLBR) H1 2024 earnings summary

Executive summary

• Reported H1 2024 profit after tax of EUR 292.0 million, up 20% YoY, driven by strong net interest income, robust loan growth, and stable asset quality.

• Net interest income rose 21% YoY to EUR 460.4 million, with net interest margin at 3.68%.

• Advanced strategic initiatives, including the Summit Leasing acquisition, Addiko Bank AG takeover offer, and Generali Investments, Skopje acquisition.

• AGM approved a EUR 110 million dividend payout as the first tranche for 2024.

• SEE banks contributed 58% to Group results, with all banks profitable and NLB Komercijalna Banka, Beograd, and NLB, Ljubljana, as top contributors.

Financial highlights

• Net operating income reached EUR 604.0 million, up 18% YoY; net fee and commission income increased by 11% YoY.

• Achieved mid-single-digit loan growth in both retail (5% YTD) and corporate (4% YTD) segments; gross loans to customers up 7% YoY.

• Cost of risk was negative at -18 bps in H1 2024, reflecting provision releases.

• NPL ratio stable at 1.5%, with coverage ratio at 66.7%.

• Total assets reached EUR 26.6 billion, up 8% YoY; deposits from customers stable at EUR 20.7 billion.

Outlook and guidance

• Upgraded 2024 guidance: high single-digit loan growth, cost of risk below 20 bps, ROE a.t. above 15%, recurring revenues ~EUR 1.2 billion, CIR ~45%.

• 2030 strategy targets: doubling assets to over EUR 50 billion, recurring revenues above EUR 2 billion, and profit above EUR 1 billion.

• 2025 outlook: similar income and CIR, cost of risk 30-50 bps, high single-digit loan growth, payout ratio >40% of 2024 profit, M&A capacity up to EUR 4 billion RWA.