Performance indicators for 2001 are not directly comparable to those
achieved in previous years, due to consolidation effects of the Group
and the Bank level.
The combination of organic growth and the further consolidation of the
NLB Group resulted in a strong increase in the Bank's capital. The Bank`s
profitability remains high despite the significant growth in its underlying
capital, which is reflected in its improved return on equity. The achieved
ROE of 14.9 per cent is one of the highest among Slovenian financial institutions.
The strong increase in average total assets, which was a combination of
the lending and investment activities and the merger of three daughter
banks and the consolidation of foreign subsidiaries at 2001 year end,
was the reason why the return on average total assets (ROA) fell slightly.
The capital adequacy ratios for 2001 were influenced by the following
three factors: the growth of risk adjusted assets, the capital increase
due to the influence of the daughter banks at the level of NLB and different
consolidation effects at the Group level.
The net effect of these factors resulted in preserving required level
of capital adequacy.
In accordance with capital management internal policy the Bank and subsidiaries
of the Group regularly control, review and calculate the amount of capital
and capital adequacy ratio. In order to react immediately on institutional
changes or changes of its financial position the amount and structure
of capital are planned. On the base of the Group's strategic directives
we prepare projections of capital and capital adequacy ratios.