Nova Ljubljanska Banka,
d.d.
NLB
Group Ends 2023 on Strong Footing, Hikes 2024 Dividends to EUR 220
million and Continues to Act Proactively and Responsibly Towards
All Stakeholders
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: NLB
Group performed strongly in the full year
2023 with EUR 550.7 million of result
after tax. Yet at the same time the Group continued to take
responsible actions and with its
strategic planning and business decisions laid foundations for stable,
growth oriented and profitable operations
also in the years to come. In addition, its
donations and sponsorship support to humanitarian, health,
cultural, sport and other pillars of society continued to create
better footprints and helped improving the quality of life
in our home region.
You may find key highlights of the
NLB Groups' business operations in the Fourth Quarter 2023 and Full
Year 2023, Investor presentation and NLB Group Factsheet on the
links below.
•
Key Highlights in the Fourth Quarter 2023 and Full Year
2023
•
Investor presentation
•
NLB Group Factsheet
The Group's dedication to the social
responsibility was especially evident during the August floods in
Slovenia: to eliminate the consequences of which
bank donated a
total of EUR 9.5 million. From that
amount, EUR 4 million were allocated to the 20 worst-affected
municipalities for sustainable reconstruction and investments; a
solidarity fund of EUR 0.5 million was established for dozens NLB
employees affected by the disaster; and EUR 5 million were
allocated to the budget of the Republic of Slovenia, earmarked to
addressing the consequences of the floods. Furthermore, under the
recently adopted reconstruction law, which also imposes a
tax on banks'
total assets starting with January
1st, 2024, NLB will be paying an additional balance sheet tax in
the amount exceeding EUR 30 million annually for
the next five years. Combining
donations and tax on total assets, NLB will contribute over EUR 170
million for the recovery after natural disasters.
Besides creating value for our
shareholders and enhancing banking
services, it is in 2023 relevant to highlight the legal and operational
merger of N Banka, completed in
September. The process was accomplished within the envisaged
timeframe and budget as yet another indication of the Group's
proven capacity to acquire and seamlessly consolidate and integrate
businesses. Another significant milestone for the Group was
the signing of sale and purchase agreement for Summit Leasing
Slovenia in November. Subject to
regulatory clearance, this transaction will help NLB Group
accelerate its ambitions in the strategically important leasing
segment and build on the ambition of the Group to add value for the
shareholders and provide the clients with additional services and
solutions.
In this once more breakthrough year
the Group also achieved significant progress at its ESG
endeavours. At the end of 2023,
Sustainalytics recognised notable improvement and awarded NLB a
rating of 16.0 (an improvement by 1.7 points), ranking NLB among
the top 13 per cent of banks, assessed by the firm.
"Strong business results of NLB Group
in 2023 call for a positive reflection on the one hand, and an
awareness of even greater responsibility of the hard-working team
on the other. They enable us to significantly increase our dividend
payments to 40% pay-out ratio of
previous years' profit after tax, which in 2024 translates to EUR 220
million in dividends. This
represents a 100% increase from dividend payments made in 2023 or
more than 75% of the so far's guidance for the cumulative payment
until the end of 2025, while at the same time retaining stable
organic and/or M&A driven growth capacity," emphasized NLB's
CEO Blaž
Brodnjak upon the publications of
the results.
As he explained further, NLB Group
has been laying very solid foundations for further value accretive
growth of the Group in all of existing and potentially some new
regional markets. "Details of the new mid-term business strategy of
NLB Group will be disclosed at the upcoming Investor Day
on May 9th in Ljubljana," he
added.
On behalf of the Supervisory Board,
its Chairman Primož Karpe also expressed
satisfaction with the successful operations of NLB Group in the
past year. "The Supervisory Board, however, is particularly pleased
with the Groups' understanding of its role in the economies and
societies of the region and the proactive approach it has taken
when addressing its challenges and future. The Group is aware of
the constant need to invest in talents, underlying future-proof
technology, the business environment and identifying future growth
opportunities, being organic or inorganic, and is taking action
today to be stable and prosperous tomorrow."
Invitation to the Earnings Call
We kindly invite all interested
stakeholders to the Fourth Quarter 2023 and Full Year 2023
Financial Results Earnings Call, hosted by the Management
Board of NLB, that will take place on Thursday,
22nd February, 2024, at 16:00 CET/15.00 GMT and will be
available here: https://www.nlb.si/ir-events.
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 the web app, or you may simply
send them to the email address IR@nlb.si.
Investor Relations
