BANKING IN CEE AND THE
ROLE OF INTERNATIONAL
PLAYERS
July 2006
EXECUTIVE SUMMARY

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

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
All around the CEE region, the banking sector is characterised by widespread relevance of foreign capital. A limited
number of international players considers the region as a second home market. Such international players
are among the top players in several countries of the region and profit from a widespread cross-regional
network.
While structural transformation is almost completed in most of the traditional destinations, additional markets are
gradually opening and represent the new opportunity for international players. In particular, we view Russia,
Turkey, Ukraine as the new frontiers of a regional strategy. The consolidation process at the international level
represents another significant driver for structural transformation in the region, like in the case of the
UniCredit-HVB merger, which brought to the creation of the by far largest player at the regional level and to a
renewed process of consolidation at the single country level.
The CEE region represents a fast growing market of more than 1,000 billion euro of total banking assets, with
still bright prospects for growth, given the persistently favourable macroeconomic environment and relative underpenetration compared to Eurozone countries
Loans financial deepening is increasing, fuelled by both demand and supply factors, resulting in a significant
increase of loans over GDP ratio from 24% to 32% in the 2000-2005 period (CEE12). Lending growth has been
particularly fast in SEE countries and Russia followed by Turkey. Fast lending expansion is expected to
continue, driven by the retail segment and sustained by favourable corporate lending performance. The
fastest dynamic is expected in Russia, Serbia, Turkey and Romania.
Increasing financial deepening on the lending side has been accompanied by substantially stable pattern in
deposits. In the years to come, acceleration of investment activities and portfolio diversification are expected to lead
to a reduction in the deposit over GDP ratio in Central Europe (Poland, the Czech R., Hungary, Croatia and Slovakia)
while still a good dynamic is expected in the rest of the region
Overall, the banking profitability outlook remains positive
2
AGENDA
Evolution of banking systems in CEE
Presence and ranking of international banking
groups in the region
Relevance and positioning of international players at
single country level
3
MORE THAN 1,000 € BLN MARKET IN TERMS OF TOTAL ASSETS, WITH LARGELY
INTERNATIONAL BANKS AND STILL IMPORTANT GROWTH OPPORTUNITIES
2005i
No. of banks(1)
Total Assets(3)
Market share
Foreign banks
TOP
3(2)
Total Gross Loans
Total Deposits
€ bln
% of GDP
€ bln
% of GDP
€ bln
% of GDP
EU Members
61(4)
70%(4)
37%(4)
152
60%
77
30%
99
39%
34
84%(5)
38%
75
87%
46
53%
37
43%
Czech Republic
36
85%(6)
56%
102
99%
40
39%
65
63%
Slovakia
23
98%
47%
37
96%
14
36%
21
55%
Slovenia
22(6)
19%(6)
50%
29
107%
15
56%
16
57%
Estonia
13
99%
88%
12
112%
6
56%
5
47%
Latvia
23
58%
54%
16(7)
123%
7
55%
4
31%
Lithuania
12
86%(8)
67%
13
63%
7
32%
6
28%
Poland
Hungary
EU Candidates
Croatia
34
91%
54%
35
114%
21
68%
19
61%
Bulgaria
34
76%
34%(9)
17
78%
9
43%
10
49%
Romania
39
88%(10)
50%(11)
35(7)
45%
17
22%
22
28%
Turkey
31
19%
45%
249
81%
96(16)
31%
152
50%
Others
Russia
1,205(15)
9%
39%
285(7)
45%
159
25%
156
25%
Serbia
40(12)
66%
36%
9
48%
5
27%
5
25%
Bosnia-Herzegovina
33
89%/98%(13)
54%(14)
6(7)
81%
4
51%
4
47%
Ukraine
165
n.a.
n.a.
36
50%
23
32%
18
25%
1,805
46%(17)
50%(18)
1,108
66%
545
33%
638
38%
6,403(6)
25%(6)
-
17,895
224%
9,141(16)
115%
7,395
93%
Total CEE 17
Euro Area
4
