Nova Ljubljanska Banka (NLBR) Q2 2025 earnings summary

Executive summary

• Profit after tax for H1 2025 reached EUR 274.4 million, with strong loan and deposit growth across all markets, supported by the SLS Group and Summit Leasing acquisitions, and robust retail and corporate lending.

• Net interest income rose 1% year-over-year, with net fee and commission income up 9% year-over-year, mainly from investment funds and bancassurance, while total assets grew 11% to EUR 29.6 billion.

• Maintained leading market positions in Slovenia and SEE, with market shares above 10% in five of six core markets and a 37.6% leasing market share in Slovenia.

• Accelerated digital transformation, with new mobile app launches, increased digital service penetration, and all Strategy 2030 initiatives launched.

• Continued commitment to ESG targets and attractive dividend payouts, with a combined EUR 12.85 per share for the first half and a total 2025 payout projected at EUR 257 million.

Financial highlights

• Net operating income grew 5% year-over-year to EUR 635 million, with net non-interest income up 18% and net interest income up 1% to EUR 466.4 million.

• Total costs increased 15% year-over-year to EUR 296.3 million, mainly due to salary adjustments, IT investments, and integration costs.

• Cost-to-income ratio rose to 46.7% (+3.9 p.p. YoY), but remained below guidance.

• Net loans to customers grew 21% year-over-year to EUR 17.5 billion; deposits from customers up 10% to EUR 22.8 billion.

• Cost of risk was -4 bps in H1 2025, reflecting net releases of impairments and provisions.

Outlook and guidance

• Full-year 2025 loan growth guidance upgraded to low double-digit, with recurring revenues expected around EUR 1.2 billion and CIR projected at ~48%.

• 2026 outlook: regular income above EUR 1.3 billion, CIR below 48%, high single-digit loan growth, and payout 50–60%.

• Cost of risk guidance maintained at 30–50 bps, with expectations to land at the lower end barring material deterioration.

• Dividend payout for 2025 expected at 50% of 2024 profit, with a second tranche subject to approval later in the year.

• M&A capacity up to EUR 4 billion RWA, supporting further regional expansion.