Best bank
Nova Ljubljanska banka Best debt house
Raiffeisen Zentralbank
Best equities house
Publikum
Slovenia?s banking sector has been granted some protection from external competition. This has allowed Nova Ljubljanska banka to dominate the domestic market to a remarkable degree ? it has 37% of the total banking assets in the market, 34% of customer loans and 38% of deposits. NLB?s nearest rival, Nova Kreditna Bank, has failed to make significant gains on it, at least in the past 12 months.
The challenge for NLB in the next year will be to cope with the opening of Slovenian markets after accession, and dealing with more intense competition from foreign banks.
The bank is in a transition phase. Last year, a new IT system led to a payment crisis. KBC, the main investor in NLB, took the opportunity of the crisis to oust the former CEO, Marko Voljc, and replace him with Marjan Kramar. The bank has not had the strongest year, with net interest income down, in common with other accession markets. Costs for the group, according to IFRS figures, grew by Tr4 billion ($20 million). According to one set of figures on its website, net profit was up. According to IFRS figures, however, it was down.
The bright spots in last year?s performance were the results for Banka Domzale, a regional subsidiary, where profit was 23% higher, and there was 143% growth in export loans.
The bank has plans to launch a mutual fund business, and to branch out into structured products such as derivatives. However, if it is to maintain its dominance in the Slovenian market it will have to be quick in putting out new products and adapting to tougher conditions.
Raiffeisen Zentralbank wins the award for best debt house for its strong performance in the loan market, in which it has a 26% market share according to Dealogic. It has been particularly strong in the banking sector, arranging deals for Abanka Vipa, Probanka and Euromarket.
Publikum remains the best local partner in Slovenia. It has managed to stay independent, and even to expand internationally. Its Serbian brokerage subsidiary, Beopublikum, has had a very successful year advising on privatizations. Publikum is the best-connected local broker, as a member of the M&A International consortium and as part of the Auerbach Grayson emerging market equity trading network.
