SME BANKING 2018 - TopLead

SMEBANKING2018 CENTRAL & EASTERN EUROPE

This is the second issue of the CEE SME Banking Report. The report is structured around Central and Eastern Europe with a detailed regional analysis of the following countries: Bulgaria, Hungary, Poland, Romania, and Serbia.

When preparing the report, data from state statistical services, central banks, annual bank reports and other public sources of information were used. The data was current as of January 1, 2018; where information was unavailable as of that date, the latest available data on the bank was used.

This report includes a series of annual reviews of regional markets, allowing you to familiarize yourself with the situation in other markets, in particular the СEE countries.

It is not our intention to present a perfect picture with this report, but we are sure that we can achieve a clearer perspective on the state of development in the SME banking segment and its potential by working together. In the end, this will contribute to improving the efficiency of business management and the quality of managerial decisions by top managers of financial organizations, as well as generate greater interest in the segment from both existing and new players.

Knowledge is power, and we will have achieved our goal if this information gives you more significant insights into your daily work and strategic plans.

If you have any suggestions or proposals, feel free to send them to [email protected].

Yours sincerely, SME Banking Club team

2CEE SME Banking Report 2018

SME Banking Club

Foreword

BANKINGOUTLOOK

CEE SME BANKING REPORT 2018

Brief economic overview of key indicatorsPart 1

Bulgaria

http://www.nsi.bg

* — 2016

1.96 / €1

http://www.bnb.bg

50.47.17.1

GDP (current prices, bln.EUR) Population, total (millions) Surface area (sq. km, thousands)

Romania

http://www.insse.ro

4.66 / €1

http://www.bnr.ro

184.219.6238.4

Poland

http://stat.gov.pl

4.17/ €1

http://www.nbp.pl

465.538.4312.7

Serbia

http://www.stat.gov.rs

118.47 / €1

https://www.nbs.rs

37.57.188.4

Turkey

http://www.turkstat.gov.tr

4.55 / €1

http://www.tcmb.gov.tr

123.19.8

785.4

Slovenia

Source:https://www.dzs.hr

1.00 / €1

http://www.bsi.si

48.74.156.6

43.32.120.3

Czech Republic

http://ask.rks-gov.nethttps://www.czso.cz

25.54 / €1

https://www.cnb.cz

192.010.678.9

Kosovo

http://www.monstat.org

1.00 / €1

http://www.bqk-kos.org

3.80.613.8

Croatia

http://www.stat.sie

7.51 / €1Source:

https://www.hnb.hr

6.31.810.9

Albania*

http://www.bhas.ba

132.95 / €1

https://www.bankofalbania.org/

16.13.551.2

Montenegro*

http://www.instat.gov.al

1.00 / €1

http://www.cb-cg.org

10.72.928.8

Bosnia & Herzegovina

http://www.stat.gov.mkhttps://www.ksh.hu https://slovak.statistics.sk

1.96 / €1

http://www.cbbh.ba

310.14 / €1

https://www.mnb.hu

61.49 / €1

http://www.nbrm.mk

1.00 / €1

http://www.nbs.sk

10.12.125.7

753.580.893.0

85.05.449.0

Economy structure Agriculture (current prices, bln.EUR) Industry (current prices, bln.EUR) Services (current prices, bln.EUR)

Hungary FYRM Slovak Republic

1.9 9.7

14.1 141.3

34.3 258.5

8.1

55.4

103.5

2.3

9.9

18.7

4.1

32.6

67.5

4.3

66.0

107.4

0.8

12.5

24.4

1.6

10.6

28.5

0.6

1.6

2.8

0.4

0.8

2.6

2.5

2.6

5.7

0.9

5.8

9.0

0.9

2.3

5.5

45.8

219.9

401.7

2.8

26.3

47.5

Banking OutlOOk economics


SME Banking Club

Poland

Turkey

Romania

Czech Republic

Slovenia

Hungary

Bulgaria

FYRM

Serbia

Croatia


Kosovo

AlbaniaMontenegro

Slovak Republic

41.952.3%

73.054.4%

23.752.8%

33.153.5%

95.354.5%

56.052.9%

42.5855.0%

25.456.8%

SME density (per 1000 people)

SME's Share (value added,%)

Albania

Kosovo

Montenegro

FYRM


Serbia

Turkey

Romania

Bulgaria

Croatia

Slovak Republic

Hungary

Poland

Slovenia

Czech Republic

3%

2%

2%

2%

3%

3%

4%

4%

6%

6%

6%

9%

10%

12%

23%

Agro share (% of GDP)

Brief economic overview of key indicatorsPart 2

Czech Republic

Slovak Republic

Hungary

Kosovo

Slovenia

Croatia

Poland

FYRM

Turkey


Montenegro

Serbia

Albania

Romania

Bulgaria

Internet user's share (%)

67%

66%

63%

60%

68%

70%

70%

72%

73%

74%

76%

80%

81%

85%

88%

46.266.7%

26.164.5%

36.959.2%

65.964.0%

52.961.6%

26.767.8%

41.774.7%

TurkeySerbia

SloveniaCzech Republic

RomaniaBulgariaKosovoAlbania

Slovak RepublicHungary

Bosnia & HerzegovinaCroatia

MontenegroPolandFYRM

185.9%102,.5%108.1%105.3%116.4%101.2%101.5%

99.7%104.6%107.8%103.0%102.7%101.5%104.0%103.5%

7.3%6.0%5.0%4.5%4.4%3.7%3.6%3.5%3.4%3.3%3.0%2.8%2.5%2.1%

0%

GDP growth (annual %)Inflation, GDP deflator (annual %)

