Nova Ljubljanska Banka (NLBR) Q3 2025 earnings summary

Executive summary

• Achieved profit after tax of EUR 406.0 million for the first nine months of 2025, with ROE at 16.0% and normalized ROE at 22.8%, supported by resilient operating income and robust digitalization progress.

• Net interest income grew 1% YoY, driven by strong loan growth and the SLS Group acquisition; net fee and commission income rose 8% YoY, with digital penetration reaching 60%.

• Total assets increased 8% YoY to EUR 30.4 billion, with gross loans up 11% YtD and 16% YoY, and customer deposits up 6% YtD and 11% YoY.

• Cost-to-income ratio rose to 46.1% due to integration, IT investments, and salary adjustments.

• Maintained strong capital position, with total capital ratio at 17.9% and CET1 at 14.7%, well above regulatory requirements.

Financial highlights

• Net operating income reached EUR 963.2 million (+4% YoY), with net interest income at EUR 702.9 million (+1% YoY) and net non-interest income at EUR 260.3 million (+14% YoY).

• Result after tax declined 5% YoY to EUR 406.0 million, reflecting higher costs and lower net interest margin (3.34%, down 0.31 pp YoY).

• Cost of risk stood at 9 bps, with net impairments and provisions for credit risk totaling EUR 10.2 million.

• Dividend payout for 2025 is proposed at EUR 257 million, representing 50% of last year's profit and a 7.1% yield.

• Loan-to-deposit ratio at 77.1%; NPL ratio at 1.7% with strong coverage.

Outlook and guidance

• 2025 outlook: net operating income above EUR 1,300 million, CIR below 48%, cost of risk 30–50 bps, and loan growth in high single digits to low double digits.

• ROE a.t. guidance revised to ~14.5%; normalized ROE a.t. to ~19.5%.

• Dividend payout ratio for 2025 expected at 50–60% of profit, with potential tactical uplift if no M&A opportunities arise.

• 2030 ambition: recurring revenues >EUR 2 billion, recurring profits >EUR 1 billion, CIR <45%, normalized ROE >20%.

• Cost of risk expected at lower end of 30–50 bps guidance.