Nova Ljubljanska Banka (NLBR) Q1 2026 earnings summary

Executive summary

• Achieved Q1 2026 profit after tax of EUR 119.3m, down 5% YoY due to lower non-recurring gains and negative valuation effects, while recurring profit before impairments rose 5% YoY on strong net interest and fee income growth.

• Delivered solid loan and deposit growth across geographies, with gross loans up 14% YoY and deposits up 12% YoY.

• Net interest income grew 3% YoY, but net interest margin declined by 27 bps YoY to 3.19%.

• Asset quality remained strong, with NPL ratio stable at 2.0% and NPE ratio at 1.4%.

• All subsidiary banks were profitable, with SEE banks contributing 51% of Group profit.

Financial highlights

• Net operating income was flat YoY at EUR 311.8m; net interest income rose 3% YoY to EUR 240.6m, while net non-interest income fell 7% due to fewer one-offs.

• Net fee and commission income increased 8% YoY, driven by investment funds, bancassurance, and account services, especially in SEE markets.

• Total costs rose 3.5% YoY, mainly from wage inflation, salary adjustments, and IT investments.

• Cost-to-income ratio (CIR) was 47.4%, stable YoY.

• Net impairments and provisions for credit risk were EUR 12.8m, mainly from lending growth and credit migration.

Outlook and guidance

• 2026 outlook targets recurring income above EUR 1.3bn, CIR below 48%, cost of risk 30–50 bps, high single-digit loan growth, and 55% dividend payout of 2025 profit.

• 2027 guidance aims for recurring income ~EUR 1.5bn, CIR below 47%, and payout ratio of 50–60% of 2026 profit.

• Strategy 2030 targets >EUR 2bn recurring revenues, >EUR 1bn recurring profits, CIR <45%, and normalized RoE >20%.

• GDP growth in the region expected at 2.4% in 2026 and 3.1% in 2027.

• Guidance for 2026-27 reaffirmed.