Sources: local Central Banks, ECB, Banking Associations and Supervisory Authorities and Unicredit-NE Research Network
(i) All banking systems’ figures converted using eop exchange rates vs €; nominal GDP converted using avg exchange rates
(1) Including commercial and savings banks, foreign bank branches while excl. cooperatives; (2) Based on unconsolidated figures
unless otherwise stated; market shares are based on net assets figures according to local accounting standards; (3) Figures are
expressed as net values unless otherwise stated; (4) As of Q3 2005; (5) Based on gross assets; (6) As of 2004; (7) Gross figures; (8)
Based on share capital of Lithuanian Banks owned by foreign investors; (9) Based on IAS results; (10) Including BCR; (11) Including
HVB Tiriac & UCR proforma; (12) Excluding OFIs; (13) Data refer to Rep of Srpska; (14) For Hypo Alpe Adria, market share based on
Group’s results; (15) Excluding non-bank credit organisations; (16) Based on net figures; (17) Excluding Ukraine; (18) Unweighted
average
DEMAND AND SUPPLY FACTORS (BOTH STRUCTURAL AND CYCLICAL) BEHIND
LENDING GROWTH
Total loans’ volumes growth(2)
(2000 =100, in € terms)
Evolution of banking loans in CEE-12(1)
(% of GDP)
CAGR
’00-’08
1,500
50%
Central Europe (Poland,Czech R.,Hungary,Slovakia)
Russia
39% p.a.
SEE (Croatia,Slovenia,Serbia,Bosnia,Romania,Bulgaria)
40%
Russia
40%
37%
Turkey
35%
32%
1,000
28%
30%
24%
25%
24%
22%
20%
500
SEE
21% p.a.
Turkey
12% p.a.
10%
CE
12% p.a.
0
0%
2000 2001 2002 2003 2004 2005 2006f 2007f 2008f
2000 2001 2002 2003 2004 2005 2006f 2007f 2008f
5
Sources: Unicredit-NE Research Network based on local Central Banks’ data
(1) Including Poland, Czech R., Hungary, Slovakia, Slovenia, Romania, Bulgaria, Croatia,
Bosnia-Herzegovina, Serbia, Russia and Turkey; excl. Ukraine and the baltics;
(2)Total loans include general govt, non-financial corporations and retail and where
available non-profit institutions serving households (NPISHs) and Non-MFIs
TWO DIGITS LENDING GROWTH LEADING TO FAST INCREASES IN BANKING
PENETRATION ON THE ASSETS SIDE (+2.7% OF GDP ON AVERAGE PER YEAR),
HOWEVER WITH STRONG CROSS COUNTRIES DIFFERENCES
Evolution of banking
loans1
% country over
CEE loans
by country (% of GDP)
2008
Poland
Turkey
Croatia
Russia
Bulgaria
Czech Republic
Hungary
Romania
Slovakia
Bosnia
Slovenia
Serbia
CEE-12
100
2005
2008
79
80
78
68
63
62
60
50
40
36
30
32
51
46
43
42
56
53
42
39
40
36
32
31
31
25
42
27
22
20
0
Poland
Turkey
Croatia
Russia Bulgaria Czech R. Hungary Romania Slovakia Bosnia Slovenia Serbia
6
Sources: Unicredit-NE Research Network based on local Central Banks’ data
(1) Total loans include general govt, non-financial corporations, households
and where available NPISHs and Non-MFIs
CEE-12
11%
16%
3%
45%
2%
6%
7%
4%
2%
1%
3%
1%
-
Total loans
CAGR '05-'08
(loc. currency)
10%
27%
13%
34%
16%
14%
13%
25%
14%
17%
19%
34%
24%
RETAIL LENDING TO REMAIN THE MAIN DRIVER OF VOLUMES GROWTH, WITH
GOOD MACRO PROSPECTS SUPPORTING A FAVOURABLE CORPORATE LENDING
PERFORMANCE
Expected evolution of retail loans1
(CAGR ’05-’08, local currency)
Expected evolution of corporate loans
(CAGR ’05-’08, local currency)
CEE-12
CEE-12
Poland
Poland
Turkey
Turkey
Croatia
Croatia
Russia
Russia
Bulgaria
Bulgaria
Czech R.
Czech R.
Hungary
Hungary
Romania
Romania
Slovakia
Slovakia
Bosnia
Bosnia
Slovenia
Slovenia
Serbia
Serbia
0%
10%
20%
30%
40%
50%
0%
60%
7
Sources: Unicredit-NE Research Network based on local Central Banks’ data
(1) Including households and (when available) NPISHs
10%
20%
30%
40%
RELATIVELY STABLE BANKING PENETRATION ON THE LIABILITIES SIDE, …
Total deposits’ volumes growth(2)
(2000 =100, in € terms)
Evolution of banking deposits in CEE-12(1)
(% of GDP)
CAGR
’00-’08
1,000
60%
Central Europe (Poland,Czech R.,Hungary,Slovakia)
Russia
32% p.a.
