Preserving and improving quality, range of services and customer approach

The Group has continued to enhance both the range and the quality of services on offer to its corporate customers through a combination of its expanding network in Slovenia and abroad, modern distribution channels, specialised Group companies and business cooperation with domestic and foreign financial institutions.

To meet the ever changing, and ever more sophisticated, client requirements of medium-to-large corporate clients and financial institutions, we offer a sophisticated mix of financial services, which we continually seek to develop. We have improved our system of account management, re-organised our customer custody, re-defined strategically important customers and implemented re-designed standards for the management of business relationships. Decentralisation of services for small-medium size enterprises ('SME') and sole traders brought the offer closer to existing and potential customers. Our business advisory function is growing and is helping to build strong partnerships with our SME and sole trader customers, we advise many of them in the development of their business strategy and the more formal business plan. We have also established cooperation with the government's 'Small business development centre'.

Payments migration of corporate customers in NLB

The Group, through its payments system offered corporate clients foreign payments and cash management services. By the end of 2001 the Group had secured a 47 per cent share of the market with more than 16,500 business accounts.

We offer two forms of electronic banking - Proklik and Proklik Plus. The advantage of electronic banking is its favourable pricing, especially for internal payments among Group customers, instant on-line access, and direct control over accounts and transactions. We expect internal payments to reach 60 per cent of all payments by the end of the migration process. We continue to offer all traditional products and services for cash and non-cash transactions including safe deposit boxes in almost all branches for both corporate clients and sole traders. The promotion of electronic banking has enabled us to secure 55 per cent of electronic banking users among all migrated accounts.

Advanced growth of investment activity

Despite the high growth of investments in 2001, we managed to hold and even improve our credit portfolio structure by grade of claims.

The demand for long-term investment funds grew strongly, especially in the field of infrastructure (roads, railways and telecommunications), and was also reflected in the growth of long-term domestic and foreign currency loans to corporations.

We financed some large projects ourselves and also through leading loan syndications. For the first time NLB lead managed loan syndications with foreign banks, initially with Sumitomo Mitsui Banking Corporation and West LB, and then with Westdeutsche Landesbank Girozentrale.

In 2001 we supported our corporate clients in foreign markets, especially in Central and Southeast Europe, with a range of services - securities, mergers and acquisitions, trade finance.