Nova Ljubljanska Banka (NLBR) Q4 2024 earnings summary

Executive summary

• Achieved EUR 514.6 million net profit for 2024, with pre-provision profit up 9–10% year-over-year, and robust growth in assets, loans, and deposits across all geographies.

• Completed acquisitions of Summit Leasing, SLS Group, and Generali Investments AD Skopje, expanding regional presence and making leasing a key business stream.

• Advanced digital transformation and sustainability initiatives, with NLB Klik recognized as the best digital bank in Slovenia and a top 5% ESG rating.

• Paid out EUR 220 million in dividends in 2024, with a 50% payout ratio planned for 2025 and ambitions to expand further by 2030.

• Launched a new business strategy focused on digitalization, simplification, and balanced revenue generation.

Financial highlights

• Net operating income rose 14% year-over-year to EUR 1,244.8 million; net interest income up 12% to EUR 934.2 million; net non-interest income up 19% to EUR 310.6 million.

• Total assets grew 8% to EUR 28.0 billion; gross loans up 19% to EUR 16.7 billion; deposits up 7% to EUR 22.2 billion.

• Cost-to-income ratio improved to 45.7%, with total costs rising 20% due to inflation, IT investments, and integration costs.

• Dividend payout proposed at EUR 257 million (EUR 12.85 per share), representing a 50% payout ratio and a 9% gross dividend yield.

• Return on equity after tax at 16.5% (down from 21.0%); normalized ROE at 25.5%.

Outlook and guidance

• Recurring income for 2025 expected to stabilize at around EUR 1.2 billion, with cost-to-income ratio temporarily rising to 48% before targeting below 45% by 2030.

• Loan growth projected at high single-digit levels, with cost of risk guidance for 2025 set at 30–50 basis points.

• Dividend payout ratio to remain at 50% of 2024 profit in 2025, increasing to 50–60% by 2026.

• Strategic focus on digital transformation, aiming for over 80% of new production to be digital by 2030.

• ROE after tax projected to stabilize at ~15%, with normalized ROE above 20%.