SEE (Croatia,Slovenia,Serbia,Bosnia,Romania,Bulgaria)
Russia
39%
40%
35%
32%
34%
34%
39%
39%
41%
Turkey
36%
500
SEE
17% p.a.
20%
Turkey
11% p.a.
CE
9% p.a.
0
0%
2000 2001 2002 2003 2004 2005 2006f 2007f 2008f
2000 2001 2002 2003 2004 2005 2006f 2007f 2008f
8
Sources: Unicredit-NE Research Network based on local Central Banks’ data
(1) Including Poland, Czech R., Hungary, Slovakia, Slovenia, Romania, Bulgaria, Croatia,
Bosnia-Herzegovina, Serbia, Russia and Turkey; excluding Ukraine and the baltics;
(2) Total deposits include general govt, non-financial corporations, households and when
available NPISHs and Non-MFIs
… WITH DIFFERENT PATTERNS AMONG COUNTRIES
Evolution of banking deposits by country (% of
% country over
Total deposits
CEE deposits
GDP)1
2008
Poland
Turkey
Croatia
Russia
Bulgaria
Czech Republic
Hungary
Romania
Slovakia
Bosnia
Slovenia
Serbia
CEE-12
100
2005
2008
80
61
60
63
58
60
50
40
39
57 58
55
55
54
55 53
49
47
43 43
41
39
38
33
35
32
28
25
25
20
0
Poland
Turkey
Croatia
Russia
Bulgaria Czech R. Hungary Romania Slovakia
Bosnia
Slovenia
Serbia
CEE-12
9
Sources: Unicredit-NE Research Network based on local Central Banks’ data
(1) Total deposits include general govt, non-financial corporations, households and where available NPISHs and Non-MFIs
13%
20%
2%
41%
2%
8%
5%
4%
3%
1%
2%
1%
-
CAGR '05-'08
(loc. currency)
7%
19%
7%
32%
16%
4%
7%
16%
7%
14%
7%
29%
17%
GOOD PROFITABILITY OF THE CORPORATE SECTOR EXPECTED TO SUSTAIN
GROWTH IN DEPOSITS’ VOLUMES AT THE REGIONAL LEVEL WITH RETAIL PLAYING A
SIGNIFICANT ROLE IN RUSSIA, ROMANIA, BULGARIA, SERBIA, BOSNIA AND TURKEY
Expected evolution of retail deposits1
(CAGR ’05-’08, local currency)
Expected evolution of corporate deposits
(CAGR ’05-’08, local currency)
CEE-12
CEE-12
Poland
Poland
Turkey
Turkey
Croatia
Croatia
Russia
Russia
Bulgaria
Bulgaria
Czech R.
Czech R.
Hungary
Hungary
Romania
Romania
Slovakia
Slovakia
Bosnia
Bosnia
Slovenia
Slovenia
Serbia
Serbia
0%
10%
20%
30%
0%
40%
10
Sources: Unicredit-NE Research Network based on local Central Banks’ data
(1) Including households and (when available) NPISHs
10%
20%
30%
40%
WE EXPECT THE REGION TO CONTINUE TO DELIVER GOOD RESULTS IN TERMS
OF BANKING PROFITABILITY
CAGR ’05-’08
(local
currency)
Net Interest
Income
Net noninterest income
Net
revenues
Net
profit(1)
Poland
10%
9%
9%
10%
Turkey
5%
10%
7%
14%
€ bn
Croatia
4%
9%
6%
10%
35.0
Russia
24%
24%
24%
21%
Bulgaria
12%
14%
12%
13%
Czech R.
5%
9%
7%
7%
Hungary
7%
12%
9%
8%
Romania
10%
19%
15%
11%
Slovakia
1%
16%
7%
9%
CEE-9
13%
14%
13%
15%
CAGR 2005-08: +15.2%
NET PROFITS
Before tax / extr items
€32.0bn
€28.4bn
30.0
€25.4bn
25.0
20.0
€21.0bn
€16.5bn
% country over CEE-9 NetProfit(1) (2005)
Romania Slovakia
3%
Hungary 3%
Poland
7%
13%
Czech R.
7%
Turkey
Bulgaria
26%
2%
15.0
Croatia
3%
0.0
Russia
35%
11
Sources: Central Banks and Unicredit-NE Research Network
(1)Net Profit for the Banking Sector is before tax and extraordinary items.
10.0
5.0
2004
2005
2006f
2007f
2008f
AGENDA
Evolution of banking systems in CEE
Presence and ranking of international banking
groups in the region
Relevance and positioning of international players at
single country level
12
A SMALL NUMBERS OF INTERNATIONAL PLAYERS DOMINATING THE MARKET
WITH ROUGHTLY 26% MARKET SHARE IN TERMS OF ASSETS…
Proforma 2005, as of perimeter May 2006i
Consol. Assets (€ bln)i
Unicredit
86.2(1)
39.4
Erste
(3)
OTP
42.3(5)
40.7
RZB
Intesa
4,379(1)
1,744
42.7
KBC
SocGen
48.7(4)
26.9
20.1
(8)
30.1(7)
22.1(9)
(11)
19.0 19.1
Net Profit before min.int. (€ mln)ii
Total Revenues (€ mln)
(3)
1,325(1)
530
2,406(4)
(3)
1,435
1,083
(8)
2,026(5)
490
1,212(9)(10)
301
(11)
1,545 1,561
(8)
608
13
5
15
9
531(7)
326(9)
609(11)
(2)
6(4)
5
481(5)
460
1,551(7)
Source: Unicredit-NE Research Network; numbers converted using avg and eop ex. rates from UIC for P&L and BL figures,
