Bigger and better. That has been the simple message from central and eastern Europe over the past year, with almost the entire region boasting strong economic growth numbers, rising income levels and increased investor confidence at home and abroad. It’s a triple-whammy positive that forms the perfect basis for profitable banking, capital markets business and financial services. It’s no surprise then that there’s an undeniably bullish tone to virtually every market across the region, with bankers able to point to strong revenue growth from bread-and-butter as well as more sophisticated banking services. The game in central and eastern Europe is no longer one of servicing multinationals and their expatriate employees alongside bringing issuers to the international bond and equity markets. Success in the region is also based on the ability to meet the banking needs of the local populace and being able to build market share in local capital markets that are benefiting from a growing bid from both retail and institutional investor bases. With most of the reforms necessary to support sustainable economic development now largely in place across the region, central and eastern Europe continues to look to be one of the most attractive investment destinations for both strategic and portfolio investors, particularly those from western Europe looking to find the sort of high-growth, low-cost investment opportunities that are becoming scarce in the eurozone countries.
July 13, 2007