PolandCzech Republic

TurkeyHungary

Slovak RepublicRomania

SerbiaSloveniaBulgariaCroatiaFYRM

AlbaniaKosovo

Bosnia & HerzegovinaMontenegro

230.0138.4207.0101.6

78.981.971.231.427.824.0

6.94.9

18.63.02.5

248.6152.2139.0111.3

81.877.969.535.625.825.1

5.63.12.41.91.6

Exports of goods and services (current prices, bln.EUR)Imports of goods and services (current prices, bln.EUR)

Banking OutlOOk economics


SME Banking Club

Country Banking OverviewDoing business rating

Poland21 14

Turkey 21

24

27

29

27

16

12

10

15

15

47

34

23

35

Romania 26 14 3535

Number of banks with foreign owners

Number of banks in SME banking

Number of banks

Albania 12

FYRM 11

Kosovo 8

Bulgaria 15 11

Serbia 19 15

15 Bosnia & Herzegovina

15 Croatia

7 Slovenia

8 23 Hungary

22 Slovak Republic

38 Czech Republic

8 Montenegro


Albania

Turkey

Croatia

Bulgaria

Hungary

Romania

Serbia

Montenegro

Kosovo

Slovak Republic

Slovenia

Czech Republic

Poland

FYRM

67.74

68.70 +0.96

74.43

75.42+0.99

2017

2018Rating changes

The best/the worst parameter

Getting Credit

Getting Electricity

Registering Property

Starting a Business

72.70

72.87 +0.17

72.13

72.39 +0.26

68.51

73.49 +4.98

77.12

77.30 +0.18

67.98

69.14 +1.16

71.65

71.70 +0.05

71.54

73.18+1.64

76.24

76.27 +0.03

75.15

74.90-0.25

81.18-0.21

81.39

63.78

64.20 +0.42

72.87

73.13 +0.26

71.81

71.91 +0.10


Enforcing Contracts

Starting a Business

Getting Credit

Starting a Business

Getting Credit

Getting Electricity


Getting Electricity

Starting a Business

Resolving Insolvency

SME Overview

Total assets,bln.EUR

Number of branches per 100 ths. adults (2016)

Poland

Czech Republic

Turkey

Hungary

Romania

Slovak Republic

Croatia

Bulgaria

Slovenia

Serbia


Albania

FYRM

Montenegro

Kosovo

31.0

22.4

18.1

14.7

28.0

28.3

32.9

48.5

30.5

29.7

28.9

21.5

25.0

44.2

20.0

378.4

274.5

150.8

117.2

98.7

75.8

53.4

50.0

37.9

28.4

15.7

10.9

7.5

4.2

3.9

RomaniaNPL – 10.0%

BulgariaNPL – N/A

Poland

NPL – N/A

HungaryNPL – 9.3%

SerbiaNPL – 20.1%

12.349

.5

7.1

6.5

5.5

SME loans, bln.EUR

Banking OutlOOk Business environment


SME Banking Club

TOP SME BANKS* (RANKING BY SME PORTFOLIO) TOP SME BANKS* (RANKING BY NO. SME CLIENTS)

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

PKO Bank Polski

Bank Zachodni WBK

Alior Bank

Bank BGŻ BNP Paribas

UniCredit Bulbank**

Bank Millennium

mBank

UniCredit

K&H (KBC) Bank

Idea Bank

CEC Bank

MKB Bank

Raiffeisen Bank Polska

Citi Handlowy

Bank Pekao

Budapest Bank

ING Bank Śląski

Banca Transilvania

United Bulgarian Bank (KBC Group)

Intesa Bank Serbia

7 096.8

4 334.8

3 074.9

2 589.4

2 432.1

2 304.1

2 282.6

2 133.5

1 991.7

1 799.3

1 721.3

1 698.5

1 551.2

1 189.1

1 174.3

1 109.2

1 070.5

922.8

900.5

884.4

Poland

Poland

Poland

Poland

Bulgaria

Poland

Poland

Romania

Hungary

Poland

Romania

Hungary

Poland

Poland

Poland

Hungary

Poland

Romania

Bulgaria

Serbia

# Bank

* - the rank was compiled only for banks from 5 countries, which were analyzed in details in current report,according to available open data.

** - 2016

SME Portfolio, mln.EUR

Country

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

PKO Bank Polski

CEC Bank

Alior Bank

Bank Pekao

BRD

Bank Zachodni WBK

Banca Transilvania

Banca Comercială Română (BCR, Erste)


Raiffeisen Bank Romania

ING Bank Śląski

Bank Millennium

mBank


Bank Pocztowy

UniCredit

Bancpost (Eurobank)**

Alpha Bank Romania

Sberbank Serbia

Banca Romaneasca**

1 192

1 022

905

851

760

576

529

529

476

454

357

355

300

237

214

156

149

130

120

109

Poland

Romania

Poland

Poland

Romania

Poland

Romania

Romania

Poland

Romania

Poland

Poland

Poland

Poland

Poland

Romania

Romania

Romania

Serbia

Romania

# BankNO. SME clients,

thsd.Country

Banking OutlOOk toP sme Banks


SME Banking Club

COUNTRY OVERVIEW

POLANDCEE SME BANKING REPORT 2018

COUNTRY OVERVIEW

POLANDCEE SME BANKING REPORT 2018

AGRICULTURE, FORESTRY AND FISHING

INDUSTRY

Q I Q II Q III Q IV

Q ІVQ ІIIQ IІQ I

AgricultureIndustryServices

Doing Business Distance to Frontier (DTF)77,12

77,30 +0.18 Resolving Insolvency

GDP (current prices, bln.EUR) Population, total (millions) Surface area (sq. km, thousands) GDP per capita (current price, EUR) Agro share (% of GDP) Export share (% of GDP) SME's share (value added, %) Internet user's share (%)

465.5

38.4

312.7

12 100.0

104.0%

Inflation, GDP deflator (annual %)

GDP by Production approach

4.6% 2.1% 73.0%52.5%53.0%

GDP growth (annual %)

41.9 SME density (per 1000 people)

SERVICES ETC.