respectively
(i)
100% of total assets, revenues and profit after tax (before min.interests) for controlled Companies (stake > 50%) and share
owned for non controlled companies; proforma results include also banks acquired during 2005 and 2006;
(ii) After tax, before minority interest
(iii) Including direct and indirect presence in the 21 CEE countries, excluding representative offices
711(4)
17
556
1,928
1,898
Countries of presenceiii
7
5
(6)
10(7)
9(9)
6(11)
(1) Excluding Splitska Banka, Vienna Profit Center and other UCI’s minorities (Unicredit Securities&Unicredit leasing BG) while
including proforma Nova Banjalucka Banka (full year), Hypo Stavebni Sporitelna and 50% of KFS-Yapi combined entity (full 2005
normalised for Yapi); BankTiriac, Hebros and Eksimbanka consolidated proforma for the full year; (2) Including Azerbaijan; (3)
Including proforma Erste Serbia; (4) Including proforma BCR; (5) Including proforma Impexbank; Bank Aval fully consolidated since
1st Oct 2005; (6) Excluding Kosovo; (7) Including proforma Splitska Banka; (8) Including proforma KMB and Intesa Beograd; (9)
Including proforma Ukrsotsbank and UPI Banka (as of Sep ’05); (10) Revenues for KMB and UPI Banka n.a.; (11) Including
proforma Niska Banka and Zepter Banka; profits are before tax; P&L of OTP Hrvatska doesn’t include Q1 2005
INTERNATIONAL PLAYERS PREVAIL ALL OVER THE REGION WITH STRUCTURAL
TRANSFORMATION STILL ONGOING IN RUSSIA, TURKEY AND SLOVENIA
CEE Total assets2 by ownership, 2005*
Market share of foreign-owned banks1 (% of total banking system assets, 2005)
Foreignowned
46%
91%
85% 84% 88%
99%
98% 89%
86%
76%
70%
66%
58%
36%(3)
19%
9%
Privately
&State
owned
54%
*Excl. Russia and Turkey foreign ownership  78%
14
Sources: Unicredit-NE Research Network based on local Central Banks’ data
(1) For Czech R. and Slovenia figures refer to end of 2004; for Lithuania, figures refer to share capital of Lithuanian
Banks owned by foreign investors; the ratio is computed considering 100% of assets when shareholding > 50%
(2) Excluding Ukraine;
(3) Including total assets controlled by non-residents with less than 50% of management rights
Lithuania
Latvia
Estonia
Serbia
Slovenia
Bosnia
Slovakia
Romania
Hungary
Czech R.
Bulgaria
Russia
Croatia
Turkey
Poland
19%
… AND STRONG FINANCIAL PENETRATION AND CEE FRANCHISE WITH
AROUND 12,000 BRANCHES AND 230,000 EMPLOYEES
Proforma 2005, as of perimeter May 2006i
Branches
UniCredit
Erste
KBC
2,956(1)
Intesa
OTP
Loans+Deposits (€ bln)ii
65.0(1)
99.7(1)
32.2(2)
1,668(2)
1,237
RZB
SocGen
Employees (ths)
28.6
1,027(4)
16.7(4)
24.9(5)
1,286(5)
1,000(6)
14.7(6)(7)
15
Source: Unicredit-NE Research Network
(i)
100% of branches (excluding representative offices) and employees; for Unicredit, figures on employees are FTE;
(ii) Only loans/deposits to/from customers (excluding amounts to/from banks); figures for loans are net values
46.1
48.7(3)
2,633(3)
55.3(2)
51.1(3)
34.5(4)
27.1(5)
22.1(6)
(1) Excluding Splitska Banka while including Nova Banjalucka Banka, Eksimbanka (employees as of Sep ’05) and 100% of KFS-Yapi
branches and employees; including Splitska, branches and employees would be 3,068 and 66.3 ths, respectively; figures as of dec
2005 recasted end of March; figures for loans and deposits do not include Vienna Profit Center; (2) Including proforma BCR and Erste
Bank Serbia; (3) Including proforma Impexbank; (4) Including proforma Splitska banka; employees of SG Yugoslav bank n.a. (5)
Including proforma KMB, Intesa Beograd, Ukrsotsbank and UPI banka; (6) Including proforma Niska banka, Zepter banka and OTP
Hrvatska; (7) Employees of Zepter banka n.a.
INTERNATIONAL PLAYERS IN THE FIELD WITH DIFFERENT BACKGROUND AND
MARKET APPROACH
Perimeter as of May 2006
UNICREDIT
PL
TK
HR
CZ









