This report does not constitute a rating action. ALAC--Additional loss-absorbing capacity. CRA--Comparable ratings analysis. GRE--Government-related entity. ICR--Issuer credit rating. SACP--Stand-alone credit profile. Overview Key strengths Key risks Strong capitalization, supported by robust earnings capacity. A low market share in Slovenia, which limits competitive positioning against bigger banks. A solid deposit franchise in core regions with sound bank-wide liquidity buffers. High concentration in small and midsize enterprise (SME) lending and a regional focus. Vulnerabilities with regards to digital capabilities compared with larger peers. We think Gorenjska Banka (GB) will maintain sound profitability, with an annual return on average common equity ratio of 11%-14% until 2028. But the ratings on GB are constrained by regional and sectoral concentration risks, and its modest