Gross domestic product (current prices, mln. EUR) 107 262.5 111 935.4 115 125.0 131 216.2

Min

ing

Man

ufac

turin

g

Elec

trici

ty, g

as e

tc.

Wat

er su

pply

etc

.

Cons

truct

ion

Trad

e

Tran

spor

tatio

n

Acco

mm

odat

ion

and

cate

ring

Info

rmat

ion

and

com

mun

icat

ion

Fina

nce

Real

est

ate

Oth

er se

rvic

e ac

tiviti

es

Q ІVQ ІIIQ IІQ I

18 673.4

18 648.2

17 418.1

18 212.5

8 187.17 980.26 106.75 492.1

5 150.55 419.05 653.64 649.5

3 922.64 618.34 474.43 768.5

4 864.93 933.64 175.82 974.1

1 300.91 387.4979.9823.6

27 483.0

23 105.7

24 866.4

24 274.0

10 081.8

8 486.3

7 307.84 185.5

26 798.6

20 187.5

18 178.3

20 754.9

2 477.9

2 483.3

44 274.533 168.8

31 694.032 113.2

60 194.4 63 675.0 65 092.5 69 582.3

2 542.0

2 155.9

3 671.21 875.82 973.74 039.0

2 349.4875.91 417.4969.9

1 373.51 743.41 816.82 163.9

COuntrY OvErviEw - POland economics


SME Banking Club

Corruption Perceptions Index 180 countries participate in the rating, the worst rating is 10 (Somalia),the best 90 (New Zealand, Denmark)

DB 2018 RankingThe rating is measured on a scale of 190 to 1, where 190 represents the worst result, and 1 is the best.Distance to Frontier Ranking 2018The remoteness of each country from the "frontier" is measured on a scale of 0 to 100, where 0 represents the worst result, and 100 represents the "frontier".

1. MEASURING BUSINESS REGULATIONS (DOING BUSINESS RANK)

2012 2013 2014 2015 2016 2017

58 60 6061 62 62

05

1015202530

77.3

82.8

76.5

75.0

61.7

79.4

100.0

75,2

63.4

77,7

81.4

Enforcing Contracts

Resolving Insolvency120

55

22

Overall27

Starting a Business

41Dealing with Construction Permits

54Getting Electricity

38Registering Property

29Getting Credit51 Protecting Minority Investors

51 Paying Taxes

1 Trading across Borders

2. CORRUPTION PERCEPTIONS COUNTRY RANK 2017: 36 FROM 180 (THE BEST 1, THE WORST 180)

3. GLOBAL PEACE INDEX VISION OF HUMANITY RANK

3540COUNTRY WORLD RANK

2018WORLD RANK 2017

WORLD RANK CHANGE

Poland 32

EUROPE RANK 2018

Czech Republic 7 1

Greece 79 6

EUROPE RANK 2017

EUROPE RANK CHANGE

—

—

—33

6

73

22

5

32

22

5

32

45505560

1

COuntrY OvErviEw - POland Business environment


SME Banking Club

PKO Bank PolskiBank PekaoBank Zachodni WBKmBankING Bank ŚląskiBank BGŻ BNP Paribas*Bank MillenniumAlior BankGetin Noble BankCiti Handlowy

71 113.0

44 420.0

36 567.0

31 477.0

30 181.0

17 424.0

17 039.0

16 644.0

N/A

10 308.0

18.8%

11.7%

9.7%

8.3%

8.0%

4.6%

4.5%

4.4%

N/A

2.7%

1

2

3

4

5

6

7

8

9

10

TOP10 BANKS - RANKED BY TOTAL ASSETS*

ТОР-10

TOTA

L BA

NK

ASS

ETS

Total Assets, EUR MillionShare of Total Assets, %

72.7%

275

173.

0

378

374.

4

state-owned

2.1%12

1 232

.4

378

374.

4

36 567.0

31 477.0

30 181.0

17 424.0

17 039.0

11 741.8

10 308.0

N/A

N/A

9.7%

8.3%

8.0%

4.6%

4.5%

3.1%

2.7%

N/A

N/A

1

2

3

4

5

6

7

8

9

TOP9 FOREIGN BANKS - RANKED BY TOTAL ASSETS*

TOP STATE-OWNED BANKS - RANKED BY TOTAL ASSETS*

ТОР-9

40.9% 154

737.8

378

374.

4

*Ranked by Total Assets, as of December 31, 2017

WEIGHTED AVERAGE INTEREST RATES FOR BANKS' LOANS IN 2017 (LCU)

3.63.7

3.8 3.8

3.5

3.7 3.6

3.7

3.9

3.7

3.6 3.6

Jan

FebMar Apr

May

JunJul

Aug

Sep

Oct

Nov Dec

END OF MONTH EXCHANGE RATES IN 2017

4.33 4.324.22 4.21 4.17 4.23

4.25 4.26 4.31 4.254.21 4.17Jan Feb

Mar Apr MayJun Jul Aug Sep

OctNov

Dec

LOANS GRANTED BY CREDIT INSTITUTIONS

Retail trade and repairs

Hotels and restaurants

Professional, scientific and technical activities

Transportation and storage

Agriculture

Administrative activitiesElectricity, gas and heating supply

Construction

22

168

6 19

5

4

%

TOTA

L BA

NK

ASS

ETS


TOTA

L BA

NK

ASS

ETS

Real estate activities

4

4

Manufacturing

0.3

4

Other

Bank Zachodni WBKmBankING Bank Śląski Bank BGŻ BNP ParibasBank MillenniumRaiffeisen Bank Polska*Citi HandlowyCredit Agricole Bank PolskaEurobank

