Slovenia's largest banking group NLB posted €550.7 million in net profit in 2023, up 23% on the year before. Net operating income was up by 37% to €1.09 billion.

Profit before impairments and provisions increased by 75% to €591.4 million, according to the annual report released by the bank on 22 February.

Net interest revenue was up by 65% to €833.3 million, mainly as a result of loans to customers and balances at banks and central banks, while net non-interest revenue decreased by 11% to €260 million.

In entire 2023, the group released net impairments and provisions for credit risks in the amount of €11.8 million, the loan portfolio is diversified, and its quality remains stable and robust, the bank said.

Credit activity was moderate, but stable, and compared to 2022, the group increased gross loans by 5% or € 666.2 million. The growth is attributed the most to loans to households, the structure of which is still dominated by housing loans.

CEO Blaž Brodnjak said the strong results would allow to significantly increase in this year's dividend payout, "while at the same time retaining stable organic and/or M&A driven growth capacity".

The bank plans to propose a €220 million dividend payout in 2024, which to be paid out in two stages. The figure is twice the amount paid out in 2023.

The proposed dividend amounts to €11 per share, with the state as the largest shareholder expected to receive €55 million, according to the bank's calculations.

On 31 December 2023, the total capital ratio (TCR) of the group was 20.3% percent, and the CET1 ratio was 16.4%, up by 1.3 percentage points on an annual basis.

The higher total capital adequacy is a result of a larger amount of capital, which offset the increase in risk-adjusted assets, the bank said.

The forecast for 2024 includes a reasonable degree of caution, but despite this, the group's recurring revenue is expected to exceed €1.1 billion. Revenue in 2025 is expected to reach €1.2 billion.

The group is preparing a new 2030 business strategy, which is due to be unveiled in May. Brodnjak said the group was "building solid foundations that enable further growth in all current markets, and perhaps even some new ones".