SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                    Form 10-Q

(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
    EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30,2001
                                                        -----------------
    OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
    EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM__________TO________


Commission file number     1-14103





                             NB CAPITAL CORPORATION
             (Exact name of registrant as specified in its charter)



                   Maryland                              52-2063921
        (State or other jurisdiction of    (I.R.S. Employer Identification No.)
         incorporation or organization)



125 West, 55th Street, New York, New York          10019
(Address of principal executive offices)         (Zip Code)



                                  212-632-8532
              (Registrant's telephone number, including area code)



(Former name, former address and former fiscal year, if changed since last
report)


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No ____

Applicable only to issuers involved in bankruptcy proceedings during the
preceding five years:

Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13, or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by the court.

Yes ______  No ______


Applicable only to corporate issuers:

Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.


          Class                   Outstanding at November 15, 2001
      Common Stock
par value $0.01 per share                        100

<PAGE>


                             NB CAPITAL CORPORATION

                                      Index
                                      -----
                                                                           Page

Part I. FINANCIAL INFORMATION:

        Item 1. Financial Statements

                Balance Sheets -
                   As of  September 30, 2001 and December 31, 2000............1

                Statements of Income -
                   For the three-month and nine-month periods ended September
                   30, 2001 and 2000..........................................2

                Statements of Stockholders' Equity -
                   For the three-month and nine-month periods ended September
                   30, 2001 and 2000..........................................3

                Statements of Cash Flows -
                   For the nine-month periods ended September 30, 2001 and
                   2000.......................................................4

                Notes to the financial statements.............................5

        Item 2. Management's Discussion and Analysis of Financial Conditions
                   and Results of Operations..................................8

Part II.  OTHER INFORMATION

          Item 6. Exhibits and Reports on Form 8-K............................12


-------------------------------------------------------------------------------

This report contains certain forward-looking statements and information relating
to NB Capital  Corporation (the "Company" or "NB Capital") that are based on the
beliefs  of  the  Company's  management  as  well  as  assumptions  made  by and
information currently available to the Company's  management.  When used in this
report,  the words  "anticipate",  "believe",  "estimate",  "expect" and similar
expressions,  as they relate to the  Company or the  Company's  management,  are
intended to identify  forward-looking  statements.  Such statements  reflect the
current view of the Company's  management  with respect to future events and the
Company's future performance and are subject to certain risks, uncertainties and
assumptions.  Should  management's  current  view of the  future  or  underlying
assumptions  prove  incorrect,  actual  results may vary  materially  from those
described herein as anticipated,  believed,  estimated or expected.  The Company
does not intend to update these forward-looking statements.

References to $ are to United States  dollars;  references to C$ are to Canadian
dollars.  As of  September  30,  2001,  the Canadian  dollar  exchange  rate was
C$1.5785 = $1.00 and certain amounts stated herein reflect such exchange rate.


NB CAPITAL CORPORATION

BALANCE SHEETS

<TABLE>

<CAPTION>
                                        September 30,           December 31,
                                            2001                    2000
(in U.S. dollars)                        Unaudited
-------------------------------------------------------------------------------
<S>                                     <C>                     <C>

Assets
   Cash and cash equivalents            $  10,346,000           $  97,133,758
   Due from an affiliated company          10,597,524               5,285,479
   Promissory notes                       468,867,008             379,543,070
   Accrued interest on cash equivalents         1,645                  75,850
-------------------------------------------------------------------------------
                                        $ 489,812,777           $ 482,038,157
-------------------------------------------------------------------------------


Liabilities
   Due to the parent company                  338,937                 302,486
   Accouns payable                             49,478                  46,979
   Dividend payable                                 0               1,500,000
-------------------------------------------------------------------------------
                                              388,415               1,849,465
-------------------------------------------------------------------------------

Stockholders' equity
   Preferred stock, $0.01 par value per share;
      10,000,000 shares authorized,
          110 Senior preferred shares issued
          and outstanding                           1                       1
        300,000 Series A shares isued and
          outstanding                           3,000                   3,000

     Common stock, $0.01 par value per share;
        1,000 shares authorized,
          100 shares issued and outstanding         1                       1


     Additional paid-in capital           476,761,014             476,761,014

     Retained earnings                     12,660,346               3,424,676
-------------------------------------------------------------------------------
                                          489,424,362             480,188,692
-------------------------------------------------------------------------------

                                          489,812,777             482,038,157
-------------------------------------------------------------------------------
</TABLE>

See accompanying notes to financial statements.

