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 Market-leading position in Slovenia and Southeastern European (SEE) countries, with solid profitability. Credit quality risks from operations in SEE markets, where asset quality is generally weaker than in Slovenia. Strong liquidity thanks to leading deposit franchise in its core markets. Pressure on capitalization and operational risks from growth plans and potential acquisitions. Well-defined resolution framework across the group's entities, underpinned by sound additional loss-absorbing capacity (ALAC) buffers. The slow up-pricing of customer deposits, against fast loan repricing, has substantially contributed to NLB?s profitability amid the European Central Bank (ECB) hiking policy rates. Considering
