Introduction

The NLB Group is the largest Slovenian banking and financial group. As at December 31, 2010, it comprised NLB and 50 banks and companies, and a branch and representative offices abroad. Banking is the NLB Group’s most important activity, while the Group also provides other financial services, such as leasing, factoring and forfeiting, insurance, and asset management.

 

 

The NLB Group operates in 17 countries, covering 18 markets, and includes:

• 12 banks and 1 branch abroad;
• 9 leasing companies;
• 10 factoring and forfeiting companies;
• 5 insurance companies;
• 1 asset management company; and
• 14 companies performing other activities.

In 2010, NLB adopted a new strategy that includes a redefinition of strategic markets and the activities of the NLB Group. The Group’s strategic markets remain the countries of the former Yugoslavia, while NLB intends to enter other markets. The NLB Group has also changed its focus with respect to complementary banking services, with factoring and real estate leasing becoming non-strategic activities.

Over the next three years, NLB intends to sell off its investments on non-strategic markets and investments in factoring companies. The aim of these measures is the organizational and financial consolidation of the NLB Group, which will make it possible to focus more intensively on the most profitable and prospective markets and activities.

Awards and recognition

In 2010, the NLB Group received several awards for excellence from industry experts and the general public.

Awards for excellence in operations

The renowned financial magazine Global Finance recognized NLB as the best bank in Slovenia for the thirteenth consecutive year. NLB was also named best Slovenian bank for foreign exchange trading for the seventh year in a row.

The analysts of Frost & Sullivan recognized NLB Skladi with its market penetration leadership award.

Awards for excellence in marketing

The readers of Reader's Digest recognized NLB as the most trusted bank in Slovenia for the fourth year, awarding it "Trusted Brand 2010" in the banking category.

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Banks in SE Europe

The NLB Group is a Slovenian banking and financial group that has given a great deal of attention over the last 10 years to expanding to the markets of SE Europe. The NLB Group is present in the banking sector on the following markets of SE Europe: Bosnia and Herzegovina, Macedonia, Serbia, Montenegro and Kosovo.

Bosnia and Herzegovina

 

The NLB Group operates in both entities, the Federation of Bosnia and Herzegovina and Republika Srpska.

NLB Razvojna banka is a full-service bank that is also registered for securities trading. It has the second largest business network in Republika Srpska. It is the largest bank in Republika Srpska in terms of the number of customers, and the second largest in terms of total assets.

NLB Tuzlanska banka is a full-service bank with over a hundred years of tradition in providing financial services in the Federation of Bosnia and Herzegovina. It is the fifth largest bank in the Federation of Bosnia and Herzegovina in terms of total as sets.

Montenegro

 

NLB Montenegrobanka operates as a full-service commercial bank. It is the second largest bank in the country in terms of total assets.

Macedonia

 

NLB Tutunska banka operates as a full-service commercial bank and is one of the most successful companies in the NLB Group. Last year, it was named the best bank in Macedonia by the financial magazine The Banker for the fifth consecutive year. The bank targets small and medium-sized enterprises (SMEs). It is the third largest bank in the country in terms of total assets.

Serbia

 

NLB banka is a universal commercial bank that provides banking services to individuals, corporates, banks and international institutions. It ranks sixteenth in the country in terms of total assets.

Kosovo

 

The NLB Group has been present in Kosovo since the spring of 2007. NLB Prishtina is the third largest bank in Kosovo in terms of total assets. It provides a solid foundation for comprehensive banking and financial services, and offers high-quality customer services in the emerging Kosovo banking market. The bank contributes to closer ties and the strengthening of economic relations between Slovenia and Kosovo.

Banks in other EU countries

 

LHB Internationale Handelsbank operates as a bank specializing in operations with SE Europe. The bank was in the divestment process at the end of 2010 owing to a change in NLB’s strategy.

NLB Banka Sofia was founded to finance trade flows between Slovenia and Bulgaria, and other central European and Mediterranean countries. Most of its business is with SMEs engaged in commerce, agriculture, and construction. The sale of NLB Banka Sofia was initiated in 2010 due to a change in NLB’s strategy.

An associated bank (Adria Bank) in Vienna, and the Trieste Branch complete the list of NLB Group banks in EU countries.

The Trieste Branch, which operates as an NLB branch, transacts primarily with medium-sized enterprises from northern Italy that conduct business with Slovenia and Central and SE Europe. The bank has two offices, in Trieste and Gorizia.

Non-banking activities

Leasing

NLB Group provides leasing services in Slovenia and on the markets of SE Europe. The leasing companies together employ 180 people.

The NLB Leasing Group and other leasing companies hold a 10.4% market share in Slovenia, placing them fourth in the country. The NLB Group also has a high market share in the leasing segment in Macedonia (31.0%) and Montenegro (16.5%).

Factoring and forfeiting

The NLB Group provides factoring and forfeiting services in Slovenia through the Prvi Faktor Group. The Group also provides these services on the markets of SE Europe, in Switzerland, in the Czech Republic and in Slovakia. The factoring and forfeiting activities employ 184 people.

NLB InterFinanz Zürich primarily provides forfeiting services, but also offers other commercial banking products.

NLB Factor and NLB Factoring companies focus mainly on factoring services (including the collection of receivables, administration and insurance) and on long-term and investment loans and the financing of real estate and development activities.

NLB Group has a 50% stake in the companies of the Prvi faktor Group (with SID banka owning the other 50%). Prvi faktor Group companies specialize in offering comprehensive factoring services (acquisition, insurance and management of receivables on the domestic and foreign markets). The largest company in the Group is Prvi faktor Zagreb, which is also the leading factoring company in Croatia. The parent company, Prvi faktor Ljubljana, is a member of the international factoring association, Factor Chain International (FCI), while Prvi faktor Belgrade is part of the International Factoring Group (IFG).

Following a change in the Bank’s strategy, factoring is no longer a strategic activity of the NLB Group. Thus, the divestment of equity holdings in existing factoring companies is planned in 2011.

Asset management

The NLB Group has provided asset management services via NLB Skladi since 2004. The company is among the leading providers of investment fund management services in Slovenia. Its market share is 19% (in terms of mutual fund assets from non-privatization sources). In addition to the general advantages of mutual funds, NLB Skladi offers additional advantages, such as adjustable savings plans, competitive commission rates and costs, management in line with international standards, genuine transparency of investment policies, timely information for investors, and high-quality investor services provided by all companies in the NLB Group network.

Life and pension insurance

The NLB Group provides life and pension insurance services.

NLB Vita, which is 50% owned by the NLB Group (the other 50% is owned by the Belgian KBC Group), offers life insurance products tailored to fit special needs and sold exclusively through the banking network. NLB Vita holds a 6.4% share of the Slovenian life insurance market.

Skupna pokojninska družba is an associate of the NLB Group, and is the leading provider of voluntary supplementary pension insurance in Slovenia. The company holds a 24.4% market share in the aforementioned segment.

The NLB Group also provides pension insurance services in several countries in SE Europe. NLB Nov penziski fond operates in Macedonia with a market share of 47.2%, while the Montenegrin company NLB Penzija, a subsidiary of NLB Montenegrobanka, is still awaiting a concession/license.

NLB Group
Annual Report 2010