Nova Ljublj. S Regulatory News (NLB)

November 9, 2023 Nova Ljubljanska Banka

NLB Group Continues to Perform Strongly in Q3, Thus Increasing its Capacity for Responsible Decisions and Operations

Pursuant to the Rules of the Ljubljana Stock Exchange and Article 158 of the Market Financial Instruments Act, relating to the Article 17 of the Regulation (EU) No 596/2014, NLB d.d., Trg republike 2, 1000 Ljubljana, announces ?.

In a fragile operating environment with escalating geopolitical tensions, volatile financial conditions, and environmental hazards, an organisation's business model resilience remains one of the key distinguishing factors among the market participants. NLB Group is proud to report that its business results in the first nine months of 2023 fully confirm this ambition has been met. 

The Group achieved EUR 144.2 million in profit after tax in the third quarter of 2023, a growth of 18% QoQ, providing the Bank and the Group with comfortable buffers to remain a responsible and trustworthy counterparty for all stakeholders - as it has been so many times before.

You may find key highlights of the NLB Groups' business operations in Q3 2023, Interim Report and Investor presentation on the links below.

? Key Highlights in Q3 2023

? Interim Report

? Investor presentation

The outlooks for NLB Group for 2023 and 2025 are therefore slightly improved to better reflect the expected performance of the NLB Group in the current environment, which also factors in all of the envisaged regulatory measures. We believe that such transparent communication with all stakeholders sets us apart from many other business entities and helps us build relationships on honesty and trust. 

"The strengthened trust of our clients and other stakeholders is one of the achievements that we have really been proud of, especially in these days, when we mark the fifth anniversary of the listing of NLB's shares on the Ljubljana Stock Exchange and GDRs on the main market of the London Stock Exchange. It is far from being the only one, though," emphasized NLB's CEO Bla? Brodnjak upon the publication of the results. "When we look at the development of overall performance of NLB and NLB Group over the past five years, we can genuinely celebrate it," he added, listing a couple of them to illustrate: growth of business and talent pool, successfully acquiring and merging Komercijalna Banka, Beograd and Komercijalna Banka, Podgorica, as well as N Banka to NLB Group; expanding leasing operations in as many as three markets etc. And we have achieved all of this while providing clients with reliable and contemporary banking services and solutions, whenever and wherever they need them, and added value to shareholders. He stressed further: "Ever since the listing five years ago, investors drew a total return of more than 93%, comprised of almost 45% valuation appreciation and a 48% dividend return. Moreover, the second tranche of this year's dividend scheduled for payment in December will additionally increase shareholders' total return, and thus exceed our expectations at the time of the IPO." 

"Above all, however, we are proud - and continuously motivated - by the responsible approach to business and all other actions our Group has undertaken in our ever more connected home region, be it with intensively intertwining sustainability into all our operations, responding preventively and proactively to health and economic challenges such as the COVID pandemic, the continuous decisive support of sports and culture, or compassionate humanitarian donations to various organisations, individuals and communities, such as, for instance, during the recent floods in Slovenia," added NLB's CEO. He also emphasized that: "NLB Group will continue creating better footprints, responding proactively and supportively to help our clients and economies face any challenges, whether they are the result of unpredictable natural or unfavourable economic circumstances. Furthermore, we will also, together with our partners, continue pointing out any systemic decisions that could negatively affect the strength and prosperity of the economy or impairing social or governance pillars of a sustainable development of our society."

Chairman of the Supervisory Board of NLB Primo? Karpe also reflected on the past five years of NLB and NLB Group, highlighting above all its vast progress in corporate and strategic management. "The achievements of the Group demonstrate that its focus in the SEE region and its markets is the right one. It is based on a serious consideration of the Group's capabilities and strengths on the one hand, and the opportunities presented to it on the other. However, NLB, its subsidiaries, and other value creating companies of the Group are on the brink of a new strategically important period, which will be marked by a new business strategy that is already being developed and will be presented to stakeholders next year," he said. 

Invitation to the Webcast Presentation

We kindly invite all interested stakeholders to the Third Quarter 2023 Financial Results Earnings Call, hosted by the Management Board of NLB, that will take place on Thursday, November 9, 2023, at 16:00 CET/15.00 GMT and will be available here: https://www.nlb.si/ir-events.

Members of the Management Board will, as usual, receive and address your questions live during the webcast, however, if you already know what you wish to ask them, you may submit your questions now. If you register for the event, you will be able to send them via web app, or you may simply send them to the email address IR@nlb.si.