Nova Ljublj. S Regulatory News (NLB)

After a strong second quarter, NLB Group confidently enters the rest of the year and continues with its decisive support to the society.

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:

Despite the uncertainties caused by decelerated economic growth, and high inflation, NLB Group demonstrated its resilience and delivered strong results in the second quarter of 2023. The successful performance of NLB Group can be attributed to the vigorous emphasis on prudent risk management and unwavering focus on maintaining high asset quality, strong capital base and robust liquidity position, while remaining committed to ever-improving excellent customer services and embracing opportunities for further growth.

The Group achieved EUR 122.6 million in profit after tax in the second quarter, a 2% growth rate compared to the first quarter of 2023. The moderate QoQ growth was primarily the result of lower release of impairments and provisions for credit risk and higher income tax related to dividends received from NLB Group members.

You may find key highlights of the NLB Groups' business operations in Q2 2023, Interim Report and Investor presentation on the links below.

· Key Highlights in Q2 2023

· Interim Report

· Investor presentation

Additionally, NLB's successful issuance of its inaugural green senior preferred 4NC3 bond in the benchmark size of EUR 500 million is doubtlessly worth highlighting as one of the key achievements of the second quarter. This once again confirmed the Group's commitment to sustainable principles and business operations to improve the quality of life and create a better footprint in its home region of South-eastern Europe.

In addition to improving the quality of life, however, NLB Group also continues to be firmly committed to improving the quality of business environment in the region. "With lending activities, the banks in our Group remain a reliable partner for both households and companies, which is reflected in solid business results in all segments and in all our markets," commented NLB's CEO Blaž Brodnjak upon the publication of the results. "Besides bringing positive results, understanding and predicting economic cycles together with prudent business operations and responsible lending also maintains the trust of our clients and other key stakeholders. The latter and a socially responsible role of NLB have been significantly challenged by the recent historical weather-related phenomenon in Slovenia, to which the bank reacted very decisively and concretely by defining a clear framework for supporting businesses and households in distress, while also donating EUR 4 million to the most affected municipalities for a sustainable reconstruction of the necessary infrastructure. I am truly proud of my colleagues in the Management Board and Supervisory Board for extending full support to these very meaningful measures." he added.

Stable operations and results are also strengthening the confidence of the Supervisory Board, whose Chairman Primož Karpe said: "Reliable and persistent are probably the best descriptions of the first half year of the NLB Group in 2023. In an environment with a plethora of mixed economic signals about the future ahead, all banking members contributed to good business results and to a solid balance sheet that provides a good basis for achieving set goals and addressing future opportunities. But on the other hand, whilst we constantly look into the future, we stand firmly in the present as well, and demonstrating social solidarity by taking actions that support the affected communities and individuals in our home country is something that will always remain part of our corporate DNA."

Invitation to the webcast presentation

We kindly invite all interested stakeholders to the presentation of the NLB Group Q2 and H1 2023 Results, hosted by the Management Board of NLB, that will take place on Thursday, August 10, 2023, at 16:00 CEST/14.00 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.

Investor Relations

NLB d.d., Ljubljana