Net Profit of NLB Skupina Group Grows by 70%
In the first half of 2017, the Group’s net profit amounted to 117.9 million euros. This is 48.4 million euros (70%) more than in the same period last year.
Banks-members of the NLB Skupina Group, working in strategic foreign markets, generated a total profit of 58.8 million euros. This is 71% more than in the same period of 2016.
Return on equity (ROE after taxes) rose to 15.5% from the last year’s figure of 9.4%. The profitability ratio of the total and core capitals (CET1) amounted to 16.5%. According to the representatives of NLB Skupina, this figure “significantly exceeds the requirements of the regulator and demonstrates the liquidity of the Group’s capital.”
Thanks to the positive impact of the macroeconomic environment, the demand for loans in Slovenia and abroad increased, especially in the retail-banking sector. In the country, the lending rate of the population increased by 3% as compared to the end of 2016.
NLB retained its leading position in the Slovenian market. The market share of loans to the population is 23.4%, and deposits – 30.4%. A record semi-annual growth in the portfolio of housing loans is registered. In this segment of the Group’s work, 52% more contracts were concluded than in the same period last year. The market share in corporate loans remains stable at 22.3%. At the same time, higher growth of operations is observed in work with small enterprises and individual entrepreneurs.
The NLB Group also notes that in the first half of 2017, the quality of the loan portfolio improved. This was due to the higher standards for new loans and a low volume of problem loans (down by 12%). The share of impaired risk, based on EBA recommendations, fell by 9% in the first half of the year.