ERSTE
KBC
RZB

SOCGEN



I
INTESA
R
R

BG
HU




OTP
CITIGROUP
RU
RO
SK BiH







I


AL AJ(2) KZ(3) MK BY(4) BLT(5)
R

M


FRY(1) UA
SI


I

M

R



R

R(6)
R



Among the top 5 banks in the country
in terms of total assets
16
R
Representative Office
I
Indirect presence
Note: (1) Serbia & Montenegro (2) Azerbaijan (3) Kazakhstan (4) Belarus; (5) Estonia, Latvia and Lithuania; (6) Lithuania
Source: Banks’ Annual Report and Investor Relations
M
Minority stake
Presence
STRATEGIC POSITIONING OF INTERNATIONAL GROUPS IN THE CEE REGION –
FOCUSED VS WIDESPREAD STRATEGY
Strategic positioning: country of operation and size in each market
(size = total assets controlled in the region)
12
10
8
6
4
2
0
0
10
5
15
Number of countries of active presence(i)
17
Source: Unicredit-NE Research Network
(i) Including both direct and indirect presence
20
AGENDA
Evolution of banking systems in CEE
Presence and ranking of international banking groups
in the region
Relevance and positioning of international players
at single country level
18
TOP BANKS IN BOSNIA & HERZEGOVINA
Total Assets1, market share and ownership
Market share2
Total Assets LAS (€bn)
UniCredit Zagrabačka
Banka+HVB Central Profit
Banka (proforma)
(3)
25%
(Unicredit Group)
21%
(Raiffeisen International)
0,8
13%
(Unicredit Group)
(3)
1,5
1,3
Raiffeisen Bank BiH
UniCredit Zagrebačka Banka
Majority shareholder
HVB Central Profit Banka
0,7
12%
(Unicredit Group)
Hypo Alpe-Adria Mostar
0,7
11%
(Hypo Alpe-Adria-Group)
8%
(Hypo Alpe-Adria-Group)
4%
(Intesa Group)
Hypo Alpe-Adria Banja Luka
UPI banka
0,5
0,2
19
Source: Unicredit-NE Research Network based on local banks’ financial statements and press releases
(1) Total assets according to local accounting standards based on unconsolidated results; for Nova Banjalucka Banka (NBB) figures are
according to IFRS and expressed as gross values thus the overall market share may be overestimated due to the different standard
(2) Based on net unconsolidated figures for total banking system’s assets according to local accounting standards;
(3) Including proforma Nova Banjalucka Banka
TOP BANKS IN CROATIA
Total Assets1, market share and ownership
Market share2
Total Assets LAS (€bn)
Zagrebačka Banka
8,6
6,4
Privredna Banka Zagreb
Erste & Steiermarkische Bank
4,1
Raiffeisenbank Austria
3,9
HVB Splitska
3,2
Hypo Alpe-Adria-Bank
OTP Hrvatska
Slavonska banka
2,6
1,2
1,0
20
Source: Unicredit-NE Research Network based on Banka Magazine figures
(1) Total assets according to local accounting standards based on unconsolidated results;
(2) Based on net unconsolidated figures for total banking system’s assets according to local accounting standards
Majority shareholder
24%
(Unicredit Group)
18%
(Intesa Group)
12%
(Erste Group)
11%
(Raiffeisen International)
9%
(Unicredit Group until June ’06
Société Générale Group as of July)
7%
(Hypo Alpe-Adria-Group)
3%
(OTP Group)
3%
(Hypo Alpe-Adria-Group)
TOP BANKS IN BULGARIA
Total Assets1, market share and ownership
Market share2
Total Assets IAS (€bn)
Bulbank+HVB Bank
Biochim+Hebros Bank (proforma)
3,5
DSK bank
2,3
Bulbank
1,8
Majority shareholder
21%
(Unicredit Group)
14%
(OTP Group)
11%
(Unicredit Group)
HVB Bank Biochim & Hebros Bank
1,7
10%
(Unicredit Group)
UBB
1,6
10%
(NBG)
9%
(Raiffeisen International)
8%
(Majority private capital)
5%
(EFG Eurobank)
Raiffeisen Bulgaria
1,4
1,3
First Investment Bank
Bulgarian Post Bank
0,9
21
Source: Unicredit-NE Research Network based on local banks’ financial statements and BNB
(1)
Total assets according to international accounting standards based on consolidated results; for DSK bank, figures are
according to hungarian IAS
(2)
Based on net unconsolidated figures for total banking system’s assets according to international accounting standards;
TOP BANKS IN ESTONIA
Total Assets1, market share and ownership
Market share2
Total Assets IAS (€bn)
6,94
Hansapank
Eesti Ühispank
2,54
Nordea Bank
1,06
0,90
Sampo Pank
Eesti
Krediidipank
Tallinna
Äripanga
0,20
0,04
59%
Majority shareholder
(Swedbank)
21%
(SEB)
~9%
(Nordea Group)
8%
(Sampo Group)
2%
(Latvian Business Bank)
0.3%
22
Source: Unicredit-NE Research Network based on local banks’ financial statements and Central Bank
