Retail banking

The NLB Group provides households comprehensive, high-quality, and competitive financial services in Slovenia and abroad to meet the needs of various customer segments and individuals. Retail banking is based on mutual understanding, trust, and cooperation. NLB continuously tracks global trends by providing services and products via contemporary sales channels. It is the leading bank in Slovenia in terms of market share in traditional banking services and contemporary sales channels. Together with the NLB Group companies, it is also successfully establishing itself among other financial service providers.

NLB offers its customers an extensive business network, including 158 retail banking branches and 719 ATMs at customers’ disposal throughout Slovenia. NLB’s network of branches and ATMs is supplemented by an additional 313 branches and 445 ATMs on the markets of SE Europe. Highlytrained advisory personnel in branches provide NLB’s various customer segments comprehensive financial advisory services and various other services. By linking traditional sales channels and advisory services with contemporary sales channels, the Bank ensures its customer quick access to advisory and financial services without having to visit a branch.

At the end of 2010, more than 828,000 personal accounts were open at NLB, representing 40% of Slovenia’s population. NLB’s services include 12 different personal accounts, tailored to the special needs of its various customer segments.

Private banking and the "Platinum Package", which ensure premium features and advisory services, comprehensive asset management and other specialized financial services, are intended for the most demanding and affluent customers. Gold Package personal banking services are tailored to highly demanding and financially powerful clients. Personal and private banking services are used by 11% of NLB’s customers, who are entitled to various benefits at NLB Group companies and partners. In 2010, the Bank continued adapting its range of services for seniors, young families and NLB employees. Package offers were prepared for these customers, providing them additional financial benefits and more services.

In the retail deposit segment in 2010, NLB secured its own sources of funding and restructured shorter-term deposits to longer-term sources through marketing activities. Growth in long-term deposits was 36.9%. The proportion of total retail deposits accounted for by long-term deposits rose to 57.7% in 2010, representing a 42.6% market share of total long-term retail deposits in Slovenia.

Due to the adverse conditions on the financial markets, customers directed funds into other investment forms offered by the NLB Group. NLB Skladi accounted for 61.4% of the net inflows of Slovenian management companies in 2010, while the company ranked third in terms of net sales of sub-funds of the NLB Skladi fund of funds, at more than EUR 10 million. NLB Skladi's market share stood at 15.2% at the end of 2010, an increase of 1.2 percentage points, representing the second highest growth in market share among Slovenian management companies. NLB Vita's offer includes eight banking-insurance products. Despite the adverse market conditions, NLB Vita recorded an aboveaverage increase in the sales of its products, garnering a 6.1% share of the life insurance market by the end of the year. The Bank generate EUR 23.2 million in net inflows in the personal asset management segment in 2010. The balance of assets under management at the end of the year stood at EUR 101.9 million, an increase of 38.1% on the previous year.

NLB's household lending portfolio achieved 1.9% growth in 2010. The biggest increase was achieved by mortgage loans, the volume of which increased by 14.9% in 2010, and by real estate loans, which grew by 7.0%. On the other hand, a decrease in car loans and personal, unsecured loans was characteristic of 2010. The Bank introduced a housing loan with a combined interest rate in the middle of the year. NLB responded to the floods that affected a large part of Slovenia in the autumn by introducing a loan to help mitigate the effects of the floods and landslides. It also participated twice in the government guarantee scheme for household loans by offering packages of loans.

In card operations, NLB enhanced customer loyalty in 2010 by attracting new partners for the "EnKa" loyalty program. NLB customers held around 1.5 million payment cards with which they made purchases totaling EUR 1.75 billion in 2010. BA Maestro debit cards accounted for the highest proportion in terms of number and turnover. NLB continued to upgrade its POS network in 2010 with IP and GPRS terminals.

NLB Klik e-banking underwent a comprehensive upgrade in 2010, with the new technology facilitating future development and integration with other systems. NLB Klik for mobile phones replaced NLB Moba, which was terminated at the end of June 2010. At the end of 2010, NLB Klik covered 28.8% of eligible personal accounts.

The number of retail account reached nearly one million of the markets of SE Europe. Banks continued with customer segmentation and development, and the adaptation of the range of products and services to individual segments with regard to needs. Despite the demanding market conditions, all banks achieved growth in the deposit and credit portfolios in 2010: total households assets were up 30%, while the credit portfolio recorded growth of 4%. In 2010, NLB Group banks in SE Europe markets continued to modernize their branches in key locations in line with NLB standards. This provides for the microorganization of work in such a way that facilitates contemporary retail operations and the transformation of transaction-based banks to advisory and sales-based banks. The harmonization of operations with minimum standards, which is nearly complete at certain banks, will further contribute to the introduction of contemporary and standardized retail operations at all banks. Card operations, which represents one of the greatest development potentials in SE Europe, is developed as part of the basic offer at all banks, and reached an enviably European level at certain banks. Card operations were very successful in 2010, as the number of retail cards issued was up 9%, while card transactions at points of sale were up 19% compared with 2009. The turnover at the points of sale of four banks holding a license to obtain points of sale was up 29% on 2009.