By Vlastimir Vuković, Chief Executive Officer, NLB Komercijalna Banka
In a rapidly changing world in which challenges are increasing, only the most successful entities have the ability not only to respond to market changes but also to shape them. NLB Komercijalna Banka is one of these leaders. Through its innovations and strategic decisions, it actively contributes to the development of Serbia’s banking sector. It has not only adapted to the market but also steered it towards a more sustainable and efficient future.
At a time when security, efficiency and reliable digital services are crucial for banks, NLB Komercijalna Banka has proven that true transformation includes not only technical modernization but also the processes of building trust, stability and long-term value. With a clear vision that focuses on customers, innovation and sustainable development, and also our employees, we have positioned ourselves as not only a leader that manages equity well but also as a responsible partner that contributes to the development of a more resilient and inclusive financial system.
Integration as a model for success
NLB Komercijalna Banka, a member of the NLB Group and a systemic bank in the Serbian market, was formed through the merger of NLB and Komercijalna Banka—in other words, the completion of one of the most complex but also most successful financial integrations in the region—in May 2022. Despite a challenging transition period, the bank managed to make strong progress in all key business segments, recording twice as high a business result as the previous year, 2021. In a short period, it surpassed the enviable anticipated success of the integration and wrote the first chapter in the new bank’s history, with actual results exceeding all former plans and predictions.
The merging of the two banks lasted a total of 430 days, during which more than 500 employees and external partners successfully mapped and integrated all processes and organizational parts. The one million clients of both banks were regularly informed about each key step of this complex process, which is why it was characterized in professional circles as an “example of a successful bank merger”.
Thanks to the integration, the new bank has consolidated €4.7 billion worth of joint assets and around one million active clients, as well as significantly more products and services.
It has remained a reliable support for citizens in solving important life issues, defended its position as the absolute market leader in issuing agricultural loans and unconditional support to farmers, and confirmed that the local economy recognizes it as a strategically important partner.
Immediately after the merger, it continued to invest in the local market and stood out as the first bank in Serbia to replace its entire ATM (automated teller machine) network with multifunctional machines of the latest generation that have all the functionalities that modern life and business require, such as depositing daily takings and withdrawing funds, through integrating all channels, offering a contactless function and providing a QR (quick-response) reader.
As a member of the NLB Group, a leading banking and financial group with its headquarters in and exclusive strategic focus on Southeast Europe (SEE), NLB Komercijalna Banka strives to initiate systemic changes towards a more sustainable future for the entire region. Its socially responsible activities are comprehensive and include active participation in the circular economy, ESG (environmental, social and governance) initiatives, support for young people and local businesses, networking, organic farming and business facilitation for all businesses in the region.
Mr. Vlastimir Vuković, Chief Executive Officer, NLB Komercijalna Banka
NLB Komercijalna Banka’s business results: far above forecasts
In the previous period, NLB Komercijalna Banka grew strongly in all key business segments and achieved results above plans and expectations.
The achieved results are confirmation that, even in challenging and turbulent market conditions, we have remained a reliable support for citizens in solving their important life issues and a strategically important partner of the entire economy. With a sustainable and responsible business model, which is based on our deep knowledge of the industry, we have justified our position as a leader in trust as the bank with the largest number of active clients in Serbia. With the support of our parent, NLB Group, we have continued to invest in the markets in which we operate, and as a systemic and universal bank, we have remained a bulwark of financial stability for the entire country.
Like our parent group, NLB Komercijalna Banka has the capacity and strong motivation to support the development of the local market and, indirectly, the entire region that is our home. So far, it has done so, among other things, through the financing of the country’s largest infrastructure projects, exclusive funding of unique projects in Serbia and the region, and participation in the largest syndicated loans.
In 2024, NLB Komercijalna Banka recorded significant growth in its loan portfolio, indicating its successful cooperation with corporate and retail customers. Cash-loan production rose by an impressive 61 percent compared to 2023, while housing-loan generation grew by almost a quarter, indicating the stable demand for financing in the real-estate sector. In the agricultural sector, we recorded a 15-percent increase in loan approvals, demonstrating our bank’s commitment to supporting key sectors of the economy.
In addition, with a placement of more than one billion euros, we recorded a growth of as much as 28 percent in the approval of loans for large and infrastructure projects, confirming our ongoing engagement in financing the economic sector. We also continued to expand our “green portfolio”, which reached a value of €189 million last year, thus significantly contributing to sustainable development and environmental protection.
However, the question arises: How, despite a very complex and challenging situation, have we achieved such strong growth? The answer lies in our willingness to change and completely transform the traditional business model.
Transforming the business model—thinking and working
Our parent, NLB Group, has responded to technological changes and the expansion of artificial intelligence (AI) by forming the DigIT Center, a unique greenfield investment in Serbia. Through this technology hub, more than 120 top IT (information technology) experts develop and implement advanced IT solutions for all the Group’s members. NLB Group has thus become the first financial group in the region to expand and transform the traditional banking business model, not only by its digitization of products but also through its ways of thinking and working.
Strengthened by the support and expertise of its parent group, NLB Komercijalna Banka is implementing a complex program of digitalization and transformation of the bank through 24 projects with more than 3,000 activities, in which 400 employees from all domains of the bank’s business optimize processes and modernize products with the help of various technologies. This includes the use of artificial intelligence in the automation of various background processes, in the processes of preparing communication in the Contact Center, as well as assistance in the processes of performing various analyses. However, no matter how much technology improves, the human factor remains irreplaceable in strategic decision-making, creative thinking and innovation, which is why we invest in our employees alongside technology.
