Yahoo Finance

• Pre-Provision Profit Growth: Increased by EUR50 million, nearly 10% year-on-year.

• Profit Before Tax: Increased by approximately EUR30 million.

• Cost of Risk: 14 basis points, within guidance.

• Return on Equity (ROE): Maintained at a solid level.

• Net Interest Income (NII): Grew by 12% despite a declining interest rate environment.

• Cost-to-Income Ratio: Approximately 45.7%, slightly better than the previous year.

• Loan Growth: Strong growth across Retail and Corporate segments.

• Dividend Payout: EUR220 million paid out, with plans for increased payouts.

• Capital Ratios: Total capital ratio close to 19%, Tier 1 around 15%, CET1 in excess of 15%.

• Non-Interest Income: Solid growth, particularly in asset management.

• Normalized Cost Growth: 9%, adjusted for non-recurring items.

• Leasing Business Contribution: Expected EUR30 million positive impact.

• Warning! GuruFocus has detected 7 Warning Sign with FRA:N1V2.

• High Yield Dividend Stocks in Gurus' Portfolio

• This Powerful Chart Made Peter Lynch 29% A Year For 13 Years

• How to calculate the intrinsic value of a stock?

Release Date: February 20, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• 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 Points

• 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.