CSOB
Ceskoslovenska Obchodni Banka (CSOB) is strengthening its leading position in the Czech financial market, where it serves more than 3.5 million customers. The bank is focusing on the provision of bank-insurance services to individuals and small-and-medium sized enterprises.
CSOB's declared ambition is "to be a united family of bank-insurers built upon a stable and substantial retail franchise" and it serves its clients through 208 business outlets in the Czech Republic. The banking group provides a range of savings schemes, mortgage loans, insurance and asset management services.
Slovakia is another important market for CSOB and part of the bank's strategy is to significantly improve its position in that country. The ambitious target is to capture a 10% share of the Slovak market in retail loans and managed assets by 2007. CSOB operates 78 outlets in Slovakia and several channels of direct banking.
CSOB is a member of the KBC group, which was created in March 2005 through the merger of KBC Bank and Insurance Company with Almanij. KBC bank (Belgium) bought a majority stake in CSOB when the bank was privatized in 1999.
CSOB is rated A+ by Fitch ratings agency, BBB+ by Standard & Poor's and A1 by Moody's Investor Services.
Ceska Sporitelna
John James Stack, Ceska Sporitelna's chief executive, says the bank has a good opportunity to grow over the next few years. "It is very exciting to be in central Europe as we enter this sustained economic expansion period," he says.
With 5.5 million customers, Sporitelna is the Czech Republic's largest retail bank and operates 667 branches throughout the country. The bank's market shares in certain segments are sizeable: 29% of loans to retail customers, 42% of card business and 42% of cash dispenser transactions.
"I believe that central Europe will be an engine of growth for the EU over the next 10 years," says Stack. Sporitelna's activities are geared towards retail customers, but the finance group also includes insurance, factoring and leasing operations.
The Republic's bank is also a big player on the Czech bond, interest rate swap and FX markets and is the largest primary dealer in Czech koruna treasury bonds and bills.
The bank became part of Erste Bank, when Erste acquired a 52% stake in 2000, as part of its strategy to expand retail business in central Europe.
Now Erste's goal is to achieve a 20% market share of the region.
Sporitelna is rated A2 by Moody's, A- by Fitch ratings agency and BBB+ by Standard & Poors.
Bank Pekao
Bank Pekao has just had a bumper year; net profits rose by 46% in 2004. Now, the bank is looking to increase its lending business by 11% and its savings business by 4.4% in 2005. Solid economic expansion in Poland means that the bank expects individual and small and medium corporate borrowing to take off.
Poland's second biggest bank is also focusing on its mutual fund sales, which were one of the main drivers behind the bank's success in 2004. The mortgage market is the other pillar of Pekao's savings services and the bank's mortgage portfolio saw a year-on-year growth of 80% in 2004.
A declared aim of Pekao is to modernize the provision of services through developing electronic and telephone banking and distributing products directly. Last year, a new IT system was installed in all of the bank's 782 branches. The network of outlets and ATM machines is also to be developed.
Pekao's largest shareholder is Unicredito Italiano, one of Italy's leading banks. Since 1999, Unicredito has implemented an ambitious marketing and restructuring programme, which has brought Pekao to the forefront of east European banking.
Pekao is rated BBB by Standard & Poor's, A by Fitch ratings agency and A2 by Moody's Investor Services.