Nova Ljublj. S Regulatory News (NLB)

2 April 2020

The Supervisory Board approves NLB Group's 2019 Reports and convenes General Meeting

Today, on 2 April 2020, the NLB Supervisory Board met at its 61st meeting and confirmed two NLB Group reports for 2019: the Annual Report and the Annual Report on Corporate Social Responsibility. The Supervisory Board also confirmed the proposal by the Management Board to convene the General Meeting of NLB d.d., which is scheduled for 15 June. More information will be available in the convocation which will be published in accordance with the Articles of Association of Nova Ljubljanska banka d.d., Ljubljana and the applicable regulations.

Both reports that were confirmed today by the Supervisory Board - NLB Group Annual Report 2019 and NLB Group Annual Report on Corporate Social Responsibility 2019 - are available to all interested stakeholders. They illustrate that NLB Group, in addition to good and stable business results, as a systemic player in the SEE markets also plays an important societal role and actively contributes to a better quality of life in the region.

Stable business results and a clear focus

The results of our region-oriented focus speak for themselves. As the unaudited business results that were published on 20 February already showed, in 2019, NLB Group continued its trend of stable and profitable business operations, recording a net profit of EUR 193.6 million. All subsidiary banks in the SEE markets operated with a profit, contributing a substantial 39% to the Group's results. The closing process for the Komercijalna Banka a.d. Beograd is so far being pursued as planned.

Primož Karpe, Chairman of NLB Supervisory Board, highlighted: "The Supervisory Board is very pleased that 2019's good business results, the successfully completed privatization process of NLB d.d., fulfilment of the last of the severe EC commitments and other important milestones only strengthened the Group's focus - to uphold a systemically important role on all the markets where it operates. NLB Group is actively seeking new business opportunities and responds to digital trends, as well as customers' preferences and needs. This, after all, is also being proven by the Group's swift and effective response to the outbreak of the new coronavirus - COVID-19 in March 2020, since which the Group has taken various necessary measures to protect its employees and customers, while at the same time ensured undisrupted services. The Supervisory Board welcomes such a proactive approach, a clear set of goals, and open communication."

Since the circumstances due to the new coronavirus outbreak continue to change daily, it is difficult to predict the magnitude and duration of consequences, as well as likely material negative impacts on the Group's business operations and the economic system.

"Not only NLB, but the entire Group, is in very solid shape and has already proven that it can handle stressful situations. Therefore, we believe that it will tackle the challenges posed by the new coronavirus decisively, and that it will overcome this crisis successfully," added the Chairman of NLB Supervisory Board.

SEE region is NLB Group's home

"In times such as this, more than ever, the knowledge, experience, ingenuity, perseverance, and team spirit come to light, as well as stable business operations. The bank's strong capital position, with all of its capital ratios above capital requirements, got even stronger after successfully obtaining approval from the regulator for the inclusion of two Tier 2 instruments in the total amount of 240 million EUR into calculation of regulatory capital. A strong capital position in the current environment is of key importance to go successfully through the upcoming uncertain and challenging period. This, along with systemic measures taken by the government and the Bank of Slovenia to help the economy, enable us to overcome the consequences of the epidemic and economic hibernation," CEO Blaž Brodnjak referred to the aforementioned outbreak of the new coronavirus and its consequences as the NLB Group Annual Report on Corporate Social Responsibility for 2019 was approved.

"NLB Group truly proves that we are not just a simple sum of numbers, balance sheets, and financial results. We are people who know and understand the industry in which we work; who develop innovative, customer-oriented products and services; who feel close to the environment and the region where we live; and who want to contribute to a better quality of life. For us, SEE is not just a spot on a map. This is our home. Here is where we tackle the challenges we face with passion, eagerness, and energy. Here is where we make sure that the region and its people are ready - for whatever may come."

You can find out more about NLB Group's CSR projects in the Annual Report on Corporate Social Responsibility 2019.  

NLB General Meeting scheduled for 15 June  As mentioned above, The Supervisory Board also confirmed the Management Board's proposal to convene the General Meeting of NLB d.d., which is planned to take place on 15 June.

At the General Meeting, the shareholders will vote on the proposal regarding the distribution of distributable profit from 2019. In line with previous communication, the Management and Supervisory Boards will propose to the shareholders to keep the entire distributable profit generated by NLB d.d. totalling EUR 228,039,879.73 (including the net profit generated in 2019, as well as the profit carried over from the previous years) undistributed as profit to be carried over and, depending on further developments, considered for the eventual partial distribution towards the end of 2020 or later.

The Supervisory Board will also propose to the General Meeting of NLB d.d. to nominate members of the NLB Supervisory Board, since the four-year mandate of current four members expires in 2020. The shareholders will also vote on the proposal regarding the amendments to the Articles of Association of NLB, referring to the participation of workers in the governing body of the Bank in accordance with the Decision passed by the Constitutional Court of the Republic of Slovenia.

More information about each item on the agenda for the 35th General Meeting of NLB d.d. will be available in the convocation.

NLB Communications