Historical Success

NLB Group Achieves Record Business Results in 2022

The Adriatic Team

Despite the precarious circumstances, the shadow of war in Europe, the resulting energy crisis, and the economic slowdown, 2022 was the best year in the history of NLB Group, the bank announced.

The Group reached many important business milestones, and through responsible environmental and societal actions once again confirmed its commitment and its contribution to a better quality of life in South-eastern Europe, which they call their home region.

»These actions for example include both our commitment and adoption of policies, such as United Nations Net Zero Banking Alliance or NLB Group Net Zero Strategy, as well as tangible actions of our banking members and our employees, for instance offering new sustainable products, reducing paper consumption thereby saving 866 trees or planting more than 6000 new trees throughout the region. We are proud that our efforts and our progress in the field of sustainability were confirmed by our first ESG rating – Sustainalytics rated NLB with an ESG Risk Rating of 17.7 and a low risk of experiencing material financial impacts from ESG factors,« the bank explained at the media event held at the of February.

In 2022, NLB Group’s result after tax amounted to EUR 446.9 million, with the acquisition of N Banka in March significantly influencing the full-year business results of the Group. Excluding the total contribution from N Banka, net profit grew by 11% and reached EUR 262.8 million. We ended the year with a strong capital position, as the total capital ratio of 19.2% gives us confidence and optionalities to pursue future growth ambitions. We will continue to create added value for our shareholders, live up to expectations of our clients, employees, and the public, as well as seize all opportunities in front of us.

Highest profit in history

»While the past year has been extremely turbulent for Europe, it presented yet another opportunity for banks in NLB Group to prove their systemically important role in society,« emphasized NLB’s CEO Blaž Brodnjak as the unaudited 2022 results were published.

He explained: »Following the uncertainties, challenges, and consequences brought on by the war in Ukraine, all our member banks have contributed their share to the stabilisation of the banking industry and regional economy. Later on, the Group’s banks in various markets also stepped up in times of the instability of the energy sectors and by providing much-needed liquidity contributed to the successful mastering of this challenge, as well. All this came on top of the Group’s regular business objectives of growth in all key segments. It is therefore not without pride that we emphasize: in 2022, NLB has generated the highest profit after tax in history of any Slovenia-based business.«

New Opportunities for growth

The Supervisory Board is also pleased with the performance of NLB Group in the past year, with its Chairman Primož Karpe highlighting new opportunities for creating added value the Group addressed in 2022. »We estimate that, on the one hand, new opportunities for growth come from additional leveraging of synergies within the group on the back of an increased investments into digitalisation, and on the other hand by the expansion of certain activities. An example of the first is the NLB DigIT competence centre the Group established in Belgrade in order to keep and build on its digital leadership position in the region; and an example of the second is an expansion of leasing activities to two additional markets,« he explained.

»Such business decisions are made strategically and based on a strict adherence to the principles of risk and profitability, all with the aim of creating additional value for stakeholders,« Karpe added.