CEE banking markets continue to be dominated by foreign investors with: UniCredit, Erste, Raiffeisen, KBC and SG controlling a combined 35% of total banking assets in the region. Although the number of banks making losses (34 out of 200 as for 2011) increased slightly against the year before – the profitability ratios remained stable with combined return on equity (ROE) close to 7.6%, and return on assets (ROA) exceeding 0.8%.
The TOP200 CEE 2011 league table is led by two Polish banks: PKO Bank Polski (assets of EUR 42.6 billion) and Bank Pekao (assets of EUR 32.2 billion), followed by the Czech major bank ČSOB. Poland remained the single largest banking market in the region, with assets worth EUR 293 billion and holding the 30% share.
The most rapid growth has been recorded in peripheral countries like Albania, Macedonia and Serbia, while the highest drop in assets occurred in Hungary, which was hit hard by a significant currency depreciation.
Banking assets in CEE15 countries (as of 2011)
Bosnia and Herzegovina 12.1
The future outlook remains mixed. Although the economic situation in major CEE economies like Poland or Czech Republic is likely to remain stable, few markets, including Hungary or Romania may diverge further, suffering from unfavorable regulatory and tax environment.
For more information on recent developments in CEE banking sectors, please refer to the publication "Top 200 banks in Central and Eastern Europe/CEE 2012," available at: http://www.inteliace.com/
ABOUT INTELIACE RESEARCH
Inteliace Research is an independent consulting company that focuses on the financial markets in Central and Eastern Europe. Inteliace Research specializes in management consulting and custom research services, including market entry strategy, product launch, performance, and benchmarking analysis.
During 2005–2012, Inteliace Research provided its products and services to over 50 clients, including major CEE banks and several "The Banker" top world banks. To learn more about the company, visit Inteliace Research’s webpage: www.inteliace.com.