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.

Capital adequacy

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.