NLB Group posts EUR 94.3 million net profit in 6 months
6 September 2019
Today, on 6 September, the Supervisory Board of NLB d.d. met at its 57th meeting and discussed NLB Group operations in the first six months of this year. In the first half year, the Group generated EUR 94.3 million net profit. Subsidiary banks in SE Europe continued to perform well, contributing 38.4% to the Group’s profit before tax. For more details on NLB Group operations in H1, please refer to the NLB Group Interim Report, which was published today. On Monday, 9 September, at 9:00 am CET all interested stakeholders can follow a webcast presentation of financial results live on this link. After the webcast, the Management Board will commence a non-deal roadshow which will take place in UK and US.
Profit before impairments and provisions stood at EUR 116.0 million and increased by 12.5% YoY.
Total net operating income amounted to EUR 257.4 million, representing a 6% increase YoY (H1 2018: EUR 243 million). The increase is based on higher net interest income (5% increase YoY), and income from net fees and commissions (3% increase YoY). Net interest income has grown in all banks of the Group as a result of loan volume growth and lower interest expenses. Net loans to customers were 2% higher than at the end of 2018, while deposits went up by 3%. The growth is mainly due to retail deposits, which increased by EUR 313.3 million or 4% in the first six months. The net interest margin remained stable and the cost of risk was 0 bps.
The trend of improved credit portfolio quality continued. The NPL share dropped to 6.0%, while the internationally comparable NPE ratio dropped to 4.1% (in line with the EBA guidelines), which is very close to the mid-term target (4%). Total capital ratio for the NLB Group at the end of June reached 16.5%, which is above the regulatory requirements. Therefore, NLB Group is on a good path toward meeting its mid-term financial targets despite the increasingly challenging economic environment of low interest rates.
At its meeting, the Supervisory Board also took note of the key elements of the new NLB Group Strategy and gave a green light to establishing a new leasing company. As such, with the successfully completed privatization of NLB, certain commitments ceased to apply, amongst them the ban on leasing activities. By that, NLB will be complementing its product range with state-of-the-art leasing solutions focusing on mobility in Slovenia and subsequently in the region.
The Supervisory Board also approved convocation of the General Shareholders' Meeting of NLB d.d., at which it will, together with the Management Board, propose amendments to the existing remuneration system for members of the Supervisory Board after the Bank's privatisation. More information will be available in the convocation of the General Meeting, published by the Bank on Monday, 9 September.
Members of the Supervisory Board also took note of the reports for Q2 submitted by the Bank’s experts and granted consent to transactions requiring Supervisory Board approval.
NLB Supervisory Board
NLB Group in the first half year
The right solution, at the right time, in the right place
We are focusing on providing the best user experience and setting new trends with our innovative solutions. We want to offer our clients the right solutions, at the right time, and in the right place.
- Klikin mobile bank is the go to platform for 1/3 of the bank’s clients. The number of its users increased by 64% YoY.
- Quick loan for private individuals was introduced at the NLB Group level in April and was well received by our clients.
- Video call 24/7: NLB is the only bank in Slovenia which offers video call service 24/7 (and has been offering it to its clients for more than two years). Its use went up by 134% YoY.
- Online application NLB Purchase of Receivables enables simpler, faster, paperless, more transparent and cost efficient management of outstanding receivables that the clients want to sell to the bank.
- Business forum Kopaonik: as a general sponsor we supported the business forum attended by around 1300 participants – businessmen and representatives of government institutions and non-governmental organisations.
We are closely connected with the environment we live and operate in
NLB Group is no mere financial Group. In addition to good business performance and financial results that contribute to economic development of the region, we also wish to shape and improve the social threads of the environment we live in and to contribute to a higher quality of life of all its people.
Contributing to equal inclusion of the deaf into everyday life:
- Every Wednesday afternoon sign language interpreter is there for the deaf to make a video call and perform their basic bank services or consult a bank officer on their own.
- By supporting the project Theatre Interpreter we helped the deaf enter the world of theatre art. Over 80 deaf people, including children, came to see four performances interpreted into sign language.
Promoting entrepreneurship and sustainable development
- For the eighth consecutive year, NLB Banka Beograd rewarded the best projects in the field of organic food production and processing as part of its NLB Organic campaign. This project supports family entrepreneurship and sustainable development, as well as taking care of the environment and good health of the citizens.
- NLB Banka Sarajevo supported a new cycle of lectures within the Entrepreneurship Academy.
Sport of Youth: throughout Slovenia we encourage young recreational athletes to exercise and lead a healthy lifestyle. 38 local clubs in the project have engaged over 3000 children from 31 Slovene municipalities.