                                     - 1 -
<PAGE>

NB CAPITAL CORPORATION

STATEMENTS OF INCOME

(Unaudited)

<TABLE>
<CAPTION>
                                            Three-month periods ended               Nine-Month periods ended
                                                   September 30,                           September 30,
(in U.S. Dollars)                           2001                  2000              2001                2000
------------------------------------------------------------------------------------------------------------------
<S>                                     <C>                  <C>                <C>                  <C>

Revenue
        Interest income
          Cash equivalents              $  325,527           $  1,407,683       $  1,450,804         $  3,475,193
          Promissory notes              10,670,556              8,050,951         27,770,415           24,314,320
------------------------------------------------------------------------------------------------------------------
                                        10,996,083              9,458,634         29,221,219           27,789,513
------------------------------------------------------------------------------------------------------------------

Expenses
        Servicing and advisory fees        338,942                300,367          1,012,011              905,657
        Legal and other professional fees   62,461                 35,154            162,674              251,491
------------------------------------------------------------------------------------------------------------------
                                           401,403                335,521          1,174,685            1,157,148
------------------------------------------------------------------------------------------------------------------
Net income                              10,594,680              9,123,113         28,046,534           26,632,365

Preferred stock dividends                6,270,288              6,270,627         18,810,864           18,811,880
------------------------------------------------------------------------------------------------------------------
Income available to common stockholders  4,324,392              2,852,486          9,235,670            7,820,485
------------------------------------------------------------------------------------------------------------------
Weighted average number of common
  shares outstanding                           100                    100                100                   100
------------------------------------------------------------------------------------------------------------------
Earnings per common share - basic           43,244                 28,525             92,357                78,205
------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.

                                      - 2 -

<PAGE>

NB CAPITAL CORPORATION

STATEMENTS OF STOCKHOLDERS' EQUITY

(Unaudited)
<TABLE>

<CAPTION>
                                                 Three-month periods ended       Nine-month periods ended
                                                        September 30                    September 30
(in U.S. dollars)                                    2001           2000              2001          2000
-----------------------------------------------------------------------------------------------------------
<S>                                               <C>             <C>               <C>             <C>

PREFERRED STOCK
   Balance, beginning and end of period           $ 3,001         $ 3,001            $3,001         $3,001
-----------------------------------------------------------------------------------------------------------

COMMON STOCK AND PAID-IN CAPITAL
   Balance, beginning and end of period      476,761,015     476,761,015        476,761,015     476,761,015
-----------------------------------------------------------------------------------------------------------

RETAINED EARNINGS
   Balance, beginning of period                8,335,954       8,874,402          3,424,676       3,906,403
   Net income                                 10,594,680       9,123,113         28,046,534      26,632,365
   Preferred stock dividends                  (6,270,288)     (6,270,627)       (18,810,864)    (18,811,880)
-----------------------------------------------------------------------------------------------------------
   Balance, end of period                     12,660,346      11,726,888         12,660,346      11,726,888
-----------------------------------------------------------------------------------------------------------

TOTAL STOCKHOLDERS' EQUITY                   489,424,362     488,490,904        489,424,362     488,490,904
-----------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.

