Best bank: NLB
Slightly later than expected, early 2023 saw the legal completion of OTP’s takeover of Nova KBM, Slovenia’s second-biggest bank, first announced in mid 2021. OTP announced in mid April 2024 that it planned to merge Nova KBM with SKB banka – which it bought from Societe Generale in 2019 – in the second half of 2024, subject to regulatory approvals. OTP said the merged entity’s brand will be OTP banka and it will be the country’s biggest bank, overtaking national champion NLB.
This year, however, NLB is Slovenia’s best bank, led by chief executive Blaz Brodnjak. NLB, which returned to majority private ownership via a 2018 IPO, completed an important deal, as it closed the legal merger with former Sberbank Slovenian subsidiary N Banka in September 2023, following approval from the European Central Bank in August. NLB signed a sales agreement with the EU’s Single Resolution Fund for the Sberbank unit in 2022, following sanctions against the Russian parent, adding €1 billion of risk-weighted assets to NLB’s end-2021 total of €12.7 billion.
NLB also announced in November 2023 the acquisition of Summit Leasing from former Nova KMB owner Apollo Global Management. Part of Nova KBM until the latter’s OTP acquisition, Summit counted at the time of the sale announcement €890 million of consolidated gross auto finance receivables and €95 million of point-of-sale consumer finance receivables.
As it prepared to announce a new strategic plan in mid 2024, NLB met or surpassed all its key financial targets for 2023, including reporting recurring income of €1.1 billion (it had targeted €1 billion), a cost-to-income ratio of 46%, loan growth of 5% and a return on equity of 21% (it had targeted at least 15%). Net income reached €550 million in 2023, a 23% increase on 2022.
In addition to environmental, social and governance measures including donating €9 million for flood recovery in Slovenia, it also launched what it calls a new digital bank in Slovenia, NLB Klik. The mobile and internet-based service allows customers to categorise their spending, send money and pay bills more easily, and carry out QR-code payments, among other things.
Best digital bank: Nova KBM
In 2023, Nova KBM improved security measures and grew digital transactions and customer engagement.
It implemented an artificial intelligence chatbot called Niko, which successfully answered customer queries on over 900 topics with a 90% success rate.
The bank ensured EU payment services directive two-compliant confirmation of online card payments through the Bank@Net application.
Digital customers as a share of the total rose from 66.4% in 2022 to 70% in 2023.
Best bank for ESG: Nova KBM
Nova KBM made significant progress in promoting environmental sustainability last year.
The bank adopted parent OTP Group’s green loan framework and provided €81 million to finance clients’ sustainable transition.
This included a loan to support Talum, a Slovenian aluminium producer in its €38 million Green Transformation of Billets and Slugs project focusing on carbon neutrality and the use of recycled aluminium.
Best bank for corporate responsibility: SKB Banka
SKB Banka has shown commitment to corporate responsibility through initiatives spanning sports, culture and community service.
It is a financial sponsor of the Olympic Committee of Slovenia. This includes sponsorship of Slovenian athletes, notably middle-distance runner Maruša Mišmaš Zrimšek.
SKB Banka has also played a significant role in enriching Slovenia’s cultural landscape, by sponsoring the entire 2022/2023 season of Slovenian National Opera and Ballet Ljubljana.
Last year the bank also organized a charity challenge that saw over 200 participants undertake more than 300 charitable acts.
The bank stepped up to assist victims in response to the floods that hit the country in 2023. It introduced special loan packages and offered deferrals on existing loans. This assistance extended to its own employees affected by the floods. Beyond financial aid, SKB Banka also made substantial donations to key emergency response organizations, including the Fire Brigade Association and the Mountain Rescue Team.
Best bank for corporates: SKB Banka
SKB Banka’s corporate client base grew to 18,943 last year, a 2.5% increase. It saw a 4.9% rise in domestic payment transactions and a 7.6% increase in international payments.
The bank introduced green loans for renewable energy projects, including for solar energy production and solar panel installation, as well as products financing electromobility.
It also worked on a long-term loan of €6 million for a retail company specializing in construction, home and garden, chemicals and metallurgy. Another financing involved a €4.1 million loan to a Slovenian producer of chicken meat, supporting its investment in new production lines backed by European Union funds.
