Nova Ljublj. S Regulatory News (NLB)

NLB Group Generates EUR 377.8 million profit after tax in the First Nine Months

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:

The remarkable performance of NLB Group in year 2022 continued in the third quarter, by achieving EUR 91.7 million of pre-provision result, the highest since the IPO in 2018.

Perilous times, marked with geopolitical tensions and increasing prices are having direct and indirect impact on the performance of the leading financial institution in South-eastern Europe. With growth rates in our home region expected to moderate yet remaining positive in 2023, and inflation forcing central banks to react by increasing interest rates, the economic climate remains challenging. Nevertheless, with profit after tax in the first nine months of the year totalling EUR 377.8 million (including one-off effects from the acquisition of N Banka) and the total capital ratio at 16.6% - well above the regulatory requirement, the Group stands confidently prepared for any potential incremental worsening of the business environment.

"NLB Group business results in the first nine months are excellent and do not yet show the level of stress that the market expects," emphasized NLB's CEO Blaž Brodnjak upon the publication of the results. "We are confident that they should translate into added value for our shareholders with the expected payment of dividends, firstly as this year's second tranche in the total amount of EUR 50 million, which is EUR 2.50 per share [this will amount to promised EUR 100 million in dividends in 2022] expected to be paid out after the General Meeting in December, and then with all subsequent pay-outs. By 2025, we project a total capital return through solid cash dividends in the cumulative amount of EUR 500 million (including 2022 pay-outs), which would on the one hand ensure a stable dividend increase, and on the other provide room for incremental organic growth and tactical M&A opportunities," he added.

New opportunities, however, are "precisely the thing that NLB Group successfully addresses as it strives to constantly pursue its' path of value accretion," emphasized Primož Karpe, Chairman of the Supervisory Board of NLB d.d, and also cited the increased importance of leasing within the Group. "After entering the Slovenian market with NLB Lease&Go in the spring of 2020, leasing operations have been gaining momentum so much so that a new leasing company was recently established in North Macedonia, and all regulatory approvals for the purchase of a leasing entity in Serbia were obtained. All this gives us confidence that leasing will once again become a significant part of the Group. It is planned that in its mature phase, leasing will contribute more than EUR 1 billion to the total assets of the Group, through organic and potentially also inorganic growth," he explained.

You may find key highlights of the NLB Groups' business operations in Q3 2022, Interim Report and Investor presentation on the links below.

· Key Highlights in Q3 2022

· Interim Report

· Investor presentation

More information about the NLB Group business results in Q3 and the first nine months of 2022 will be presented during a webcast, hosted by the NLB Management Board today at 16.00 CEST/15.00 GMT. The webcast will be available here. Members of the Management Board will receive and address your questions. You may post them live, via web app, or you may simply send them to the email address IR@nlb.si.

This announcement will be available on the NLB's website (www.nlb.si) as of 10 November 2022 for a period of at least 5 years.