                                      - 3 -

<PAGE>

NB CAPITAL CORPORATION

STATEMENTS OF CASH FLOWS

(Unaudited)

<TABLE>
<CAPTION>
                                                        Nine-month periods ended
                                                               September 30,
(in U.S. dollars)                                       2001                 2000
--------------------------------------------------------------------------------------

OPERATING ACTIVITIES
<S>                                                   <C>                <C>

Net Income                                            $ 28,046,534     $  26,632,365
  Items not affecting cash resources
        Due from an affiliated company                  (5,312,045)       16,953,110
        Due to the parent company                           36,451           (27,440)
        Accounts payable                                     2,499             7,790
        Accrued interest receivable on cash equivalents     74,205            53,595
--------------------------------------------------------------------------------------
Net cash provided by operating activities               22,847,644        43,619,420
--------------------------------------------------------------------------------------
FINANCING ACTIVITIES

Dividends                                              (20,310,864)      (21,811,880)
--------------------------------------------------------------------------------------
Net cash used in financing activities                  (20,310,864)      (21,811,880)
--------------------------------------------------------------------------------------

INVESTING ACTIVITIES
Investment in promissory notes                        (284,500,923)     (166,159,779)
Repayments of promissory notes                         195,176,985       150,908,364
--------------------------------------------------------------------------------------
Net cash provided by (used in) investing activities    (89,323,938)      (15,251,415)
--------------------------------------------------------------------------------------

Cash position, beginning of period                      97,133,758        58,048,336
--------------------------------------------------------------------------------------
Cash position, end of period                            10,346,600        64,604,461
--------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------
See accompanying notes to financial statements
</TABLE>
                                     - 4 -
<PAGE>

NB CAPITAL CORPORATION

NOTES  TO  THE  FINANCIAL  STATEMENTS
September 30, 2001
(unaudited)
(in U.S. dollars)

1) Incorporation and nature of operations

     NB Capital  Corporation  (the  "Company") was  incorporated in the State of
     Maryland  on August  20,  1997.  The  Company's  principal  business  is to
     acquire,  hold,  finance and manage  mortgage  assets.  The Company issued,
     through an  Offering  Circular  dated  August  22,  1997,  $300  million of
     preferred  stock and  simultaneously,  National Bank of Canada,  the parent
     company,  made a capital  contribution  in the amount of $183 million.  The
     Company  used the  aggregate  net of  proceeds  of $477  million to acquire
     promissory notes of NB Finance, Ltd., a wholly-owned subsidiary of National
     Bank of Canada.

2) Significant accounting policies

     Financial statements

     The  financial  statements  are  prepared  in  accordance  with  accounting
     principles  generally  accepted  in the United  States of  America  and are
     expressed in U.S. dollars.

     The  interim  financial  statements  for the three  months and nine  months
     periods are unaudited,  however,  the financial  statements include, in the
     opinion of management,  all adjustments  necessary for a fair presentation.
     The unaudited  financial  statements should be read in conjunction with the
     audited financial  statements included in the company's annual report filed
     on form 10-K.  The results of the interim  financial  statements may not be
     indicator of the results anticipated in the full year.

     Income taxes

     The  Company  has  elected to be taxed as a Real  Estate  Investment  Trust
     ("REIT")  under  the  Internal  Revenue  Code  of  1986,  as  amended,  and
     accordingly,  is generally not liable for United States  federal income tax
     to the extent that it distributes at least 95% of its taxable income to its
     stockholders,  maintains  its  qualification  as a REIT and  complies  with
     certain other requirements.

     Per share data

     Basic  earnings per share with  respect to the Company for the  three-month
     and nine-month periods ended September 30, 2001 and 2000 are computed based
     upon the weighted  average number of common shares  outstanding  during the
     period.

     Estimates

     The  preparation  of financial  statements  in conformity  with  accounting
     principles  generally  accepted  in the United  States of America  requires
     management  to make  estimates  and  assumptions  that affect the  reported
     amounts of assets and liabilities  and disclosure of contingent  assets and
     liabilities  at the  date of the  financial  statements  and  the  reported
     amounts of  revenues  and  expenses  during the  reporting  period.  Actual
     results could differ from those estimates.