PKO Bank PolskiBank PekaoBOŚ BankBank Pocztowy

71 113.0

43 654.1

4 713.0

1 752.3

18.8%

11.5%

1.2%

0.5%

23

Information and communication

Mining

32.0%

COuntrY OvErviEw - POland Banking industry


SME Banking Club

BUSINESS LOANS, MLN. EUR

88 000

TOTAL NUMBER OF BANKS

56.5%Share of active banks

in SME

40.0%Share of SME Loans

50 000 35 14

Total SME

% PLN% EUR

WEIGHTED AVERAGE INTEREST RATES OF THE BANKING SECTOR (NEW BUSINESS, NON-FINANCIAL CORPORATIONS)

Q I 2016

Q II 2016

Q III 2016

Q IV 2016

end of period

3.6

3.8

3.63.7

3.6

1.4

1.7

2.12.0

2.2

COUNTRY SME LOANS PORTFOLIO, MLN.EUR

2013 2014 2015 2016 2017

39 526 41 198 43 289 43 75649 521

COuntrY OvErviEw - POland sme Banking


SME Banking Club


88 000


56.5%Share of active banks

in SME


50 000 35 14

Total SME

% PLN% EUR


Q I 2016

Q II 2016

Q III 2016

Q IV 2016

end of period

3.6

3.8

3.63.7

3.6

1.4

1.7

2.12.0

2.2


2013 2014 2015 2016 2017

39 526 41 198 43 289 43 75649 521

Citi Handlowy


Idea Bank

0

300

400

200

100

500

SME PORTFOLIO, MLN.EUR

1 — PKO Bank Polski2 — Bank Zachodni WBK3 — Alior Bank4 — Bank BGŻ BNP Paribas5 — Bank Millennium

6 — mBank7 — Idea Bank8 — Raiffeisen Bank Polska9 — Citi Handlowy10 — Bank Pekao

BRANCHESNUMBER OF SME CLIENTS, THOUSANDS

NUMBER OF BRANCHES

NU

MBER

OF S

ME C

LIE

NTS,

TH

OU

SAN

DS

0

100

200

300

400

500

0

300

600

900

1200

0

1500

3000

4500

6000

7500

1 2 3 4 5 6 7 8 9 10 6 1 2 7 3 10 8 4 5 9 1 3 10 2 4 5 6 8 7 9

PKO Bank Polski

Bank PekaoAlior Bank

Bank Zachodni WBK


mBank

Bank Millennium

0 250 500 750 1000 1250


7096

.8

4334

.8

3074

.9

2589

.4

2304

.1

2282

.6

1799

.3

1551

.2

1189

.1

1174

.3

539

439

308

246

180

179

72 16 14 4 1192

905

851

576

476

355

300

237

55 26

COuntrY OvErviEw - POland toP Banks


SME Banking Club

At the end of 2017, 35 commercial banks and 28 branches of credit institutions were operating in Poland. There were also 556 cooperative banks operating in the domestic market. The market share of state-owned banks (percentage of total assets) was 32 percent, while that of foreign-owned banks (percentage of total assets) was almost 50 percent.

The NPL ratio of Polish banks has been steadily declining over the last three years, reaching 5.9 percent in 2017, and this trend is expected to continue. The decline of the SME NPL ratio accelerated the previous year, dropping from 12.3 percent in 2015 to 10.0 percent in 2017.

ROE in the Polish banking sector fell from 7.76 percent in 2016 to 7.07 percent in 2017, and ROA fell from 0.84 to 0.78 accordingly.

Loan volumes to enterprises in the banking sector increased by 8 percent in fixed exchange rates, amounting to EUR 87.7 billion. Around 40 percent of banks worked with SMEs, while SME loans accounted for 57 percent of business loans, amounting to EUR 49.5 billion.

According to the 2017 SBA Fact Sheet by the European Commission, Poland continued to perform well with respect to providing SMEs with access to finance. Poland has taken many measures to ensure access to funding since 2008, as this sector was considered a priority for growth. There is now a wide range of financing sources available to SMEs, such as loan instruments and state guarantees, grants and access to tax and export credits. Poland’s performance in this area is broadly in line with the EU average, with the country making progress in recent years. However, in 2016 some indicators fell. A higher percentage of rejected loan applications was recorded than in 2015, although bank loans and credit lines remain the most common sources of financing for SMEs.

COuntrY OvErviEw - POland summary


SME Banking Club

https://ec.europa.eu/docsroom/documents/29489/attachments/20/translations/en/renditions/native

COUNTRY OVERVIEW

BULGARIACEE SME BANKING REPORT 2018


INDUSTRY

Q I Q II Q III Q IV

Indu

stry

Cons

truct

ionQ ІV

Q ІIIQ IІQ I



71,91 + 0,10 Getting Electricity


50.4

7.1

7.1

7 153.3

101.2%



3.7% 3.7% 59.8%66.7%51.1%



SERVICES ETC.

2 277.3

2 669.5

2 807.5

2 780.9

413.1586.5475.0352.8


Real

est

ate

Oth

er se

rvic

e ac

tiviti

es Q ІVQ ІIIQ IІQ I

1 076.3

1 249.6

1 022.1

1 133.5

Fina

nce

816.0649.3884.0

919.3Info

rmat

ion

and

com

mun

icat

ion

459.1515.9681.0748.5

Trad

e, tra

nspo

rtatio

n, ac

com

mod

atio

n et

c.