To confirm and justify our position as the bank of first choice for clients and employees, we have continued the process of optimizing procedures, digitizing products and services, and placing sustainability at the center of every business decision. As part of our work on developing innovative digital solutions, we have redesigned and improved existing applications. We also launched a new factoring platform, which provides clients with a modern, efficient and fully digitized way of trading in receivables.
One of the results of this transformation is our new website (www.nlbkb.rs), part of the project initiative launched by our parent, NLB Group, in 2022. Thanks to the expertise of our colleagues, NLB Komercijalna Banka is the first member bank to implement it, and the new website offers a better user experience, with easy-to-understand content and interactive elements.
Most importantly, we continue to build an agile and sustainable model of the bank of the future, which will be even more efficient, simpler and closer to clients but ready to support the entire national economy sustainably in the direction of further development.
Our transformation program has also been recognized by the International Banker magazine, which awarded NLB Komercijalna Banka with the prestigious award in the category “Best Innovation in Retail Banking Serbia 2024”.
Sustainable and socially responsible business
We believe that our success depends on the prosperity of the communities in which we operate, which is why sustainability is at the heart of all our business decisions. NLB Group, and thus NLB Komercijalna Banka, are signatories to the United Nations Principles for Responsible Banking, as well as the Net-Zero Banking Alliance (NZBA). By 2050, the amount of greenhouse gases we generate through our operations will be equal to the amount of gases we remove from the atmosphere through various initiatives.
We have set sustainability as a central focus with a clear goal: to invest more than one billion euros by 2030 in renewable energy and energy-efficiency projects. By reducing our environmental footprint, we help conserve natural resources but also reduce operating costs and contribute to financial stability. For us, it is a way to invest in the community and the sustainability of our business.
In the previous period, we made a significant contribution to the development of renewable-energy sources through the financing of large wind farms, investments in solar panels and energy-efficient projects, replacement of transport capacities with environmentally friendly ones, support for green building construction and increases in our portfolio of energy-efficient facilities.
The building of our new headquarters uses electricity from renewable sources; we have switched to a paperless procurement process; and we have replaced our fleet with electric and hybrid cars. We have also developed an entire portfolio of green products, while through projects such as Organik, Help Frame and Youth Housing Loans, we have contributed to environmental and social initiatives.
Through donations and sponsorships to charity, health, cultural, sports and other institutions, we contribute to improving the quality of life. In 2024 alone, NLB Komercijalna Banka donated €300,000 to charitable organizations that improve living conditions for families, children and the elderly in Serbia.
Our commitment to initiating and implementing positive changes in the communities in which we operate has been recognized by the prestigious financial magazine Euromoney, which named NLB Komercijalna Banka as the best socially responsible bank in Serbia in 2024. The award was given on the basis of a thorough analysis of the bank’s operations, which included financial results, innovations, quality of customer relationships and contributions to social responsibility.
A sustainable approach also incorporates an inclusive work environment that recognizes and develops employees’ talents. By investing in our people, we ensure their professional and personal well-being, and this is reflected in their work and contributions to the bank. Such a strategy allows us to build employee and community loyalty, which is key to long-term success.
Employee satisfaction as the key to success
At NLB Komercijalna Banka, people work for people, and we understand that balance is the key to not only happiness but also success. That is why we are proud that NLB Komercijalna Banka has become the first Family Friendly-certified bank in Serbia, thus confirming its commitment to supporting employees and improving their experiences. It is important to us that they feel good in and out of the workplace and that they know that our support and care do not end at the end of the working day.
This certificate provides numerous benefits for all our employees, such as interest-free loans, additional free hours for innovation and thinking, scholarships for employees’ children, annual health checkups, numerous discounts towards better free time, corporate volunteering and many other benefits that affect the work-life balance.
Last year, we received the prestigious Top Employer certificate, which officially recognized us as one of the most desirable companies for which to work in Serbia. This recognition, awarded by the Top Employers Institute, a global authority in recognizing excellent human-resource management practices, reaffirms our commitment to creating better job opportunities and improving employees’ experiences.
We firmly believe that our most important task is to provide every employee with the opportunity to realize his or her full professional and personal potential. Our working environment is built on a foundation of respect for diversity and implies that the uniqueness of each individual helps create the greatest strength of our team.
Thanks to its culture-transformation process, NLB Komercijalna Banka’s employees have a real opportunity to participate in numerous connective initiatives and improve satisfaction. Also, through structured projects, they can ameliorate their physical, mental and spiritual health at any time, take care of the environment, collect donations and choose to which charitable organizations their monetary donations will be provided.
Our new, smart and energy-efficient office building also contributes to improving their satisfaction. The complete reconstruction of five floors and 10,000 square meters of workspace involved more than 750 days of work, a team of almost 150 professionals and an investment by the NLB Group worth about 10 million euros. The first building in the NLB Group, which has been completely reconstructed according to strict ESG standards, also has a green oasis, a café and an entertainment and education zone. As such, it is the greatest boost that could be given towards the achievement of NLB Komercijalna Banka’s strategic goal: to remain the bank of first choice for employees and clients.
Through a successful integration, transformation of the business model and strong support to the community, NLB Komercijalna Banka not only improves the financial sector but also lays the foundations for a future in which responsibility, efficiency and sustainability will be the key factors of development. This success story is just the beginning, because with clearly defined goals, we will continue to inspire and create value for our customers, employees and the entire community.