Annual Report: - Gorenjska banka

levels at Gorenjska banka, was strengthened, with risks assumed in 2011 staying at a relatively low level.
We also kept a high level of liquidity. Competitive offers enabled us to preserve an adequate structure of
assets and liabilities as well as to settle timely all current liabilities without exceptions. Any discrepancies
between inflows and outflows are solved easily by activating secondary liquidity. The latter is high mostly due
to well-structured investments with the status of suitable financial property, based on which we can obtain the
funds of the European Central Bank.
Our competitive position was mostly consolidated by developing and introducing both new services and
business models, which enabled us to adjust to the changes in the financial environment and market demands.
We strengthened our position among individuals and enhanced our role in operating with small and mediumsized
enterprises. At the same time, we managed to efficiently control costs, thus keeping our competitive
position despite the further decreasing of margins.
The key performance indicators of Gorenjska banka again exceeded the Slovenian banking average in 2011.
Return on equity reached 0.49 percent and return on assets 0.09 percent, whilst both of these indicators were
negative for the Slovenian banking system in 2011. The ratio of operating costs to average assets at the level of
1.43 percent proves our cost efficiency is above the average of Slovenian banks.
Total assets reached EUR 1.9 billion in 2011, a 1.7-percent decrease as compared to the year before and, at
the same time, a 0.6-percent increase in the market share of Gorenjska banka. The decrease in total assets was
mostly caused by lower indebtedness with banks and lower scope of investments in securities, with impairment
of the credit portfolio also being of a significant importance. The latter will also bear a major impact on the
Bank's operating results in 2012.
The 2012 financial year will not yet bring a substantial relief. In the light of the estimated further recession and
stagnation in the volume of loans, their selective approval, consistent implementation of the comprehensive
risk management policy, and stiffer collateral and exposure limits policies, the Bank sees opportunities
predominantly in consolidating the traditional banking operations, similarly as most of our major competitors.
It is these operations that have always represented one of the fundamental advantages of Gorenjska banka.
The Management Board of Gorenjska banka does not underestimate the complexity of problems lying ahead
of us. We are aware that both the financial and the general economic situation require us to have clearly defined
developmental priorities and to adopt decisions in a deliberate manner. It cannot be denied that Gorenjska
banka begins 2012 in a solid business shape and with a good capital strength. With an efficient promotion of its
advantages and its reputation, it thus remains interesting for the existing owners as well as potential investors,
whilst ensuring safe operations and stable development.
11
Gorenjska banka, d. d., Kranj
Annual Report 2011
Management Report
Gorazd Trček
President of the Management Board