                                     - 5 -

<PAGE>

NB CAPITAL CORPORATION

NOTES  TO  THE  FINANCIAL  STATEMENTS
September 30, 2001
(unaudited)
(in U.S. dollars)

3) Promissory notes

     The Company entered into loan agreements evidenced by promissory notes with
     NB  Finance,   Ltd.,  an  affiliated  company.  The  promissory  notes  are
     collateralized only by mortgage loans that are secured by residential first
     mortgages and insured by the Canada Mortgage and Housing Corporation.

     The promissory notes have maturities ranging from October 2001 to September
     2006, at rates ranging from 7.312% to 10.211%, with a weighted average rate
     of approximately 8.273% per annum.

     These rates  approximate  market interest rates for loans of similar credit
     and maturity  provisions  and,  accordingly,  management  believes that the
     carrying value of the promissory notes receivable  approximates  their fair
     value.

<TABLE>
     <S>                                                                      <C>

     Promissory notes as of June 30, 2001                                     $  465,313,188
     Acquisitions                                                                 55,963,732
     Principal repayments                                                        (52,409,912)
     ----------------------------------------------------------------------------------------
     Promissory notes as of September 30, 2001                                $  468,867,008
     ---------------------------------------------------------------------------------------
</TABLE>

     The scheduled principal repayments as of September 30, 2001 are as follows:


                                           2001         $33,345,922
                                           2002          42,427,861
                                           2003          96,666,046
                                           2004         143,379,093
                                           2005         105,444,169
                                           2006          47,603,917

4) Transactions with an affiliated company

     During the quarters  ended  September 30, 2001 and September 30, 2000,  the
     Company earned  interest from NB Finance,  Ltd. on the promissory  notes in
     the amount of $10,670,556 and $8,050,951, respectively (see Note 3).

     The amount of  $10,597,524  due from an affiliated  company as of September
     30, 2001 and  $5,285,479  as of December 31, 2000,  represent  interest and
     principal repayments due on the promissory notes.

5) Transactions with the parent company

     The  Company  entered  into  agreements  with  National  Bank of  Canada in
     relation to the administration of the Company's operations.  The agreements
     are as follows:

     Advisory agreement

     In exchange for a fee equal to $25,000 per year, payable in equal quarterly
     installments,   National   Bank  of  Canada   will   furnish   advice   and
     recommendations  with respect to all aspects of the business and affairs of
     the Company.  During the  three-month  periods ended September 30, 2001 and
     September 30, 2000, fees of $6,250 were charged to the Company.

     Servicing agreement

     National Bank of Canada will service and administer  the  promissory  notes
     and the  collateralized  mortgage  loans  and will  perform  all  necessary
     operations in connection with such servicing and administration.

                                     - 6 -
<PAGE>

NB CAPITAL CORPORATION

NOTES  TO  THE  FINANCIAL  STATEMENTS
September 30, 2001
(unaudited)
(in U.S. dollars)

     The fee  will  equal  to  one-twelfth  (1/12)  of  0.25%  per  annum of the
     aggregate  outstanding  balance of the collateralized  mortgage loans as of
     the last day of each  calendar  month.  For the  three-month  periods ended
     September 30, 2001 and September 30, 2000, the average  outstanding balance
     of the  collateralized  mortgage loans were  $550,462,170 and $481,649,108,
     respectively.  During the three-month  periods ended September 30, 2001 and
     September  30,  2000,  fees of $332,692  and  $294,117  respectively,  were
     charged to the Company.

     Custodian agreement

     National  Bank  of  Canada  will  hold  all   documents   relating  to  the
     collateralized   mortgage  loans.  During  the  three-month  periods  ended
     September  30,  2001 and  September  30,  2000,  no fee was  charged to the
     Company.

6) Stockholders' equity

     Common stock

     The Company is  authorized  to issue up to 1,000 shares of $ 0.01 par value
     common stock.


