Search results for

Kazkommertsbank (KKB) has more than double its assets and Bank TuranAlem (BTA) has a far superior net income but Halyk Bank takes the award for best bank in Kazakhstan thanks to its resilience in the face of global financial troubles. First-quarter net income fell by nearly 10% on the 2007 equivalent because of such issues as growing average rates on customer deposits and higher impairment charges on its loan portfolio, but other Kazakh banks have fared far worse. During the roadshow for Halyk’s successful $500 million benchmark Eurobond in April, the first for a Kazakh bank since July 2007, investors noted its "strong liquidity, low exposure to foreign debt, and its perception as the best bank in Kazakhstan". And there is ample evidence to support that sentiment. Halyk’s branches have reportedly remained busy, while KKB’s and BTA’s are much quieter. Credit lines have been shortened and cut at rival banks that have liquidity problems, which has pushed more business Halyk’s way. Between July and December last year, Halyk’s share of the domestic retail market grew from 19% to 21%, overtaking both KKB and BTA, which both lost market share over the same period. In the fourth quarter last year, Halyk’s deposits rose by 21.4%; KKB’s grew just 8.8%, and BTA’s grew not at all.

Privredna Banka Zagreb continues to be the leader of the banking pack in Croatia thanks to its popular combination of core banking services allied with specialist leasing, real estate and fund management capabilities. Its 230-strong branch network and extensive electronic distribution channels give it the leading position in the credit and debit card market and more than 77.5% of total transactions were carried out electronically.

ISI news

The Ukranian economy has been coping well under the pressures of domestic political uncertainty and global financial turmoil. In 2007, GDP grew by 7.3%, while retail sales increased by 28.8%. And Ukrsibbank has continued along its own growth curve. Majority owned by BNP Paribas since April 2006, the bank is the third largest in the Ukraine in terms of assets, shareholders equity and loan portfolio. Although PrivatBank and Raiffeisen Bank Aval are bigger, they cannot match Ukrsibbank’s dynamism.

In a year when the virtues of retail and corporate banking have come to the fore, Ceska Sporitelna secures the best bank title again in the Czech Republic. With support from its parent, Erste Bank, it has transformed itself into a banking powerhouse. Through 640 branches Ceska Sporitelna serves more than 5.3 million customers. In the past year it put in another strong performance with net interest income growing from Kc18.37 billion in 2006 to reach Kc21.2 billion ($1.37 billion), while operating profit rose to Kc18.37 billion in 2007 from Kc15.15 billion in 2006. As a result the bank’s return on equity edged up from 23% to 23.8% and the cost-income ratio improved from 53% in 2006 to 50% in 2007.

In combating inflation the credit squeeze may suffice in the medium-term, but, while waiting for its impact, central banks want to hold the fort with one or two rate increases.

Azerbaijan is one of the more productive of the smaller central Asian countries, with a population of 8.4 million and a GDP of $31 billion. Comfortably leading the country’s banking industry is International Bank of Azerbaijan, with about half of the country’s banking assets and loans. This year, following a $15 million loan for Bank Respublica and a $30 million loan for Unibank, IBA came to market in May for its own loan, to the amount of $173.5 million, the largest in the country’s history and a graphic reminder of the levels IBA operates at compared with its domestic peers. The deal was originally planned for $80 million but was increased on the back of strong investor interest.

The tricky completion of a triple merger in 2007 failed to dim the financial performance of UniCredit Bulbank, which was the number one bank in Bulgaria as measured by assets, loans and profits last year. With more than a million customers, the new entity is the leading universal bank in Bulgaria, with strong positions in corporate, investment and retail banking. The overall strength of the franchise was recognized by Standard & Poor’s last year, when it reaffirmed its BBB+ credit rating – the highest for any bank in Bulgaria. Despite the demands of merging Bulbank, HVB Bank and Hebros Bank, the new improved UniCredit Bulbank outperformed the rest of the banking sector, with net income rising by 25% and operating profit by 89.9%. Total assets grew by 21.1% to reach Lev9.06 billion ($7.2 billion) by year end 2007.

ISI news

With a population of just 5.21 million people producing a GDP of a mere $3.7 billion, Kyrgyzstan is not going to be home to any really large financial institutions. The biggest bank in Kyrgyzstan, with $130 million in deposits accounting for a 22.1 % market share, is Asia Universal. It is also the best performer. It is Kyrgyzstan’s fastest-growing mortgage provider and is the only Kyrgyz entity to have received an international credit rating. Total shareholders’ equity rose 212% to $36.5 million in the past year, while net income climbed 246% to $2.7 million. In both of those measures, as in total assets and customer accounts, Asia Universal is by far the country’s leader. It is also the first bank to offer internet banking services, and the only one to establish a dedicated control and compliance department. It is also competitive regionally, with branches in the Ukraine, Kazakhstan and Latvia, as well as a representative office planned for China later this year.

Despite increasing competition, Raiffeisen banka maintains its top billing in Serbia. On the retail front it boosted its customer base by 20% in 2007 to just short of 500,000, while growing its retail deposit and loan volumes by 32% and 26% respectively. There was a similarly strong performance in the corporate banking segment, with corporate lending rising by 24% to reach almost $1.2 billion, while deposits rose to $830 million. Raiffeisen banka was particularly successful in boosting its business with small and micro-sized enterprises, increasing its client base by 36% and its lending by 47% to reach $312 million. The bank also has a leading market position in the treasury business, accounting for a 19% share of foreign exchange trading for retail customers and 13.68% for banking clients. As a result of all these advances in 2007, the bank boosted its net profit by 60% and its return on equity climbed to 21.4% from 16.6% in 2006.

Despite difficult economic conditions in 2007, Moldova-Agroindbank still managed to boost its net profit by a healthy 30% margin to MLei235.5 million ($23.6 million). The bank remains the country’s largest by assets, with a 21% market share and plays a key role in the economy, providing roughly 23% of all loans and accounting for 22% of total deposits. The bank continues to attract new investors, with Slovenian textile manufacturer Tkanina joining fellow Slovene outfits Factor Banka and asset managers Poteza, Activa Invest and Druga Penzija as shareholders.