Presentation

NLB Group is the largest Slovenian banking and financial group. As at December 31, 2012, it comprised NLB and 45 banks and companies. Banking is NLB Group’s most important activity, while the Group also provides other financial services, such as insurance, asset management, leasing, factoring and forfeiting.

Banking

Beside Slovenia NLB Group is also present in the banking sector on the following markets: Bosnia and Herzegovina, Montenegro, Macedonia, Serbia and Kosovo.

Bosnia and Herzegovina

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

NLB Razvojna banka is a full-service commercial bank with the second largest business network in Republika Srpska. It has been an NLB Group company since 2005. 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 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 assets. It is an NLB Group company since 2005.

Montenegro

NLB Montenegrobanka operates as a full-service commercial bank and has been owned by NLB Group since 2003. In that time, it has become one of the most well-known banks in the area, and is the country’s second largest bank in terms of total assets.

Macedonia

NLB Tutunska banka operates as a full-service commercial bank and is one of the most successful companies of NLB Group. It has operated as part of NLB Group since 2000. The bank targets retail customers, and 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 full-service commercial bank that ranks sixteenth in the country in terms of total assets. It has been active on the Serbian market since 2003.

Kosovo

NLB Prishtina is a full-service commercial bank that ranks third in Kosovo in terms of total assets. It provides a solid foundation to complement the range of banking and financial services on the emerging Kosovo banking market. NLB Group has been active in Kosovo since 2007.

NLB Group is also present in EU countries via the associated bank Adria Bank in Austria and the Trieste Branch in Italy.

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 South-eastern Europe.

Non-banking activities

Asset management

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. It holds a market share of 22.4% in terms of mutual fund assets from non-privatization sources. NLB Skladi offers highquality investor services provided by NLB Group’s banking network.

Life and pension insurance

NLB Group provides life and pension insurance services.

NLB Vita, which is 50% owned by 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 6.1% share of the Slovenian life insurance market.

Skupna pokojninska družba is an associate of NLB Group, and is one of the leading providers of voluntary supplementary pension insurance in Slovenia. The company holds a 21.9% market share in terms of funds collected.

NLB Group also provides pension insurance services in Macedonia, where NLB Nov penziski fond offers compulsory and voluntary pension insurance. It holds a 47.4% market share in terms of the number of participants in the compulsory pension fund, and a 31.3% share of the voluntary pension fund.

Leasing

With seven active companies, leasing represents an important activity for NLB Group in terms of total assets. The focus of the leasing activity in past years was primarily on the markets of South-eastern Europe, where high growth was recorded. Recent significant changes to conditions have dictated the adaptation of the previous business model. Leasing is thus no longer a strategic activity of NLB Group.

For the purpose of further development and due to the adaptation to new market conditions and the optimization of operations, a governance model was established that envisaged 100% ownership of leasing companies by NLB, intensified cooperation with local banks in terms of risk management and the updating of corporate governance by NLB Leasing Ljubljana. These policies were implemented in 2012. In accordance with the Group’s strategy, leasing companies on the Slovenian market were merged, while companies in Croatia and Bulgaria are in the process of divestment.

Leasing companies together employ 151 people. NLB Leasing Ljubljana holds a 6% market share in terms of the financing of new investments, ranking it sixth in Slovenia. NLB Group also has a high market share in the leasing segment in Macedonia (33%) and Montenegro (23%).

Factoring and forfeiting

NLB Group provides factoring and forfeiting services in Slovenia through the Prvi faktor Group, which also operates on the markets of South-eastern Europe. There are independent factoring companies located in Switzerland and the Czech Republic, while the company in Slovakia was liquidated in 2011. Factoring is no longer a strategic activity of NLB Group. The divestment of equity holdings in existing factoring companies is therefore in progress.

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 (e.g. the purchase, 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.