February 23, 2023

NLB Group Achieves Record Business Results in 2022

Pursuant to the Rules of the Ljubljana Stock Exchange and Article 17 of the Regulation (EU) No 596/2014, NLB d.d., Trg republike 2, 1000 Ljubljana, announces:

Despite the precarious circumstances, the shadow of war in Europe, the resulting energy crisis, and the economic slowdown, 2022 was the best year in the history of NLB Group. The Group reached many important business milestones, and through responsible environmental and societal actions once again confirmed its commitment and its contribution to a better quality of life in South-eastern Europe, our home region.

These actions for example include both our commitment and adoption of policies, such as United Nations Net Zero Banking Alliance or NLB Group Net Zero Strategy, as well as tangible actions of our banking members and our employees, for instance offering new sustainable products, reducing paper consumption thereby saving 866 trees or planting more than 6000 new trees throughout the region. We are proud that our efforts and our progress in the field of sustainability were confirmed by our first ESG rating - Sustainalytics rated NLB with an ESG Risk Rating of 17.7 and a low risk of experiencing material financial impacts from ESG factors.

In 2022, NLB Group's result after tax amounted to EUR 446.9 million, with the acquisition of N Banka in March significantly influencing the full-year business results of the Group. Excluding the total contribution from N Banka, net profit grew by 11% and reached EUR 262.8 million. We ended the year with a strong capital position, as the total capital ratio of 19.2% gives us confidence and optionalities to pursue future growth ambitions. We will continue to create added value for our shareholders, live up to expectations of our clients, employees, and the public, as well as seize all opportunities in front of us.

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

Key Highlights in 2022

Investor presentation

"While the past year has been extremely turbulent for Europe, it presented yet another opportunity for banks in NLB Group to prove their systemically important role in society," emphasized NLB's CEO Blaž Brodnjak as the unaudited 2022 results were published. He explained: "Following the uncertainties, challenges, and consequences brought on by the war in Ukraine, all our member banks have contributed their share to the stabilisation of the banking industry and regional economy. Later on, the Group's banks in various markets also stepped up in times of the instability of the energy sectors and by providing much-needed liquidity contributed to the successful mastering of this challenge, as well. All this came on top of the Group's regular business objectives of growth in all key segments. It is therefore not without pride that we emphasize: in 2022, NLB has generated the highest profit after tax in history of any Slovenia-based business." 

The Supervisory Board is also pleased with the performance of NLB Group in the past year, with its Chairman Primož Karpe highlighting new opportunities for creating added value the Group addressed in 2022. "We estimate that, on the one hand, new opportunities for growth come from additional leveraging of synergies within the group on the back of an increased investments into digitalisation, and on the other hand by the expansion of certain activities. An example of the first is the NLB DigIT competence centre the Group established in Belgrade in order to keep and build on its digital leadership position in the region; and an example of the second is an expansion of leasing activities to two additional markets," he explained. "Such business decisions are made strategically and based on a strict adherence to the principles of risk and profitability, all with the aim of creating additional value for stakeholders," he added.

Kindly invited to join webcast presentation

We kindly invite all interested stakeholders to the presentation of the NLB Group 2022 Unaudited business results. The webcast hosted by the Management Board of NLB will take place on Thursday, February 23, 2023, at 16:00 CET/15.00 GMT and will be available here: https://www.nlb.si/ir-events. We invite you to register upfront.

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 [email protected].

Investor Relations,

NLB d.d., Ljubljana