Despite the drop in net profit - proceeds from the release of impairments and provisions declined by 44% to EUR 14.4m - the bank's other key indicators improved, according to the interim report.
Net operating income, an indicator of current performance, rose by 1% to EUR 243m on the back of a 2% increase in net interest income, which offset a 1% decline in non-interest income.
The trend was driven by a 1% increase in loans to customers, in particular on strategic foreign markets.
Deposits surged by 6% year-on-year to EUR 10bn and total assets rose by 4% to EUR 12.51bn.
Overall, the quality of the credit portfolio improved, as the share of non-performing loans contracted by 4.4 percentage points year-on-year to 8.3%.
The NPE ratio, a benchmark used by the European Banking Authority (EBA) to measure non-performing loans, improved by 3.2 points over the year before to 5.8%.
On the expenditure side, costs rose by 1% to EUR 140m.
You can learn more about the NLB building and the rest of Republic Square here. Photo: JL Flanner
