Nova Ljubljanska banka dd Ljubljana (LSE:NLB)

Q4 2024 Nova Ljubljanska banka dd Ljubljana Earnings Call Transcript

Feb 20, 2025 / 03:00PM GMT

Release Date Price: €28.2 (-3.42%)

Transcript

Key Points

Positve

Nova Ljubljanska banka dd Ljubljana (FRA:N1V2) reported significant growth in both Retail and Corporate sectors across all geographies, supporting their strategic goals.
The bank achieved a 10% increase in pre-provision profit and a EUR30 million rise in profit before tax, indicating strong financial performance.
The company maintained a stable net interest income (NII) growth of 12% despite a declining interest rate environment.
The bank's loan growth was robust, supported by solid macroeconomic performance in key markets like Serbia and Slovenia.
Nova Ljubljanska banka dd Ljubljana (FRA:N1V2) announced a dividend payout increase to EUR257 million, offering a 9% gross dividend yield, which is attractive to shareholders.

Negative

The bank faced challenges in specific industries such as steel processing and automotive, leading to an increase in cost of risk.
There was a notable uptick in costs, partly due to wage inflation and investments in strategic initiatives, resulting in a 9% normalized cost growth.
The introduction of a balance sheet tax by the Republic of Slovenia impacted the bank's financials.
The bank's effective tax rate increased to 30%, influenced by the new tax on Slovenian assets.
The bank's guidance for 2025 remains conservative, with revenue projections unchanged at EUR1.2 billion, reflecting uncertainty in the interest rate environment.

Operator

(video playing)

Ladies and gentlemen, thank you for standing by. I am Nina, your Chorus Call operator. Welcome, and thank you for joining the NLB Group conference call and live webcast to present and discuss the fourth-quarter and full-year 2024 annualized financial results.

At this time, I would like to turn the conference over to Mr. Blaz Brodnjak, CEO; Mr. Archibald Kremser, CFO; Mr. Andreas Burkhardt, CRO. Mr. Brodnjak, you may now proceed.

Blaz Brodnjak

Nova Ljubljanska Banka dd Ljubljana - Chairman of the Management Board, Chief Executive Officer

Thank you very much. Good afternoon. Welcome, everyone, to our regular performance call, this time, reflecting on '24. Let me draw your attention first to the standard disclaimer and then dig directly into what we claim is another very strong year. We have seen significant growth, which is for supporting our strategy we communicated last year. It is based on growth and of course, in the interest rate declining environment. This is essential to offset these otherwise negative effects.

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