     Preferred stock

     The Company is  authorized  to issue up to  10,000,000  shares of $0.01 par
     value preferred stock as follows:

     o    300,000  shares   authorized   and  issued  as  8.35%   Non-cumulative
          Exchangeable  Preferred Stock, Series A, non-voting,  ranked senior to
          the common stock and junior to the Adjustable Rate  Cumulative  Senior
          Preferred  Shares,  with a  liquidation  value of  $1,000  per  share,
          redeemable  at the  Company's  option on or after  September  3, 2007,
          except  upon the  occurrence  of  certain  changes  in tax laws in the
          United States of America and in Canada, on or after September 3, 2002.

     o    Each Series A share is  exchangeable,  upon the  occurrence of certain
          events,  for one newly  issue  8.45%  Non-cumulative  First  Preferred
          Share, Series Z, of National Bank of Canada.

     o    These  Series A shares  are traded in the form of  Depositary  Shares,
          each representing a one-fortieth interest therein.

     o    1,000  shares  authorized  and 110 shares  issued as  Adjustable  Rate
          Cumulative Senior Preferred Shares,  non-voting,  ranked senior to the
          common stock and to the 8.35%  Non-cumulative  Exchangeable  Preferred
          Stock,  Series  A,  with a  liquidation  value of  $3,000  per  share,
          redeemable at the Company's  option at any time and retractable at the
          holder's  option on December 30, 2007 and every  ten-year  anniversary
          thereof.

7) Recent Pronouncements

     In July 2001, the Financial Accounting Standards Board issued Statements of
     Financial Accounting  Standards No. 141, Business  Combinations ("FAS 141")
     and No. 142,  Goodwill and Other  Intangible  Assets  ("FAS 142").  FAS 141
     requires  all  business  combinations  initiated  after June 30, 2001 to be
     accounted  for using the  purchase  method.  Under  FAS 142,  goodwill  and
     intangible  assets with  indefinite  lives are no longer  amortized but are
     reviewed  annually (or more frequently if impairment  indicators arise) for
     impairment.  Separable  intangible  assets  that  are  not  deemed  to have
     indefinite lives will continue to be amortized over their useful lives (but
     with no maximum  life).  The Company has concluded that the adoption of the
     provisions  of FAS 141 and 142 will have no material  effect on its results
     of operations and financial position.

                                     - 7 -

<PAGE>

ITEM 2.  MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL  CONDITIONS AND
         RESULTS OF OPERATIONS

The Company's  principal  business  objective is to acquire,  hold,  finance and
manage  assets  consisting  of  obligations  secured by real property as well as
other qualifying REIT assets ("Mortgage Assets").  The Company has elected to be
taxed as a REIT  under  the  Internal  Revenue  Code of 1986,  as  amended  and,
accordingly, is generally not liable for United States federal income tax to the
extent  that it  distributes  at least 95% of its  taxable  income,  subject  to
certain adjustments, to its stockholders.

Results of operations:

For the three-month periods ended September 30, 2001 and September 30, 2000, the
Company  reported  net  income  of  $10,594,680  and  $9,123,113,  respectively.
Revenues, which were comprised entirely of interest income, were $10,996,083 and
$9,458,634 respectively, and expenses were $401,403 and $335,521,  respectively.
Since the Company has elected to be taxed as a REIT,  no income tax was recorded
during the period.

Ninety-seven  percent of revenues for the three-month period ended September 30,
2001 and  eighty-five  percent of  revenues  for the  three-month  period  ended
September  30, 2000 were derived from the Mortgage  Assets issued by NB Finance,
Ltd., an affiliated  company ("NB  Finance").  The Mortgage  Assets issued by NB
Finance are  collateralized  by the "Mortgage  Loans" that consist of thirty-six
pools of  residential  first  mortgages  insured by Canada  Mortgage and Housing
Corporation  and which are  secured by real  property  located  in  Canada.  The
balance of the revenues result from interest on cash equivalents.

Expenses for the three-month  periods ended September 30, 2001 and 2000, totaled
$401,403  and   $335,521,   respectively,   of  which   $338,942  and  $300,367,
respectively,  represent  servicing  and advisory  fees paid to National Bank of
Canada,  the  Company's  direct  parent (the "Bank")  pursuant to the  Servicing
Agreement  between the Bank and the Company (the "Servicing  Agreement") and the
Advisory Agreement between the Bank and the Company (the "Advisory  Agreement"),
whereby  the  Bank  performs  all  necessary   operations  in  connection   with
administering  the Mortgage  Assets issued by NB Finance and the Mortgage Loans.
Legal and other professional fees include payment to the transfer agent,  annual
fees to Security Exchange Commission and other professional fees.

