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 potential spillover effects from the war in Ukraine and risks from the economic slowdown in Europe over the next 12-24 months. We project resilient earnings and asset quality performance in our baseline scenario, fostered by the bank's robust risk management standards and business diversity in Slovenia and its operations in SEE. We expect NLB will create value from its bank acquisitions on the back of successful integrations and targeted synergies. We could lower the ratings over the next 12-24 months if the bank issued

...S&P Global Ratings expects Nova Ljubljanska Banka D.D. (NLB) to withstand uncertainties from the war in Ukraine and current economic challenges in its core operating regions. We believe that NLB will continue to show robust business and earnings performance thanks to its leading positions in its core markets and solid business model. The bank's sound risk management and business diversity in its home market and SEE, as well as management's proven expertise, have strengthened NLB's resilience and profitability since the banking crisis in Slovenia during 2011-2013 (see chart 1). We believe NLB's recent acquisitions are positively contributing to its portfolio, both in terms of market...

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