(1) Total assets according to international accounting standards based on unconsolidated results; for Nordea Bank
figures are consolidated and thus overall market share may be overestimated due to different standard
(2) Based on net unconsolidated figures for total banking system according to international accounting standards
(Majority private local capital)
TOP BANKS IN THE CZECH REPUBLIC
Total Assets1, market share and ownership
Market share2
Total Assets IAS (€bn)
CSOB
25,4
Česká Spořitelna
22,6
Komercni Banka
17,8
HVB Bank Czech Rep.Živnostenská Banka (proforma)
7,4
HVB Bank Czech Rep.
Commerzbank
Raiffeisenbank
5,7
3,6
2,7
23
Source: Unicredit-NE Research Network based on local banks’ financial statements and CNB
(1) Total assets according to international accounting standards based on consolidated results (except for
Commerzbank whose figures are unconsolidated according to local accounting standards;
(2) Based on net unconsolidated figures for total banking system’s assets according to local accounting standards
Majority shareholder
25%
(KBC Group)
22%
(Erste Group)
17%
(Société Générale Group)
7%
(Unicredit Group)
6%
(Unicredit Group)
4%
(Commerzbank)
3%
(Raiffeisen International)
TOP BANKS IN HUNGARY
Total Assets1, market share and ownership
Market share2
Total Assets LAS (€bn)
OTP
14,2
7,5
K&H
MKB
6,5
Majority shareholder
19%
(Majority foreign capital)
10%
(KBC Group)
9%
(Bayerische Landesbank)
CIB
5,8
8%
(Intesa Group)
Erste
5,7
8%
(Erste Group)
7%
(Raiffeisen International)
5%
(Unicredit Group)
Raiffeisen
Hungary
HVB Bank
Hungary
5,0
4,0
24
Source: Unicredit-NE Research Network based on local banks’ financial statements and MNB
(1) Total assets according to local accounting standards based on unconsolidated results;
(2) Based on net unconsolidated figures for total banking system’s assets according to local accounting standards
TOP BANKS IN LATVIA
Total Assets1, market share and ownership
Market share2
Total Assets IAS (€bn)
3.2
Hansabanka
2.8
SEB Unibanka
2.6
Parex Bank
NORD/LB
Latvija
Rietumu banka
Nordea Bank
1.1
1.0
0.8
Majority shareholder
20%
(Swedbank)
17%
(SEB)
17%
(Majority private local capital)
7%
(DnB Nord Bank ASA)
6%
(Majority private capital)
5%
(Nordea Group)
25
Source: Unicredit-NE Research Network based on local banks’ financial statements and Central Bank
(1) Total assets according to international accounting standards based on consolidated results;
(2) Based on gross unconsolidated figures for total banking system’s assets according to local accounting standards
TOP BANKS IN LITHUANIA
Total Assets1, market share and ownership
Market share2
Total Assets IAS (€bn)
Vilniaus Bankas
4.4
AB Bankas
Hansabankas
3.5
NordLB (DnB
Nord Bank)
1.5
1.3
Bankas Snoras
Sampo bankas
Nordea Bank
0.9
0.8
26
Source: Unicredit-NE Research Network based on local banks’ financial statements and Central Bank
(1) Total assets according to international accounting standards based on consolidated results;
(2) Based on net unconsolidated figures for total banking system’s assets according to local accounting standards
Majority shareholder
34%
(SEB)
27%
(Swedbank)
12%
(DnB Nord Bank ASA)
10%
(Conversgroup - LUX)
7%
(Sampo Bank Plc.)
6%
(Nordea)
TOP BANKS IN POLAND
Total Assets1, market share and ownership
Market share2
Total Assets IAS (€bn)
Bank Pekao-Bank
BPH (proforma)
31,0
PKO BP
23,8
Bank Pekao
16,1
Bank BPH
15,0
ING Bank Slaski SA
10,9
Majority shareholder
20%
(Unicredit Group)
16%
(State)
11%
(Unicredit Group)
10%
(Unicredit Group)
7%
(ING Group)
BRE Bank
8,6
6%
(Commerzbank)
Citibank Handlowy
8,5
6%
(CitiGroup)
5%
(AIB Ltd)
Bank Zachodni
WBK
7,7
27
Source: Unicredit-NE Research Network
(1) Total assets according to international accounting standards based on consolidated results;
(2) Based on net unconsolidated figures for total banking system’s assets according to local accounting standards
TOP BANKS IN RUSSIA
Total Assets1, market share and ownership
Market share2
Total Assets LAS (€bn)
Sberbank
73.7
Vneshtorgbank
18.4
Gazprombank
12.7
Majority shareholder
26%
(State)
6%
(State)
4%
(Gazprom – State3)
Alfa-bank
6.8
2%
(Majority private local capital)
Uralsib bank
6.7
2%
(Majority private local capital)
Bank of
Mocow
6.5
2%
(Moscow City Government)
Rosbank
5.9
2%
