Nova Ljubljanska banka dd Ljubljana
(FRA:N1V2)
€
43.4
+0.20 (+0.46%)
Market Cap: 4.46 Bil
Enterprise Value: 3.02 Bil
PE Ratio: 9.25
PB Ratio: 1.15
GF Score: 52/100 
Q2 2026 Nova Ljubljanska banka dd Ljubljana Earnings Call Transcript
Aug 06, 2026 / 02:00PM GMT
Release Date Price:
€44.4
(-0.45%)
Key Points
Positve
- Nova Ljubljanska banka dd Ljubljana (STU:N1V2) reported robust loan growth of 12% year-on-year, with year-to-date growth of 5%, driven by strong demand across all segments and geographies.
- The bank's net interest income (NII) grew 5% year-on-year and 6% quarter-on-quarter, with net interest margin (NIM) stabilizing and slightly increasing, supported by a favorable rate environment.
- Fee and commission income grew 10% year-on-year, driven by strong performance in asset management, payments, and bank assurance, with a market-leading 44% share in Slovenia's asset management business.
- Cost discipline remained strong, with costs up only 3% year-on-year despite significant investments in customer experience, keeping the cost-income ratio under control.
- Asset quality remained stable, with cost of risk at 32 basis points, well within the 30-50 bps guidance, and the bank expects to be in the lower half of this range for the full year.
- The bank's capital position is robust, with a fortress balance sheet, high liquidity, and a solid leverage ratio, providing dry powder for potential M&A opportunities while maintaining a 55% dividend payout, with plans to increase to 60%.
- The bank received a positive outlook from Standard & Poor's following Moody's upgrade to A rating, reflecting improved creditworthiness and funding costs.
- The bank successfully paid the first half of the dividend in June and expects to distribute the second half by year-end, offering an attractive 6% dividend yield at current prices.
- Management expressed confidence in achieving 2027 targets organically, with 80-85% of 2030 targets expected to be met organically, supported by strong recurring pre-provision profit growth.
- The bank is exploring new opportunities in asset management and leasing, including potential expansion into Croatia, and has launched innovative products like a real estate fund.
Negative
- Nova Ljubljanska banka dd Ljubljana (STU:N1V2) failed in its attempt to acquire Addiko Group, which could limit near-term inorganic growth opportunities.
- Net profit after tax was below last year's levels, partly due to one-off items and higher provisioning, though recurring pre-provision profit was up.
- Deposit growth was muted at 2% year-to-date, with pressure on margins in certain markets like Serbia, Kosovo, and Montenegro due to tighter liquidity and higher funding costs.
- Corporate deposits in Slovenia declined year-to-date, reflecting a competitive market and the bank's disciplined approach to not overpay for deposits.
- The bank faces margin compression in some SEE markets, particularly Serbia and Bosnia, due to rising deposit costs and a shift to more expensive term deposits.
- There are ongoing legal issues related to Swiss franc loans in Slovenia, with adverse court rulings potentially leading to higher provisions in the future.
- The bank's loan growth in Q2 was slower than some peers, as management prioritizes risk-adjusted pricing and self-funding over volume growth, which may limit market share gains.
- The bank's cost of risk is expected to be in the lower half of the 30-50 bps guidance, but there are some inflows from corporate Slovenia and new cases that could pressure provisions.
- The bank's capital ratios remained flat quarter-on-quarter despite growth, with no relief measures in place yet, and SRTs are not expected until mid-2027.
- Management noted that the Croatian market remains closed to the bank due to political issues, limiting expansion opportunities in a key neighboring market.
Operator
Good afternoon, ladies and gentlemen, and welcome. I'm Lily, your webcast operator.
Thank you for tuning in to our live session today where we will review our half-year performance. The results will be presented by Blaz Brodnjak, CEO, Archibald Kremser, CFO, and Andreas Burkhardt, CRO. (Operator Instructions). And now it's my pleasure to hand the floor over to our CEO, Blaz Brodnjak.
Blaz Brodnjak
Nova Ljubljanska banka dd Ljubljana - Chairman of the Management Board, Chief Executive Officer, Chief Marketing Officer
Good afternoon and welcome everyone. I'm glad to be able to address you again. This time about the half year results of 2026. I'm happy to report that the first half of the dividend has been paid out in June as planned and looking forward to the second half to be distributed still this year.
Following the upgrade into the A rating which we celebrated at last webcast, the Standard & Poor's followed Moody's by the positive outlook. So, there's another improvement in this respect in terms of recognition of our performance and
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