Improving profitability and asset quality in core business, reflecting success of the bank's transformation. Continued progress in restructuring and wind-down of nonperforming loans (NPLs) and other noncore assets. Self-funded deposit base in Slovenia and foreign core markets with a strong liquidity cushion. Sluggish credit growth in Slovenia resulting in limited opportunities for new lending. Elevated levels of legacy NPLs remain a burden and compare poorly to those of peer banks. Uncertainty about the success of reprivatization and its impact on the bank's ongoing transformation. S&P Global Ratings' outlook on Slovenia-based Nova Ljubljanska Banka (NLB) is positive. The positive outlook on NLB reflects our continued positive assessment of economic prospects in Slovenia that could support further improvement of NLB's asset quality