(Private local capital)
28
Source: Unicredit-NE Research Network based on Interfax Rating Agency
(1) Total assets according to local accounting standards based on unconsolidated results;
(2) Based on gross figures for total banking system’s assets;
(3) In the end of 2005 Dresdner bank acquired ~33% stake
TOP BANKS IN SLOVAKIA
Total Assets1, market share and ownership
Market share2
Total Assets IAS (€bn)
Slovenská
Sporitelna
6,8
VUB
6,0
Majority shareholder
18%
(Erste Group)
16%
(Intesa Group)
Tatra Banka
4,9
13%
(Raiffeisen International)
CSOB
4,8
13%
(KBC Group)
9%
(Unicredit Group)
7%
(ING Group)
5%
(Unicredit Group)
HVB Bank
Slovakia+UniBanka
(proforma)
3,4
ING Bank
2,8
HVB Bank Slovakia
UniBanka
2,0
4%
1,4
29
Source: Unicredit-NE Research Network based on local banks’ financial statements and NBS
(1) Total assets according to international accounting standards based on consolidated results except for ING (unconsolidated and LAC) and CSOB (unconsolidated);
(2) Based on total banking system’s assets according to harmonised statistics (IAS)
(Unicredit Group)
TOP BANKS IN ROMANIA
Total Assets1, market share and ownership
Market share2
Total Assets LAS (€bn)
Banca Comerciala Romana
9,0
Banca Romana Pentru Dezvoltare
5,2
Majority shareholder
26%
(Erste Group)
15%
(Société Générale Group)
UniCredit Romania+HVB Bank
Romania+Banca Tiriac (proforma)
3,1
9%
(Unicredit Group)
Raiffeisen Bank (Romania)
3,0
9%
(Raiffeisen International)
7%
(Unicredit Group)
5%
(ING Group)
HVB Bank Romania+ Banca Tiriac
(proforma)
ING Barings Romania
2,6
1,8
Banc Post
1,6
4%
(EFG Eurobank)
Casa de Economii si Consemnaiuni
1,5
4%
(State)
30
Source: Unicredit-NE Research Network based on local banks’ financial statements and BNR
(1) Total assets according to local accounting standards based on unconsolidated results;
(2) Based on unconsolidated net figures for total banking system’s assets according to local accounting standards
TOP BANKS IN SLOVENIA
Total Assets1, market share and ownership
Market share2
Total Assets LAS (€bn)
Nova Ljubljanska
banka
9,2
Nova kreditna
banka Maribor
3,0
Abanka Vipa
SKB banka
2,5
2,0
31%
Majority shareholder
(State & KBC)
10%
(State)
9%
(Majority private local capital)
7%
(Société Générale Group)
Bank Austria
Creditanstalt
1,9
6%
(Unicredit Group)
Banka Koper
1,8
6%
(SanPaolo IMI Group)
Banca Celje
1,7
6%
(Nova Ljubljanska banka)
31
Source: Unicredit-NE Research Network based on local banks’ financial statements and Central Bank
(1) Total assets according to local accounting standards based on unconsolidated results;
(2) Based on net unconsolidated figures for the total banking system’s assets according to local accounting standards
TOP BANKS IN SERBIA AND MONTENEGRO
Total Assets1, market share and ownership
Market share2
Total Assets IAS (€bn)
Raiffeisenbank
Beograd
1,4
Banca Intesa
Beograd
1,0
Komercijalna
banka Beograd
0,9
Hypo AlpeAdria-Bank
Beograd
HVB bank
Beograd
Vojvodanska
banka Novi Sad
0,8
0,5
0,5
32
Source: Unicredit-NE Research Network based on local banks’ financial statements and NBS
(1) Total assets according to international accounting standards based on consolidated results;
(2) Based on net unconsolidated assets for the overall banking system according to local accounting standards
Majority shareholder
16%
(Raiffeisen International)
11%
(Intesa Group)
10%
(State)
9%
(Hypo Alpe-Adria-Group)
6%
(Unicredit Group/BA-CA)
5%
(State)
TOP BANKS IN TURKEY
Total Assets1, market share and ownership
Market share2
Total Assets LAS (€bn)
Ziraat
40,9
40,0
Is
Ak
32,9
Koç+YKB
(proforma)
25,2
Garanti
22,9
20,3
Vakif
17,0
Halk
YKB
Koç
15,0
9,3
Majority shareholder
16%
(State)
16%
(IsBank Pension fund)
13%
(Sabanci Group)
10%
(Unicredit & Koc Group)
9%
(Doğuş Group & GE)
8%
(State)
7%
(State)
6%
(Unicredit & Koc Group)
4%
(Unicredit & Koc Group)
33
Source: Unicredit-NE Research Network based on Bankers’ Association figures and BRSA
(1) Total assets according to local accounting standards based on unconsolidated results; for the Koc-YKB combined entity figures
refer to proforma results including only Q4 of YKB P&L data;
(2) Based on net unconsolidated figures for total banking system’s assets according to local accounting standards
METHODOLOGY


