NLB d.d., Ljubljana announces new SREP reqirement

Pursuant to the Rules of the Ljubljana Stock Exchange relating to Article 158 of the Market Financial Instruments Act NLB d.d., Trg republike 2, 1000 Ljubljana, announces that on 2 February 2022 it received the SREP 2021 Decision of the European Central Bank (ECB) relating to the establishing prudential requirements.

On 2 February 2022, the ECB issued a new SREP decision for NLB under which it has reduced the Pillar 2 Requirement from 2.75% to 2.60% while Pillar 2 guidance remains at 1.00%. New SREP decision shall apply as of 1 March 2022. NLB is as of this date required to maintain the OCR at the level of 14.10% on a consolidated basis, consisting of:

•           10.60% TSCR (8% Pillar 1 Requirement and 2.60% Pillar 2 Requirement (of which at least 56.25% must be held in CET1 capital and at least 75% must be held in Tier 1 capital)); and

•           3.5% Combined Buffer Requirement (2.5% Capital Conservation Buffer, 1% O-SII Buffer and 0% Countercyclical Buffer).

More details on the composition of the new capital requirements can be found in the table below.

As at 30 September 2021, NLB Group TCR ratio stood at 17.2% and CET 1 ratio at 14.7%, which is well above the new SREP requirement. NLB d.d. intends to maintain additional Management Buffer above the regulatory requirements.

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NLB d.d., Ljubljana