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
NLB has successfully completed its privatisation program
this year, by adopting a unique model allowing it to maintain
its identity with a long history in the region, while
strengthening its corporate governance and improving its
business orientation. The shareholding structure of the
Bank consists of the Republic of Slovenia (36 per cent),
KBC (34 per cent), the European Bank for Reconstruction
and Development (5 per cent), Slovene funds (10 per cent),
and other Slovene investors (15 per cent).
The transition has been very smooth, reflecting the high
level of professionalism and the strong support and commitment
of both the new foreign shareholders and the
Slovene owners. One of the key factors of the successful
privatisation was the high level of professionalism of management
and staff who represent the most valuable assets
of the Bank.
A new Supervisory Board, representing the new shareholding
structure, was elected by the General Assembly in
September 2002. The Board consists of eleven distinguished
professionals from Slovenia, KBC and EBRD. The
members are: Mr. Anton Žunič (president), Mr. Uroš
Slavinec (deputy president), Mr. Herman Agneessens, Mr.
Frans Florquin, Mr. Zvone Ivanušič, Mr. Igor Kušar, Mr.
Jože Lenič, Mr. Dirk Mampaey, Mr. Victor Pastor, Mrs.
Metka Tekavčič and Mr. David Michael Truman.
The Supervisory Board appointed a five member
Management Board reflecting the continuation of the success
of the old management, the commitment of KBC, and
the business strategy of NLB and the Group in Slovenia and
in the region. The Management Board consists of: Mr.
Marko Voljč (president), Mr. Andrej Hazabent, Mr. Pierre
Van Keirsbilck, Mr. Matej Narat and Mr. Borut Stanič.
The Supervisory Board has already approved a system of
corporate governance in line with international practice
applicable for leading banking institutions. The Board has
approved a detailed business strategy for the Bank and the
Group, with focus on consolidation of some areas and
expansion in others. The Board will also pay special attention
with regard to the management information system
and automation, quality of services, risk management, and
The strategy of the Bank and the Group is to maintain its
leading role in Slovenia and to increase its presence in the
neighbouring region. The Bank will adopt measures to
improve its competitive edge, by implementing a cost
rationalisation program that would allow it to operate
profitably with more competitive margins. Moreover, the
Bank will focus on strengthening the relationship with its
clients by providing high quality services and introducing
The privatisation did not have any adverse effect on the
performance of the Bank. At the end of the 2002, total
consolidated assets (under Slovenian Accounting
Standards) reached 1,981.0 billion tolars, an increase of
14.4 per cent over last year, while the Group's equity stood
at 107.3 billion tolars, an increase of 3.1 per cent.
Significant achievement in the year was the growth of noninterest
income where commission and fees on the consolidated
level witnessed an important surge of 49 per cent
reflecting the various arrays of financial products offered by
the Bank and the result of its focus on fee based activities.
The Bank continued its consolidation of its domestic and
international operations. The market share of the Bank and
its domestic daughter banks in Slovenia reached 38.7 per
cent in 2002, and it is expected to increase in 2003 as the
results of improving the relationship with clients and
increasing of some capital investments.
The Bank has managed to dissolve its operation in New
York, in accordance with the approved budget and strategy.
On the other hand, the Bank is considering acquiring
new banking institutions in the former Yugoslavia, and
participating in a new banking venture in Bulgaria. The
strategy behind the regional expansion is to improve the
ability of the Bank to service its existing clients, and to
operate in new markets where it has competitive
The Bank has already benefited from the participation of
the new shareholders; most notably in introducing new
financial products, obtaining long-term funding, and referring
of new businesses throughout its network.
We understand the challenges that lie ahead, including
those associated with the banking industry in general, and
those pertaining specifically to NLB. We are confident that
we can implement our business strategy in Slovenia and in
the region successfully.