Annual Report: - Gorenjska banka

The quality of banks' investments deteriorated substantially; therefore, banks strongly increased
additional provisions and impairments. Banks are still facing limited sources of funding. Repayments
of foreign loans are still relatively high. It can be expected that the credit activity of the Slovenian
banking system will stay rather modest also in the future. Despite the Act on Tax on Banks' Balance
Sheet Assets, which introduced the system of benefits encouraging banks to increase loans to
companies, banks will only decide to grant loans if the credit risk is not too high. Capital adequacy
ratio will also represent a restricting factor. Unfavourable situation on the labour market will not
strengthen net inflows of household deposits, with the possibilities of increasing Slovenia's debt for
investments in the banking system being severely limited.
Total assets of the banking system dropped by EUR 1.5 billion in 2011. Despite higher corporate
deposits, banks have not yet succeeded in compensating for lower government deposits and liabilities
to banks. Impairments of loans further decreased total assets. The market share of Gorenjska banka
grew from 3.94% to 3.98%.
In 2011, banks disclosed (according to unaudited figures) EUR 471 million losses before tax (2010:
EUR 92 million). Gorenjska banka is with EUR 1.7 million profit before tax among eight Slovenian
banks ending 2011 at a profit.
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Gorenjska banka, d. d., Kranj
Annual Report 2011
Management Report