NLB d.d. to acquire Sberbank banka d.d., improving its market position in Slovenia and supporting the Bank of Slovenia in maintaining financial stability of the Slovenian banking sector

Pursuant to the provisions of the Rules of the Stock Exchange, Article 17 of the Regulation (EU) No. 596/2014, and Article 130 of the Market in Financial Instruments Act (ZTFI-1), Nova Ljubljanska banka, d.d., Ljubljana with registered office at Trg republike 2, 1000 Ljubljana, hereby publishes the following notice:

On 1 March 2022, the Bank of Slovenia issued a decision, in accordance with Article 116 of the Resolution and Winding-Up of Banks Act (Zakon o reševanju in prisilnem prenehanju bank - ZRPPB-1), to issue a resolution tool in respect of the sale of 100% shares issued by Sberbank banka d.d.

The transaction presents next step in banking sector consolidation in Slovenia and is fully aligned with the strategic ambitions of NLB to improve its market positions in each of its core markets in a controlled, measured and value accretive manner. The transaction will at the same time provide certainty for Sberbank's customers and strengthen the stability of the Slovenian banking sector.

"With our strong capital and liquidity position and following our remarkable results of EUR 236.4 million in profit in 2021, NLB was able to quickly respond to the Bank of Slovenia's initiative to transfer the ownership stake and consequently assets, liabilities, and clients of Sberbank d.d. to NLB Group, thus providing a quick and efficient solution to all Sberbank's clients who found themselves in a difficult position as a result of the introduced measures," explained NLB's CEO Blaž Brodnjak. "By completing this transaction, Sberbank Slovenia will get a strong and committed owner, who will, with its capital and professional background, ensure uninterrupted business for clients. There is, therefore, no need for them to worry about any of their deposits, other assets or transactions in these tense and uncertain times anymore," he emphasized.

Transaction to complement NLB's existing franchise in Slovenia

With total assets of EUR 1.8 billion at the end of the year 2020, Sberbank had a market share of app. 4% of the banking assets in Slovenia. Customer loans amounted to EUR 1.2 billion at the end of 2020. The transaction will complement NLB's existing franchise in Slovenia, particularly in the corporate and SME segment which accounted for app. 55% of Sberbank's net customer loans at the end of 2020.   

The transaction will add approximately EUR 1.0 billion of risk weighted assets to NLB Group's existing EUR 12.7 billion of risk weighted assets at the end of 2021. NLB Group will at all times keep exceeding its Overall Capital Requirement and Pillar 2 Guidance (from 1 March 2022 onwards at 15.10% on consolidated basis).

"In recent years, NLB and the banks in our group have been driving banking and digital trends, improving experience for our clients, while strongly focusing on the sustainability agenda in our home region. All that while continuously ensuring the stability of business operations and banking systems, as well as justifying the expectations of our stakeholders," added NLB's CEO. "Furthermore, we have indicated several times that we will continue to successfully grow organically, but we do not rule out the possibility of inorganic growth whether on the Slovenian or other markets in the region, thus becoming a true regional champion."

NLB plans to organize a live webcast with Management Board on Friday, 4th March 2022, at 11:00 CET/10:00 GMT. Login details will be provided in a separate announcement.

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NLB d.d., Ljubljana