1 660.2

2 316.2

2 658.7

2 829.5

2 099.9

2 347.3

2 395.4

2 959.4

220.4

2 630.1

6 111.5

431.0

3 144.4

7 078.3

872.3

3 394.0

7 641.3

365.1

3 194.0

8 590.2

COuntrY OvErviEw - Bulgaria economics


SME Banking Club




2012 2013 2014 2015 2016 2017

41 41 43 41 41 43

05

1015202530

72.0

85.4

69.3

70.070.0

71.8

97.4

73.467

.0

60.0

54.8

Enforcing Contracts


40

50

Overall50

Starting a Business





90 Paying Taxes




3540

COUNTRY WORLD RANK 2018

WORLD RANK 2017

WORLD RANK CHANGE

Bulgaria 26

EUROPE RANK 2018

Romania 24 1

Turkey 149 3

EUROPE RANK 2017

EUROPE RANK CHANGE

12

–

–

28

25

146

18

17

36

19

17

36

COuntrY OvErviEw - Bulgaria Business environment


SME Banking Club

UniCredit BulbankDSK BankFirst Investment BankEurobank BulgariaUnited Bulgarian BankRaiffeisenbank (Bulgaria)Societe General ExpressbankCentral Cooperative BankCibankPiraeus Bank Bulgaria

9 763.7

5 952.9

4 526.2

3 493.0

3 486.1

3 233.2

3 034.4

2 541.1

1 586.2

1 486.7

19.5%

11.9%

9.1%

7.0%

7.0%

6.5%

6.1%

5.1%

3.2%

3.0%

1

2

3

4

5

6

7

8

9

10


ТОР-10

TOTA

L BA

NK

ASS

ETS


78.2% 39 10

3.5

50 0

08.4

Bulgarian Development Bank 1 263.5 2.5%

state-owned

2.5%

1 2

63.5

50 0

08.4

UniCredit BulbankDSK BankEurobank BulgariaUnited Bulgarian BankRaiffeisenbank BulgariaSociete General ExpressbankCibankPiraeus Bank BulgariaAllianz Bank BulgariaProCredit Bank (Bulgaria)

9 763.7

6 212.3

3 794.5

3 757.8

3 577.7

3 287.8

1 850.8

1 552.7

1 308.8

1 004.2

19.5%

12.4%

7.6%

7.5%

7.2%

6.6%

3.7%

3.1%

2.6%

2.0%

1

2

3

4

5

6

7

8

9

10



ТОР-10

72.2% 36 11

0.3

50 0

08.4



4.58 4.53 4.48 4.44 4.40 4.38 4.32 4.23 4.17 4.083.99 3.97

Jan Feb Mar Apr May Jun Jul Aug Sep OctNov Dec


1.96 1.96 1.96 1.96 1.96 1.96 1.96 1.96 1.96 1.96 1.96 1.96

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec


Trade; repair of motor vehicles and motorcycles

Professional, scientific and technical activities


Agriculture, forestry and fishing

Accommodation and food service activities

Transport and storageElectricity, gas, steam and air conditioning supply

Construction

39

14

6

5

18

4

2

%

TOTA

L BA

NK

ASS

ETS


TOTA

L BA

NK

ASS

ETS

Manufacturing

33

Households and NPISHs

2

0.3Other

COuntrY OvErviEw - Bulgaria Banking industry


SME Banking Club


15 985



41.0%

6 530 27 13

Total SME

% BGN% EUR


Q I 2016 Q II

2016 Q III 2016 Q IV

2016 end of period

COUNTRY BUSINESS LOANS PORTFOLIO, SME INCLUDED, MLN.EUR

4.6 4.5 4.44.2

4.0

3.94.1

4.34.5

4.6

Share of active banks in SME

2013 2014 2015 2016 2017

17 96415 903 15 653 15 713 15 985

COuntrY OvErviEw - Bulgaria sme Banking


SME Banking Club

UniCredit BulbankUnited Bulgarian Bank

0

50

100


1 – UniCredit Bulbank*2 – United Bulgarian Bank3 – Procredit Bank (Bulgaria)4 – Societe Generale Expressbank5 – Raiffeisenbank (Bulgaria)

6 – First Investment Bank7 – Postbank (Eurobank)8 – Cibank 9 – Allianz Bank Bulgaria10 – Piraeus Bank Bulgaria

BRANCHES

NUMBER OF BRANCHES

NU

MBER

OF S

ME C

LIE

NTS,

TH

OU

SAN

DS

0

500

1000

1500

2000

2500

1 2 3 4 5 6 7 8 9 10 2 7 8 1 4 6 5 9 10 3 0

50

100

150

200

Procredit Bank (Bulgaria)

* — 2016

Raiffeisenbank (Bulgaria)

Societe Generale Expressbank

First Investment Bank Postbank (Eurobank)

Cibank

Allianz Bank Bulgaria

Piraeus Bank Bulgaria

SME PORTFOLIO,

MLN.EUR

2 43

2.1

900.

5

704.

2

687.9

454.

3

447.4

291.5

262.

9

210.

1

133.

5

0 50 100 150 20019

0

187

185

168

159

155

134

96 73 10

COuntrY OvErviEw - Bulgaria toP Banks


SME Banking Club

Banking assets increased to BGN 97.8 billion (EUR 50 billion) in the course of one year. The market share of foreign subsidiary banks rose from 72.9 percent to 74.6 percent. The share of domestic bank assets rose slightly to 25.4 percent.

Efforts undertaken by banks to optimize their portfolios led to a gradual decline in the share and amount of non-performing loans. As of December 31, 2017, the amount of non-performing loans (excluding central banks and credit institutions) declined to BGN 5.65 billion (EUR 2.89 billion) in absolute terms, or to 10.07%, as the tendency for decline continued.

Interest rates on loans continued their decline in 2017. At the end of December 2017, the annual percentage rate, which includes an interest rate component as well as that of all other fees and commissions related to the loan, dropped to 4.01% for housing loans in BGN and to 4.44% for those in EUR. Average interest rates on new business loans for non-financial corporations fell to 3.71% for loans in BGN and 3.38% for loans in EUR. The decrease was from 3.90% and 4.16%, respectively. It could be concluded that lower interest rates increased lending activity. In combination with the favorable development of the Bulgarian economy, the lower interest rates provided additional grounds for accelerating lending activity.

