The company notes that depending on further developments, considered for the eventual partial distribution towards the end of 2020 or later.

NLB Group published the convocation to the GSM scheduled for 15 June in which the Management Board and Supervisory Board will propose the distribution of distributable profit from 2019. The proposed distribution will be to keep the entire distributable profit generated by NLB amounting to EUR 228.04m (including the net profit generated in 2019, as well as the profit carried over from the previous years) undistributed as profit to be carried over, which implies no dividend payment. It is important to note that the company notes that depending on further developments, considered for the eventual partial distribution towards the end of 2020 or later. The proposal is in line with ECB’s recommendation for banks not to pay dividends at least until 1 October 2020.

Note that such a proposal does not come as a surprise, as NLB is currently faced with a challenge of absorbing both the acquisition of Komercijalna Banka and the current market situation posed by Covid 19 crisis, which led to temporary closure of many businesses during March.  

In their conference call regarding the implications of Covid-19 situation, the management noted that NLB does not plan on revising their medium-term dividend policy and is comfortable with fulfilling the 70% payout ratio for the coming years.

NLB’s CEO Blaž Brodnjak noted that a strong capital position in the current environment is of key importance to go successfully through the upcoming uncertain and challenging period. This, along with systemic measures taken by the government and the Bank of Slovenia to help the economy, enable the bank to overcome the consequences of the epidemic and economic hibernation.