During the  three-month  period ended September 30, 2001, the Board of Directors
of the Company authorized dividends, in the aggregate,  of $6,270,288,  compared
to  $6,270,627  for the  three-month  period ended  September  30, 2000,  on its
Preferred Stock (i.e.,  Adjustable Rate Cumulative  Senior Preferred Shares (the
"Senior  Preferred  Shares")  and 8.35%  Non-cumulative  Exchangeable  Preferred
Stock,  Series  A (the  "Series  A  Preferred  Shares")  and,  accordingly,  the
Depositary Shares. Such dividends were paid on September 28, 2001.

                                     - 8 -

<PAGE>
ITEM 2.  MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL  CONDITIONS AND
         RESULTS OF OPERATIONS (continued)

Capital Resources and Liquidity:

The Company's revenues are derived from its Mortgage Assets. As of September 30,
2001,   $469   million  of   Mortgage   Assets   issued  by  NB   Finance   were
over-collaterized  by the C$884 million ($586  million) of Mortgage  Loans.  The
Company  believes  that the amounts  generated  from the payment of interest and
principal on such Mortgage Loans will provide more than sufficient funds to make
full payments with respect to the Mortgage  Assets issued by NB Finance and that
such  payments  will  provide  the  Company  with  sufficient  funds to meet its
operating expenses and to pay quarterly dividends on the Senior Preferred Shares
and the Series A Preferred Shares and,  accordingly,  the Depositary  Shares. To
the extent that the cash flow from its Mortgage  Assets  exceeds those  amounts,
the Company will use the excess to fund the  acquisition of additional  Mortgage
Assets and make distributions on the Common Stock.

The  Company  does not require any capital  resources  for its  operations  and,
therefore,  it is not expected to acquire any capital assets in the  foreseeable
future.

As of  September  30,  2001,  the Company had cash  equivalents  of  $10,346,600
representing 2.1% of total assets, compared to $97,133,758,  representing 20% of
total assets, as of December 31, 2000. The decrease in liquidity is attributable
to investment in Mortgage Assets. It is expected that the Company will invest in
additional Mortgage Assets once cash resources exceed 20% of total assets. While
this  continues to be the Company's  investment  policy,  the Company  maintains
flexibility  in this regard.  On  September  24,  2001,  the Company  bought $56
million in additional  Mortgage Assets in order to reduce  increased  liquidity.
The  liquidity  level is  sufficient  for the  Company to pay fees and  expenses
pursuant to the Servicing Agreement and the Advisory Agreement.

The Company's  principal  short-term  and long-term  liquidity  needs are to pay
quarterly  dividends on the Senior  Preferred  Shares and the Series A Preferred
Shares and, accordingly,  the Depositary Shares, to pay fees and expenses of the
Bank pursuant to the Servicing Agreement and the Advisory Agreement,  and to pay
franchise fees and expenses of advisors, if any.

The  Company  does not have  any  indebtedness  (current  or  long-term),  other
material capital  expenditures,  balloon payments or other payments due on other
long-term obligations. No negative covenants have been imposed on the Company.

Disclosure About Market Risk

Any  market  risk to which  the  Company  would be  exposed  would  result  from
fluctuations in (a) interest rates and (b) currency exchange rates affecting the
interest  payments  received  by the Company in respect of the  Mortgage  Assets
issued  by  NB   Finance.   Since  the   Mortgage   Assets   are   significantly
overcollateralized  by the Mortgage Loans, interest rate fluctuations should not
present  significant  market  risk.  The Company  expects  that the interest and
principal  generated  by the  Mortgage  Loans  should  enable full payment by NB
Finance of all of its  obligations  as they became due. Since the Mortgage Loans
are  guaranteed  by a fixed  ratio  of  exchange,  predetermined  on the date of
purchase and applicable until the maturity of the Mortgage Loans pursuant to the
Mortgage Loan  Assignment  Agreement,  fluctuations  in currency  exchange rates
should not present significant market risk.