Loan portfolio growth, the higher quality of the lending portfolio, lower impairments and declining interest rates influenced the financial result of the sector. As a result, at the end of December 2017, the net profit of the banking system was BGN 1.17 billion (EUR 598.2 million) compared to BGN 1.262 billion (EUR 645.3 million) in 2016. As of December 31, 2017, the value of Return on Assets (ROA) decreased to 1.2% from 1.42%, recorded as of December 31, 2016, and the Return on Equity (ROE) – to 9.32% from 10.57%.

Around 41 percent of banks worked with SMEs, but there was no publicly available information about the percentage of business loans that the SME sector accounted for. According to the 2017 SBA Fact Sheet by the European Commission on access to finance, Bulgaria is on par with the EU average. Compared to the previous year, some progress has been made. At the same time, it is still difficult to obtain public guarantees, and risk capital remains limited. Bulgarian SMEs are lagging behind in their access to alternative financings, such as crowdfunding.

UniCredit BulbankUnited Bulgarian Bank

0

50

100


1 – UniCredit Bulbank*2 – United Bulgarian Bank3 – Procredit Bank (Bulgaria)4 – Societe Generale Expressbank5 – Raiffeisenbank (Bulgaria)

6 – First Investment Bank7 – Postbank (Eurobank)8 – Cibank 9 – Allianz Bank Bulgaria10 – Piraeus Bank Bulgaria

BRANCHES

NUMBER OF BRANCHES

NU

MBER

OF S

ME C

LIE

NTS,

TH

OU

SAN

DS

0

500

1000

1500

2000

2500

1 2 3 4 5 6 7 8 9 10 2 7 8 1 4 6 5 9 10 3 0

50

100

150

200

Procredit Bank (Bulgaria)

* — 2016

Raiffeisenbank (Bulgaria)

Societe Generale Expressbank

First Investment Bank Postbank (Eurobank)

Cibank

Allianz Bank Bulgaria

Piraeus Bank Bulgaria

SME PORTFOLIO,

MLN.EUR

2 43

2.1

900.

5

704.

2

687.9

454.

3

447.4

291.5

262.

9

210.

1

133.

5

0 50 100 150 200

190

187

185

168

159

155

134

96 73 10

COuntrY OvErviEw - Bulgaria summary


SME Banking Club



COUNTRY OVERVIEW

SERBIACEE SME BANKING REPORT 2018

COUNTRY OVERVIEW

SERBIACEE SME BANKING REPORT 2018


INDUSTRY

Q I Q II Q III Q IV

Q ІVQ ІIIQ IІQ I



73,13 + 0,26 Registering Property


37.5

7.1

88.4

5 322.8

102.5%



1.9% 6.0% 67.1%55.0%51.0%



SERVICES ETC.


Indu

stry

Cons

truct

ion

Trad

e

Real

est

ate

Fina

nce

Info

rmat

ion

and

com

mun

icat

ion

Q ІVQ ІIIQ IІQ I

456.1441.7431.6401.2

Oth

er se

rvic

es

578.6483.6396.6278.0

2 138.9

2 095.4

2 063.4

1 851.2

1 615.7

1 578.8

1 512.5

1 380.4

825.3

785.7

728.3

701.5

283.7276.3305.9291.4

1 876.3

1 721.0

1 603.3

1 515.8

4 290.3 4 581.6 4 803.6 5 057.1

2 129.22 460.1

2 579.0

439.9

482.6

671.2 658.1

2 717.5

COuntrY OvErviEw - SErBia country overview


SME Banking Club



73.1

92.6

72.6

65.0

56.7

73.6

96.6

82.4

61.4

60.5

70.0

Enforcing Contracts


60

48

Overall43

Starting a Business





82 Paying Taxes





WORLD RANK 2017

WORLD RANK CHANGE

Serbia 54

EUROPE RANK 2018

Bulgaria 26

2

Hungary 17 2

EUROPE RANK 2017

EUROPE RANK CHANGE

2

1

1

56

28

15

27

18

12

28

19

10

2


2012 2013 2014 2015 2016 2017

3942 41 41

4042

05

1015202530354045

COuntrY OvErviEw - SErBia Business environment


SME Banking Club

4 767.9

3 116.2

3 061.9

2 430.8

2 233.6

1 767.2

1 366.7

1 337.4

1 185.8

1 035.9

16.8%

11.0%

10.8%

8.5%

7.9%

6.2%

4.8%

4.7%

4.2%

3.6%

1

2

3

4

5

6

7

8

9

10


ТОР-10

TOTA

L BA

NK

ASS

ETS


78.4%

22 3

03.4

28 4

40.2

state-owned

4 58

5.3

28 4

40.2

4 767.9

3 061.9

2 430.8

2 233.6

1 366.7

1 337.4

1 035.9

979.4

816.1

794.4

16.8%

10.8%

8.5%

7.9%

4.8%

4.7%

3.6%

3.4%

2.9%

2.8%

1

2

3

4

5

6

7

8

9

10



ТОР-10

66.2% 18 8

24.1

28 4

40.2



6.1 5.5

5.95.7 5.7

5.8 5.86.3

5.95.4

6.6

4.7Jan

FebMar Apr May Jun Jul

AugSep

Oct

Nov

Dec


Jan Feb Mar Apr MayJun Jul Aug Sep Oct Nov Dec


Distribution of electricity

ConstructionReal estate activity

TOTA

L BA

NK

ASS

ETS


TOTA

L BA

NK

ASS

ETS

Education3 116.2

1 185.8

119.0

98.8

65.5

11.0%

4.2%

0.4%

0.3%

0.2%

Agriculture

16.1%

Mining

Trade

Other

Intesa Bank SerbiaKomercijalna bankaUnicredit Bank SerbiaSociete Generale Bank SerbiaRaiffeisen Bank SerbiaAgroindustrijska komercijalna banka Erste Bank SerbiaEurobank SerbiaBanka Poštanska štedionicaVojvođanska banka (OTP Group)

