Q4 2025 Nova Ljubljanska banka dd Ljubljana Earnings Call Transcript
Key Points
- Nova Ljubljanska banka dd Ljubljana (FRA:N1V2) reported strong loan growth across all geographies and segments, effectively offsetting the negative impact of the current rate environment.
- The bank maintained a solid cost-to-income ratio below guidance, indicating strong operational efficiency.
- Net operating income has stabilized and shown growth on both a quarterly and annual basis, with margins stabilizing over the past six months.
- The bank successfully issued a Tier 2, Tier 1, and AT1 instrument, raising significant capital and demonstrating strong capital market access.
- Nova Ljubljanska banka dd Ljubljana continues to innovate with new digital services, receiving recognition for its advanced digital value proposition in the Slovenian market.
- The industrial sector, particularly steel processing and automotive, has shown deterioration, leading to increased Stage 3 loans and provisioning.
- Despite strong loan growth, the bank faces challenges in maintaining profitability due to high wage inflation and increased minimum wages in Slovenia.
- The cost of risk guidance remains high, with potential for further single-case surprises in 2026, reflecting a volatile economic environment.
- The bank's CET1 ratio is stagnating due to strong growth eating into the capital base, limiting room for larger M&A activities.
- The effective tax rate is expected to converge towards 15% by 2029, potentially impacting future profitability.
Ladies and gentlemen, good afternoon and welcome. I'm Lily, your webcast operator for today, and I would like to thank you for joining the NLB Group's live webcast, where we would like to present and discuss with you our performance in 2025. Our results will be presented by Mr. BlažBrodnjak, CEO, Mr. Archibald Kremser, CFO. And Mr. Andreas Burkhardt, CRO.
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