Ljubljana - Slovenia's largest banking group, NLB, reported on Thursday EUR 287 million in profit after tax for the first half of 2022, a 105% increase year-on-year. The growth was mainly driven by positive effects related to the acquisition of N Banka, formerly Sberbank. The profit of the core bank NLB fell from EUR 77.1 million to EUR 66.9 million.

NLB Group's operating profit rose by 7% to EUR 358.1 million in the first six months, with N Banka, part of NLB since March this year as a result of Russia's attack on Ukraine, contributing EUR 14 million to the result.

"The recurring performance, excluding N Banka and other significant non-recurring items, was impressive with 25% year-on-year growth in pre-provision income," wrote the NLB management led by Blaž Brodnjak.

Net interest income totalled EUR 226.4 million, of which EUR 9.9 million was contributed by N Banka. Net non-interest income reached EUR 131.7 million, of which EUR 4.1 million was contribution by N Banka. Total costs amounted to EUR 218.7 million, of which EUR 10.4 million fell to the formerly Russian bank.

Impairments and provisions for credit risk were established in the amount of EUR 2.4 million. Additional new impairments and provisions, including 12-month expected credit losses recognised at the acquisition date for the performing portfolio of N Banka were almost fully compensated by the positive effects from a successful collection of previously written-off receivables.

Other impairments and provisions were established in the amount of EUR 5.3 million, of which EUR 4.6 million was for the reorganisation in the Belgrade-based NLB Komercijalna banka, NLB explained.

The group's total assets increased to EUR 22.3 million by the end of June, which means a 5% rise since the start of the year.

"Many important milestones marked the first six months of 2022. First, the acquisition of N Banka whose integration process is currently in full swing and will be completed in spring 2023, and the merger of NLB Banka Beograd and Komercijalna Banka Beograd in NLB Komercijalna Banka, which was fully completed by the end of April," the report moreover says.