Intesa Bank SerbiaUnicredit Bank SerbiaSociete Generale Bank SerbiaRaiffeisen Bank SerbiaErste Bank SerbiaEurobank SerbiaVojvođanska banka (OTP Group)Sberbank SerbiaProCredit SerbiaAddiko Bank Serbia

123.96 123.91 123.97 123.17 122.66120.85 120.40 119.18 119.37 119.31 119.41 118.47

29

2812

8

8

620.5 7

%

Komercijalna bankaBanka Poštanska štedionicaSrpska banka JUBMES banka MTS banka

Transport

COuntrY OvErviEw - SErBia Banking industry


SME Banking Club


17 500


31.7% 52%Share of SME Loans

5 500 29 15

Total SME

% RSD% EUR


Q I 2016

Q II 2016

Q III 2016

Q IV 2016

end of period


5.4 5.9 5.8 5.9

4.8

2.83.03.03.03.1


2012 2013 2014 2015 2016

3 887 3 6264 170 4 698

5 529

COuntrY OvErviEw - SErBia sme Banking


SME Banking Club


17 500



5 500 29 15

Total SME

% RSD% EUR


Q I 2016

Q II 2016

Q III 2016

Q IV 2016

end of period


5.4 5.9 5.8 5.9

4.8

2.83.03.03.03.1


2012 2013 2014 2015 2016

3 887 3 6264 170 4 698

5 529

Erste Bank

0

100


1 — Intesa Bank Serbia2 — ProCredit Bank Serbia3 — Sberbank Serbia4 — Erste Bank Serbia5 — Komercijalna banka

6 — Vojvođanska banka (OTP Group)7 — Raiffeisen Bank Serbia8 — OTP Banka Serbia9 — Eurobank Serbia10 — Agroindustrijska komercijalna banka

BRANCHES

NUMBER OF BRANCHES

NU

MBER

OF S

ME C

LIE

NTS,

TH

OU

SAN

DS

0

50

100

150

200

0

200

400

600

800

1 2 3 4 5 6 7 8 9 10 5 1 6 7 9 4 10 8 3 2

Intesa Bank Serbia

Komercijalna banka Vojvođanska banka OTP banka Srbija

Raiffeisen Banka

ProCredit Bank

Sberbank Serbia

Agroindustrijska komercijalna banka


884.

4

587.

0

468.

8

377.

6

217.

7

158.

2

142.

3

125.

7

90.8

65.6

0

40

80

120

3 1

120

102

NUMBER OF SME CLIENTS, THOUSANDS

216

158

105

87 85 62 62 55 33 25

0 50 100 150 200 250

Eurobank Serbia

COuntrY OvErviEw - SErBia toP Banks


SME Banking Club

At the end of December 2017, the Serbian banking sector included 29 banks with an operating license for a total of 1,627 business units. There were eight domestic commercial banks (six state-owned and two privately owned), as well as 21 foreign-owned banks.

Serbian banking sector stability has been preserved and further reinforced. Encouraged by the NBS measures, the share of NPLs in total loans plummeted to 8.8% at the end of April 2018 which is the lowest level since 2008 when this indicator of portfolio quality was introduced.

In 2017, the results of the Serbian banking sector at the end of Q3 2017 indicate that bank profitability has continued to improve. As of September 30, 2017, the banking sector’s pre-tax net result was RSD 53.5 billion, up by 63.1%% compared to the same period last year.

The balance of total assets in the Serbian banking sector at the end of December 2017 equaled RSD 3,369.4 billion (EUR 28.4 billion), an increase of RSD 127.9 billion (EUR 1.08 billion).

Despite falling interest rates, ROE increased to 10.6 percent in the first three quarters of 2017, compared to 3.4 percent during the same period in 2016. Improved profitability was mainly driven by declines in loan loss provisions, economic growth, a stable FX rate, as well as improving NPL ratios.

Around 52 percent of banks worked with SMEs and loans to SMEs accounted for 31.7 percent of business loans. Serbia’s performance in providing access to financing for SMEs was below average. In absolute terms, Serbia has recorded an overall deterioration in this area since 2008.

COuntrY OvErviEw - SErBia summary


SME Banking Club

COUNTRY OVERVIEW

ROMANIACEE SME BANKING REPORT 2018


INDUSTRY

Q I Q II Q III Q IV

Q ІVQ ІIIQ IІQ I


Doing Business Distance to Frontier (DTF)72.70

72.87 + 0.17 Registering Property


184.2

19.6

238.4

9 596.1

116.4%



6.9% 4.4% 62.8%52.8%42.3%



SERVICES ETC.


