Today, on 27 May, the Supervisory Board of NLB met at its 34^th regular meeting, focusing on the operating results of NLB Group in the first quarter of this year. The Supervisory Board welcomed the trend of continuous improvement of operations. For the ninth consecutive quarter, results of NLB Group have been positive and this is, according to the Supervisory Board members, the key element for potential investors when evaluating the bank’s performance. NLB Group generated profit after tax of EUR 52.1 million in Q1, which is EUR 27.1 million more than the profit generated in the same period last year. Apart from the mother bank all strategic members of NLB Group operated with profit. This also shows NLB’s successful implementation of its business and growth strategy outside Slovenia. The Supervisory Board adopted a decision to propose to the owner payment of dividends for the first time after 2008, thereby starting to return the investment to the bank.

Detailed information on the operations of NLB Group is available in the Interim Report – Q1 2016 and in the investor presentation, which were published today, on 27 May, in line with the financial calendar. 

NLB Group has successfully continued with activities aimed at improving the asset quality. Gross non-performing loans were reduced by EUR 70.8 million in Q1, thereby reducing the share of non-performing loans in total loans from 19.3% to 18.4% compared to the year-end 2015. In this respect the Supervisory Board members welcomed the bank’s active approach in the area of non-performing loans management. They instructed the bank to continue with the reduction of the non-performing loans while making a thorough expert analysis and strictly taking into account all economic effects and scenarios. Members of the Supervisory Board also welcomed growth of loans both in retail as well as corporate segments in all strategic markets of NLB Group.

The Supervisory Board acknowledged reports of the Committees of the Supervisory Board and issued approval to certain Bank’s operations. The Supervisory Board also discussed the material for the regular Annual General Meeting of Shareholders – allocation of distributable profit for 2015 and proposal for dividend pay-out. For the first time after 2008, the bank will propose dividend pay-out for 2015, forecasted in the amount of EUR 43.9 million, which is the highest possible amount considering relevant legal and other restrictions currently in place. In continuation the Supervisory Board also acknowledged the Q1 reports of Internal Audit, Compliance and Integrity.  

Members of the Supervisory Board were informed with the procedure for appointment of a new president of the Management Board of NLB, which is in process as planned. Based on a thorough examination of received applications and interviews with short-listed candidates conducted by the Nominations Committee of the Supervisory Board, a detailed discussion took place of the candidates and their operational vision of NLB management. Expectations for the future president of the Management Board are continuation of positive results in all strategic markets, as well as reduction of non-performing loans. New president of the Management Board is expected to be appointed within one month. 

In order to achieve well balanced operations of the Management board, the Supervisory Board also agreed to appoint, as soon as possible, additional member (COO) with extensive international experience.

This announcement will be available on the Bank's website (www.nlb.si) as of 27 May, 2016.