Slovenia's NLB updates 2023 cost guidance on high inflation across SEE

The bank has accordingly changed its cost guidance for 2025 to 530 million euro from 490 million euro but remains committed to a cost-to-income ratio (CIR) target of around 46% this year and under 50% in 2025, NLB said in an interim report posted on the website on the Ljubljana Stock Exchange on Friday.

NLB now expects its regular income to exceed 1.0 billion euro in 2023, up from the previous guidance, which was around 1.0 billion euro, while the cost on revenue (CoR) guidance for 2023 is set at around 0 basis points (bps), up from under 15 bps previously, the bank said.

The outlook already includes the impact from the expected Slovenian government’s tax measures, directed towards reconstruction efforts following the floods that occurred this summer. The tax on total assets is expected to result in excess of 30 million euro negative impact on profit in 2024, NLB added.

NLB recorded a consolidated after-tax profit of 386.9 million euro in the first nine months of 2023, up 2% on the year, as net income rose 42% to 800.8 million euro, while net interest income grew by 70% to 601.5 million euro.

($ = 0.93442 euro)