NLB will distribute an additional 110 million euros to shareholders

The largest Slovenian bank will hold its second shareholders' meeting of the year on December 9, where shareholders will vote on the distribution of the second part of the retained earnings. NLB proposes to distribute an additional 110 million euros for dividends, which brings 5.5 euros gross dividend per share.

In total, NLB will distribute 220 million euros for dividends this year, or 11 euros gross per share. It will pay out 40 percent of last year's net profit per share for dividends. The proposal must, of course, be approved by the bank's shareholders. Shareholders will receive the second part of the dividends on December 17.

NLB has been distributing dividends in two parts for several years. According to the management, such a distribution has less impact on the fluctuation of the share price. The bank also achieves greater flexibility in ensuring capital adequacy. If the financial market conditions were to deteriorate, for example, it could reduce the second part of the profit distribution or not hold the meeting.

Record profit and unsuccessful acquisition

In addition, NLB is trying to create a reserve for potential acquisitions in the region. This year, it unsuccessfully attempted to acquire the Austrian Addiko Bank. Despite the support of the Austrian bank's management, the offer was accepted by only a good third of the shareholders. The acquisition became complicated when the Serbian Alta Pay acquired about a fifth of the Austrian bank's shares without regulatory approval. The ECB then revoked the voting rights of the Serbian company, and regulatory procedures are still ongoing.

In the first half of the year, NLB increased its net profit by a fifth, reaching 292 million euros. The profit for the second quarter alone increased by 24 percent year-on-year, reaching 152 million euros, but net interest income has stagnated for the second consecutive quarter. The bank will disclose its third-quarter performance at the beginning of November.