                                     - 9 -

<PAGE>

                           PART II. OTHER INFORMATION
                           --------------------------

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

(a)      Exhibits:
                           Exhibit No.       Description

                           11                Computation of Earnings Per Share
                           27                Financial Data Schedule

(b)      Reports on Form 8-K:

         No reports on Form 8-K were filed during the quarter for which this
report is filed.

                                     - 10 -
<PAGE>



                                   SIGNATURES



         Pursuant to the requirements of the Securities Exchange Act of 1934,
         the registrant has duly caused this report to be signed on its behalf
         by the undersigned thereunto duly authorized.

                                        NB CAPITAL CORPORATION

         Date November 15, 2001            /s/  Tom Doss
              -----------------            -------------------------------------
                                           Tom Doss
                                           Chief Financial Officer and Treasurer

                                     - 11 -

<PAGE>


                                   EXHIBIT 11
                                   ----------


                             NB CAPITAL CORPORATION
                        COMPUTATION OF EARNINGS PER SHARE


<TABLE>
<CAPTION>
                                                         Three-month period      Three-month period
                                                               ended                   ended
                                                         September 30, 2001      September 30, 2001

        <S>                                   <C>            <C>                      <C>

        Net income                                           $10,594,680              $ 9,123,113

        Deduct: Senior preferred stock and                     6,270,288                6,270,627
                                                               ---------                ---------
                series A preferred stock
                dividends

                                              (A)             $4,324,392              $ 2,852,486

        Common share outstanding              (B)                    100                      100

        Earnings per share                    (A/B)           $43,243.92              $ 28,524.86
</TABLE>




                                     - 12 -

<PAGE>


EXHIBIT 27

                             NB CAPITAL CORPORATION
                             FINANCIAL DATA SCHEDULE

THIS SCHEDULE CONTAINS SUMMARY FINANCIAL  INFORMATION  EXTRACTED FROM NB CAPITAL
CORPORATION'S  UNAUDITED  BALANCE  SHEET AS OF SEPTEMBER  30, 2001 AND UNAUDITED
STATEMENT  OF INCOME FOR THE QUARTER  ENDED  SEPTEMBER  30, 2001  INCLUDED IN NB
CAPITAL  CORPORATION'S  QUARTERLY  REPORT  ON FORM  10-Q FOR THE  QUARTER  ENDED
SEPTEMBER  30,  2001 AND IS  QUALIFIED  IN ITS  ENTIRETY  BY  REFERENCE  TO SUCH
FINANCIAL STATEMENTS.

                           NB CAPITAL CORPORATION
              Period type                                         3-MOS
              Fiscal year end                                     DEC-31-2001
              Period start                                        JAN-01-2001
              Period end                                          SEP-30-2001
              Cash                                                  10,346,600
              Securities                                                     0
              Receivables                                          479,466,177
              Allowances                                                     0
              Inventory                                                      0
              Current assets                                       489,812,777
              PP&E                                                           0
              Depreciation                                                   0
              Total assets                                         489,812,777
              Current liabilities                                      388,415
              Bonds                                                          0
              Preferred mandatory                                            0
              Preferred                                                  3,001
              Common                                                         1
              Other-SE                                             489,421,360
              Total liability and equity                           489,812,777
              Sales                                                          0
              Total revenues                                        10,996,083
              CGS                                                            0
              Total costs                                                    0
              Other expenses                                           401,403
              Loss provision                                                 0
              Interest expense                                               0
              Income - pre tax                                      10,549,680
              Income - tax                                                   0
              Income - continuing                                   10,549,680
              Discontinued                                                   0
              Extraordinary                                                  0
              Changes                                                        0
              Net income                                            10,549,680
              EPS - primary                                             43,244
              EPS - diluted                                             43,244

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