NLB, d. d., Ljubljana
57th Supervisory Board Meeting: NLB Group posts EUR 94.3 million net profit in 6 months
Today, on 6 September, the Supervisory Board of NLB d.d. met at its 57th meeting and discussed NLB Group operations in the first six months of this year. In the first half year, the Group generated EUR 94.3 million net profit. Subsidiary banks in SE Europe continued to perform well, contributing 38.4% to the Group’s profit before tax. For more details on NLB Group operations in H1, please refer to the NLB Group Interim Report, which was published today. On Monday, 9 September, at 9:00 am CET all interested stakeholders can follow a webcast presentation of financial results live on this link. After the webcast, the Management Board will commence a non-deal roadshow which will take place in UK and US.
Profit before impairments and provisions stood at EUR 116.0 million and increased by 12.5% YoY.
Total net operating income amounted to EUR 257.4 million, representing a 6% increase YoY (H1 2018: EUR 243 million). The increase is based on higher net interest income (5% increase YoY), and income from net fees and commissions (3% increase YoY). Net interest income has grown in all banks of the Group as a result of loan volume growth and lower interest expenses. Net loans to customers were 2% higher than at the end of 2018, while deposits went up by 3%. The growth is mainly due to retail deposits, which increased by EUR 313.3 million or 4% in the first six months. The net interest margin remained stable and the cost of risk was 0 bps.
The trend of improved credit portfolio quality continued. The NPL share dropped to 6.0%, while the internationally comparable NPE ratio dropped to 4.1% (in line with the EBA guidelines), which is very close to the mid-term target (4%). Total capital ratio for the NLB Group at the end of June reached 16.5%, which is above the regulatory requirements. Therefore, NLB Group is on a good path toward meeting its mid-term financial targets despite the increasingly challenging economic environment of low interest rates.
At its meeting, the Supervisory Board also took note of the key elements of the new NLB Group Strategy and gave a green light to establishing a new leasing company. As such, with the successfully completed privatization of NLB, certain commitments ceased to apply, amongst them the ban on leasing activities. By that, NLB will be complementing its product range with state-of-the-art leasing solutions focusing on mobility in Slovenia and subsequently in the region.
The Supervisory Board also approved convocation of the General Shareholders' Meeting of NLB d.d., at which it will, together with the Management Board, propose amendments to the existing remuneration system for members of the Supervisory Board after the Bank's privatisation. More information will be available in the convocation of the General Meeting, published by the Bank on Monday, 9 September.
Members of the Supervisory Board also took note of the reports for Q2 submitted by the Bank’s experts and granted consent to transactions requiring Supervisory Board approval.
This announcement will be available on the Bank's website (www.nlb.si) as of 6.9.2019.