The comparison covers the following 16 countries: Bosnia and Herzegovina, Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia,
Lithuania, Poland, Romania, Russia, Serbia and Montenegro, Slovakia, Slovenia, Ukraine and Turkey;
In the ranking of international players, the CEE region includes the above mentioned 16 countries plus Albania, Azerbaijan, Belarus, Kazakhstan
and Macedonia;







Banking results’ in the first part of the comparison (up to slide 17) are according to local IAS (with the exception of SKB and SG
Vostok – owned by SocGen – UPI Banka – owned by Intesa – Niska Banka and Zepter Banka – owned by OTP – in local accounting
standards). For Erste Bank Croatia and RZB figures are according to austrian IAS while for OTP according to hungarian IAS and may thus
slightly differ from the local IAS;
Data are proforma 12M including deals closed as of May 2006. Only in a few cases proforma 12M results are not available (for details
see notes on the slides);
Data refer to consolidated results of the bank (with the exception of OTP Hungary);
Data correspond to the sum of stand-alone results of CEE subsidiaries considering 100% of total assets, revenues and net profits
(after tax and before minority interests) if shareholding > 50%. If < 50%, figures are shown proquota; for employees and branches, we
consider 100%; only for RZB figures refer to overall results of Raiffeisen international as no data were available for most of its subsidiaries.
This implies some underestimation of 2005 performance given that some banks are not fully owned (i.e. Tatra Banka, Priorbank, Raiffeisen
Croatia, Raiffeisen Czech R., Raiffeisen Hungary, Raiffeisen Serbia, Raiffeisen Bosnia and Raiffeisen Krekova Banka);
Figures may differ from those published in Groups’ results due to differences in the accounting standards (local vs home country ones),
number of quarters consolidated (as we include where available full year results) and consolidation effects;
The comparison among top banks at single country level (from slide 18) is based on a variety of different data which not always correspond to
international accounting standards. Moreover, results will be/were published in individual countries only after this report was prepared. Market
shares have been calculated based on data reported to the national banks on unconsolidated basis and according to LAS. Therefore in some
countries (Bulgaria, Czech R., Latvia, Lithuania, Poland, Serbia and Slovakia) the numerator and the denominator do not have the same
delineation and may thus overestimate the overall size of each bank in the market. The comparison nonetheless gives a picture of the
relative sizes and trends in the single banking markets of the region.
Closing date Mid June 2006
34