Profile of NLB Group and NLB
NLB Group and NLB financial highlights
Supervisory Board Members
Statement of the President and Chief Executive Officer
Financial Review of NLB Group and NLB in 2002
NLB Group and NLB risk management
Human Resources Management
Audited Consolidated Financial Statements for NLB Group under Slovenian Accounting Standards
Financial data and figures of NLB according to Bank of Slovenia Methodology
Audited Financial Statements for NLB d.d. under Slovenian Accounting Standards
Audited Consolidated Financial Statements for the NLB Group according to
International Financial Reporting Standards
Audited Financial Statements for the NLB d.d. according to
International Financial Reporting Standards
PROFILE OF NLB GROUP AND NLB
Nova Ljubljanska banka Group ('the Group') is the strongest
financial and banking group in Slovenia and is becoming a
key regional player in south-east Europe. It has reached a
market share of almost 40 percent of the Slovenian banking
sector that now consists of 19 banks and is growing its market
share in the important countries in the region.
The Group consists of 39 banks and companies in Slovenia
and abroad. Nova Ljubljanska banka d.d., Ljubljana ('NLB' or
'the Bank') is the largest and most important financial institution,
accounting for over three quarters of consolidated
total assets. Group member banks in Slovenia include three
daughter banks, Koroška banka, Banka Zasavje and Banka
Domžale and an associate bank, Banka Celje. The Slovene
companies include LB Leasing, LB Factors, Feniks, Fit Leasing,
LB Maksima, LB Hipo, LB Propria, Real, Bankart, Prospera
Plus and Skupna pokojninska družba. These companies are
involved in a range of activities including leasing, factoring,
fortfeiting, asset management and pension insurance.
The NLB Group abroad is present in two core geographical
regions - the EU markets including candidate countries and
southeast Europe markets. NLB holdings abroad include
foreign banks: LHB Internationale Handelsbank, Frankfurt,
Tutunska banka, Skopje and Commercebank, Sarajevo,
Adria Bank, an Austrian affiliated bank. Other important
foreign financial organisations include LB InterFinanz AG,
Zurich, LB InterFinanz Praha and LB Factoring CZ, Ostrava.
NLB is among the best rated banks in Central and Eastern
European region, with ratings A- (Fitch, Capital
Intelligence), Baa2 (Moody's) and BBB- (S&P's).
In September 2002 the first phase of privatisation successfully
concluded with a 34 percent stake of the state being
purchased by the Belgian banking and insurance group
KBC and 5 percent by the European Bank for
Reconstruction and Development (EBRD).
The privatisation process has brought considerable change
within the organisation with a change in the Management
Board and the Supervisory Board that is now reflecting the
new ownership structure. This has brought further improvement
in corporate governance and provided a sound base
for future growth.
On the business front NLB maintained its position as the
leading bank in Slovenia, despite increased competition
especially from foreign banks present in the local market.
At present 95 percent of the total assets of the NLB Group
is represented by banks. Significant groundwork was completed
in the preparation for development of new fields
complementing traditional banking activities. In particular
bankassurance and asset management, are areas that NLB
will enter into while other strategic activities that are yielding
dividends include leasing, factoring and forfaiting.
In 2003 NLB will offer clients bank-assurance services in cooperation
with KBC. NLB and KBC are in the process of
establishing a new life insurance company, NLB Vita. The
operational plan is in process and includes how the company
will approach the market, the target range of products
and integral sales. At the same time, we will start to market
new services within asset management by establishing a
company NLB Skladi.
Operationally NLB continued its business rationalisation and
technology development through the IT based SIGMA project.
A number of new operations were ported onto the
new IT platform during the year and a new delivery channel
mobile phone banking was introduced.
With the intention of achieving greater quality of NLB operations,
a new organisation structure was implemented at
the beginning of 2003. Its primary advantage is combining
business into five centers regarding customer segments.
These centres are: Treasury, Investment Banking, Asset
Management and Group Investments Value Centre, Retail,
SME and E-Banking Value Centre, Corporate Banking Value
Centre, International Banking, Information Technology and
Operations (Value Centre) and Governance Centre.
The state's shareholding in NLB capital reduced by 8.7 percentage
points following the acquisition of three Slovenian
daughter banks (Dolenjska banka, Banka Velenje and
Pomurska banka). The integration of the three daughter
banks enabled both the Group and NLB to further strengthen
their core competitive advantages in the domestic market.
Koroška banka, Banka Zasavje and Banka Domžale while
they are subsidiaries they still remain to be fully acquired in
the next period. The Group also holds a share in its associated
bank, Banka Celje.
Fitch upgraded NLB's long-term FX credit risk ratings to
A- in July.
Moody's and Capital Intelligence both upgraded NLB's
long-term foreign currency credit ratings to Baa2 and A-.
Together with Slovenia's largest insurance company, NLB
established a new pension insurance company, Skupna
pokojninska družba d.d., Ljubljana.
With expansion outside Slovenia, NLB increases its operations.
It acquires a significant capital shareholding in
Tutunska banka a.d., Skopje.
Commercebank d.d., Sarajevo joins the NLB Group.
NLB introduces electronic banking service for corporate
clients (Proklik) and Internet banking for retail clients.
The Bank is increasing and strengthening its business volume
The official ending of the rehabilitation of NLB d.d.,
Standard & Poor's, FITCH IBCA, Moody's, Thomson
Financial BankWatch and Capital Intelligence each assigned
Investment Grade Ratings to NLB.
NLB becomes a major shareholder in Bankart, a card and
ATM's processing company.
A renewed corporate visual identity of NLB is launched.
Nova Ljubljanska banka d.d., Ljubljana is established by
Legislative Act of the National Assembly of the Republic of
Slovenia. NLB assumes the majority of the assets, liabilities
and operations of LB d.d., Ljubljana, with the exception of
certain liabilities and guarantees of LB incurred during the
existence of the former SFRJ.
NLB establishes a company for managing investment funds,
LB Maksima, and a joint stock company specialising in factoring,
LB d.d. entered a program of rehabilitation, initiated by the
Government of the Republic of Slovenia and the Bank of
Critical self-rehabilitation activities were implemented,
which enabled strengthening of liquidity and solvency.
Ljubljanska banka-Gospodarska banka, Ljubljana merges with
LB d.d. and as a consequence LB d.d. acquires a significant
network of domestic savings offices thereby enabling LB d.d.
to adopt a universal banking status.
All of LB banks become joint stock companies. The LB system
comprises: Parent bank-LB d.d., Ljubljana, 5 subsidiaries
and 14 member banks (formerly basic banks).
Ljubljanska banka group is formed, consisting of:
Ljubljanska banka-Združena banka and 22 associated
Kreditna banka and hranilnica Ljubljana is renamed to
Ljubljanska banka, Ljubljana. The bank is in the top 100
banks of the World.
Komunalna banka Ljubljana is formed.
First Slovene savings banks are established - 1862 in
Maribor, in Celje 1865 and in 1889 Mestna hranilnica ljubljanska,
predecessor of Nova Ljubljanska banka.