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Bank Pekao maintained its strong position in the Polish banking markets where it serves about 4 million retail customers and half of all big Polish corporates. Despite the challenge of integrating 285 branches and 2.3 million customers from part of Bank BPH in the first half of 2008, Bank Pekao continued to put in a strong financial performance in the face of a deteriorating economic environment. It maintained a sound balance sheet and strong liquidity, with a loan-to-deposit ratio of 90.8%, well below the Polish banking sector average of 111.9%. Thanks to continued effective risk management, asset quality improved further in 2008, with the non-performing loan ratio improving by 2.2 percentage points to stand at a creditable 5.5%. Overall profitability remained strong, with a return on equity of 23.5%. The bank’s 45.5% cost-income ratio was vastly superior to the sector average of 55.2%.

The battle between Akbank and Garanti Bank has dominated Turkish banking for a decade. Garanti’s focus on technology, infrastructure and a balance sheet that put customers rather than the government first has, in the past, given it the edge. However Akbank’s continuing investment in IT and customer relations management systems (for example, more than 82% of its retail clients are now electronic customers compared with 22% of Garanti’s), its push into the underbanked areas of Turkey and its response to the gathering economic storm have brought the contenders closer together. Garanti is still more profitable but Akbank’s return on assets is higher and elsewhere the bank is performing well: its net interest income grew by 22.5% and net fees and commissions grew by 25.5%.

When RBS bought ABN Amro it’s doubtful that chief executive Sir Fred Goodwin gave much thought to the Dutch bank’s Uzbek outpost. But while Goodwin has gone and RBS has been nearly destroyed by the Dutch acquisition, the Uzbek unit goes from strength to strength.

With more than 1.2 million customers, UniCredit Bulbank remains by far the biggest bank in Bulgaria, providing a wide range of products and services through its universal banking platform. In 2008, despite the challenging economic backdrop, the bank further strengthened its already strong market position, increasing its assets by 21.5%, compared with an average level of 17% for the rest of the banking sector.

Priorbank has had a good 12 months despite the economic problems in Belarus. In January the government negotiated a 15-month stand-by arrangement with the IMF for $2.5 billion as Belarus got sucked into the global financial crisis. In June the IMF announced that it would increase its facility by another $1 billion after Russia withheld a $500 million loan instalment, the last tranche of a $2 billion loan facility. Priorbank, however, brushed aside these issues by recording a 53.2% increase in net profits and a 45.5% rise in total assets. Its balance sheet was strengthened too, with its tangible common equity rising 57.4% in 2008. Part of the Raiffeisen International group, Priorbank has firmly established itself as the country’s leading bank. It has significantly grown its sales network and products – it is also the only bank that provides retail customers with the opportunity to conduct transactions on the internet. However, the corporate business is the bank’s driving force. Last year, Priorbank increased its loans portfolio to this sector by more than 20%.

In spite of strong competitive pressures at home and the challenge of the global financial crisis, Raiffeisen banka managed to maintain its number one spot in Serbia thanks to a strong across-the-board outperformance of its rivals in asset growth and profitability. At the end of 2008, the bank boasted more than 100 outlets serving almost 600,000 customers and covered all business segments including corporate, retail, small and medium-sized enterprise, and treasury and investment banking. Key financial highlights in 2008 included a 52% increase in operating income and 38% rise in net income. At the same time, the bank slashed its cost-income ratio by 15 percentage points to 49.1%.

Nova Ljubljanska Banka (NLB) remains the pre-eminent bank in Slovenia, easily eclipsing its competitors in the breadth of its banking services and products. Despite a challenging domestic economic backdrop it retained its grip on the Slovenian banking market in 2008, registering positive growth in assets, loans and deposits. As a result it continues to control roughly a third of the Slovenian market. Highlights in 2008 included a $300 million capital increase, which boosted the bank’s capital base to almost €1.2 billion from €893 million in 2007, with the bank’s capital adequacy ratio increasing by one percentage point over the same period to reach a respectable 11.9%. Although after-tax profits slumped from €119 million to €49 million, there was positive news on net interest income, which jumped from €229 million to €286 million. As well as being the leading retail and corporate bank in Slovenia, NLB’s strong investment banking and asset management operations mean it is well placed to benefit from any economic upswing. As a systemically important bank, it has also secured a guarantee from the Slovenian government for a planned €2.5 billion bond issuance programme.

Privredna Banka Zagreb (PBZ) maintains its position as best bank in Croatia thanks to a strong showing in retail and corporate banking, with the bank boasting more than 1.6 million clients, giving it an 18.2% market share by the end of 2008. As a result, PBZ boosted its net profit by 18% on the previous year. In retail banking it maintained its strong comparative advantage over its competitors with the most extensive network, consisting of 230 branches and regional offices.

It has been a tough year for Azerbaijan’s economy following the fall in the oil price. Its banks too are finding life more challenging. Still, International Bank of Azerbaijan (IBA) continues to rack up impressive figures, with its net profit up 62%, total assets up 15% and tangible common equity up 93% in the period under review.

Credit Suisse’s Swiss corporate and retail banking unit achieved record financial results in 2008 despite unprecedented market dislocations. In particular, the growth in net new assets throughout the whole period including the first quarter of 2009 highlights the faith that clients have in the bank. Credit Suisse continues to be one of the best-capitalized banks in the world and therefore is seen as an source of stability and a safe haven within its home market.

Intesa Sanpaolo is among the top banking groups in the eurozone ranked by market capitalization and the clear leader in Italy in all business areas, across retail, corporate and wealth management. Thanks to a domestic network of 5,509 branches throughout the country, with market shares above 15% in most Italian regions, the group offers its services to about 11.2 million Italian customers. It has a leading share of loans and deposits.

Although 2008 was difficult for the financial sector globally, Rabobank managed to realize a 2% rise in net profit to €2.8 billion. Return on equity was 9.7% and the liquidity position lost none of its soundness. Amounts due to customers were 10% higher, at €304 billion. Also, the bank maintained good access to the capital market.