Nova Ljubljanska Banka D.D.

The stable outlook reflects our expectation that NLB will stick to its issuance plans, thereby strengthening its ALAC buffers. It also reflects our view that NLB will preserve a solid balance sheet and financial performance despite remaining uncertainties from the pandemic and indirect effects from the war in Ukraine over the next 12-24 months. We project a relatively resilient earnings and asset quality performance, fostered by the bank's robust risk management standards and business diversity in Slovenia and its operations in SEE. Under our base case, we expect NLB will create value from its recent acquisitions and benefit from gradually rising interest rates. We could take a positive rating action over the next 12-24 months if NLB achieved higher-than-expected capitalization

...We expect Nova Ljubljanska Banka D.D. (NLB) to withstand uncertainties from the war in Ukraine and remaining tail risks from the pandemic. S&P Global Ratings expects that the bank will continue to show robust business and earnings performance thanks to its leading position in its core markets and solid business model (see chart 1 and 2). Its sound risk management and business diversity in its home market and Southeastern Europe (SEE), as well as management's proven expertise, have strengthened NLB's resilience and profitability since the banking crisis in Slovenia during 2011-2013....

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