Half Year 2024 Nova Ljubljanska Banka dd Ljubljana Earnings Call Transcript
Key Points
- Nova Ljubljanska banka dd Ljubljana (FRA:N1V2) reported strong mid-single-digit growth in both retail and corporate sectors, indicating robust economic activity in the region.
- The bank successfully issued several notes, strengthening its capital base and meeting M&A requirements, which supports further growth.
- The acquisition of Summit Leasing is expected to close soon, enhancing the bank's position in the leasing market in Slovenia and expanding into Croatia.
- The bank has revised its return on equity guidance upwards from around 15% to higher than 15%, reflecting strong financial performance.
- The macroeconomic environment in the region is favorable, with low unemployment rates and healthy corporate cash flows, supporting future growth prospects.
- There is a subdued demand for corporate lending, which the bank is addressing through high sales team activity.
- The cost dynamic shows a lag from the high inflation environment experienced last year, impacting the cost base.
- The introduction of a balance sheet tax in Slovenia adds a burden to the cost side, estimated at around EUR30 million annually.
- The bank's net interest income (NII) has peaked, and there is a deliberate investment in NII stabilization, which may impact short-term revenue.
- The acquisition of Addiko Group is still pending, with complexities and competition from other bidders, creating uncertainty around the deal's success.
Ladies and gentlemen, thank you for standing by. I'm Constantino, your Chorus Call operator. Welcome, and thank you for joining the NLB Group conference call and live webcast to present and discuss the second quarter 2020 and first half 2024 financial results.
(Operator Instructions) At this time, I would like to turn the conference over to Mr. Blaz Brodnjak, CEO; Mr. Andreas Burkhardt, CRO; and Mr. Archibald Kremser, CFO. Mr. Brodnjak, you may now proceed.
Thank you very much. Welcome, everyone. Good afternoon to the regular performance call. Let me first -- I'll drive your attention to the disclaimer and then move to actually what we believe has been another very strong quarter, delivering as per all dimensions of what we have been guiding for. What is especially encouraging is that we have been growing the business.
So of course, there have been always questions about the sensitivity on -- upon the net interest income. But of course, we have an interest in various measures among which one of the most important ones have been actual
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