Indu

stry

Cons

truct

ion

Trad

e

Real

est

ate

Fina

nce

Info

rmat

ion

and

com

mun

icat

ion

Q ІVQ ІIIQ IІQ I

2 642.62 363.82 350.82 100.6

Oth

er se

rvic

es

5 702.0

2 573.1

1 461.91 088.0

13 762.6

12 385.0

10 415.5

7 977.4

10 106.1

8 267.4

8 845.1

7 108.4

3 856.6

3 720.8

3 446.23 115.2

1 410.61 273.91 227.71 236.5

11 890.2

10 606.9

9 607.9

8 294.1

9 065.3

21 854.9 25 477.6 26 232.8 29 906.1

11 877.4

14 958.0

639.5

1 041.8

4 931.4

1 439.9

19 464.6

COuntrY OvErviEw - rOMania economics


SME Banking Club



72.9

89.7

74.7

80.0

60.0

81.64

100.0

58.172.3

59.8

53.3

Enforcing Contracts


17

51

Overall45

Starting a Business





42 Paying Taxes




80.9


WORLD RANK 2017

WORLD RANK CHANGE

Romania 24

EUROPE RANK 2018

Hungary 17 2

1

Serbia 54 2

EUROPE RANK 2017

EUROPE RANK CHANGE

1

–

2

25

15

56

17

12

27

17

10

28


2012 2013 2014 2015 2016 2017

44 43 43 4648 48

05

101520253035404550

COuntrY OvErviEw - rOMania Business environment


SME Banking Club

14 5362

12 726.6

11 479.5

9 335.2

7 912.9

7 222.8

6 792.6

3 354.9

2 344.1

2 142.8

14.7%

12.9%

11.6%

9.5%

8.0%

7.3%

6.9%

3.4%

2.4%

2.2%

1

2

3

4

5

6

7

8

9

10


ТОР-10

TOTA

L BA

NK

ASS

ETS


78.9% 77 8

47.6

98 6

89.5

state-owned

7 98

4.6

98 6

89.5

14 536.2

11 479.5

9 335.2

7 912.9

7 222.8

3 354.9

2 344.1

2 142.8

1 963.9

1 441.5

14.7%

11.6%

9.5%

8.0%

7.3%

3.4%

2.4%

2.2%

2.0%

1.5%

1

2

3

4

5

6

7

8

9

10



ТОР-10

62.6%

61 7

33.8

98 6

89.5



3.8 4.0 4.1 4.1 4.03.7 3.7 3.8

4.0

4.4 4.6

4.8

Jan Feb Mar Apr MayJun Jul Aug Sep

OctNov

Dec


4,50 4.52 4.55 4.53 4.57 4.55 4.56 4.59 4.60 4.60 4.64 4.66



ConstructionIndustry

TOTA

L BA

NK

ASS

ETS


TOTA

L BA

NK

ASS

ETS

FinanceOthers

CEC BankEximBank

6 792.6

1 192.1

6.90%

1.20%Agriculture

8.1%

Banca Comercială Română (BCR)Banca TransilvaniaBRD (SocGen)UniCreditRaiffeisenING BankCEC BankAlpha BankBancpostGaranti bank

Individuals

Loans granted by credit institutions

% 41

25

17

6

43

5

Banca Comercială Română (BCR)BRDUniCreditRaiffeisenING BankAlpha BankBancpostGaranti bankOTP BankCity Bank

COuntrY OvErviEw - rOMania Banking industry


SME Banking Club

14 5362

12 726.6

11 479.5

9 335.2

7 912.9

7 222.8

6 792.6

3 354.9

2 344.1

2 142.8

14.7%

12.9%

11.6%

9.5%

8.0%

7.3%

6.9%

3.4%

2.4%

2.2%

1

2

3

4

5

6

7

8

9

10


ТОР-10

TOTA

L BA

NK

ASS

ETS


78.9% 77 8

47.6

98 6

89.5

state-owned

7 98

4.6

98 6

89.5

14 536.2

11 479.5

9 335.2

7 912.9

7 222.8

3 354.9

2 344.1

2 142.8

1 963.9

1 441.5

14.7%

11.6%

9.5%

8.0%

7.3%

3.4%

2.4%

2.2%

2.0%

1.5%

1

2

3

4

5

6

7

8

9

10



ТОР-10

62.6%

61 7

33.8

98 6

89.5



3.8 4.0 4.1 4.1 4.03.7 3.7 3.8

4.0

4.4 4.6

4.8

Jan Feb Mar Apr MayJun Jul Aug Sep

OctNov

Dec


4,50 4.52 4.55 4.53 4.57 4.55 4.56 4.59 4.60 4.60 4.64 4.66



ConstructionIndustry

TOTA

L BA

NK

ASS

ETS


TOTA

L BA

NK

ASS

ETS

FinanceOthers

CEC BankEximBank

6 792.6

1 192.1

6.90%

1.20%Agriculture

8.1%

Banca Comercială Română (BCR)Banca TransilvaniaBRD (SocGen)UniCreditRaiffeisenING BankCEC BankAlpha BankBancpostGaranti bank

Individuals

Loans granted by credit institutions

% 41

25

17

6

43

5

Banca Comercială Română (BCR)BRDUniCreditRaiffeisenING BankAlpha BankBancpostGaranti bankOTP BankCity Bank


43 040


16.5% 40.0%Share of SME Loans

7 109 35 14

Total SME

% RON% EUR


Q I 2016

Q II 2016 Q III

2016 Q IV 2016

end of period

3.7

COUNTRY BUSINESS LOANS PORTFOLIO, SME INCLUDED, MLN.EUR

4.0 4.0 4.0

5.0

2.62.4

2.83.13.1


2013 2014 2015 2016 2017

31 06835 674 40 496 42 311 43 040

COuntrY OvErviEw - rOMania sme Banking


SME Banking Club

Raiffeisen

0

100

200

SME PORTFOLIO, MLN.EUR NUMBER OF SME CLIENTS, THOUSANDS

1 — UniCredit2 — CEC Bank3 — Banca Transilvania4 — BRD5 — Banca Comercială Română (BCR, Erste)

6 — Raiffeisen Bank Romania7 — EximBank8 — ProCredit Bank Romania9 — Bancpost (Eurobank)*10 — Alpha Bank Romania

BRANCHES

NUMBER OF BRANCHES

NU

MBER

OF S

ME C

LIE

NTS,

TH

OU

SAN

DS

0

300

600

900

1200

0

500

1000

1500

2000

0

50

100

150

200

1 2 3 4 5 6 7 8 9 10 3 4 8 2 4 3 5 6 1 9 10 7 8

ProCredit

2 13

3.5

1 72

1.3

922.

8

665.

3

663.

1

405.

5

229.

8

221.

1

166.

7

109.

4

0 200 400 600 800 1000

EximBank

248

133

6

1 02

2

760

529

529

454

156

149

130

21 7

CEC Bank

BRD

Banca Transilvania

Banca Comercială Română (BCR)

UniCredit

Bancpost

Alpha Bank Romania


* — 2016

COuntrY OvErviEw - rOMania toP Banks


SME Banking Club

A total of 35 banks operated in Romania at the end of 2017, 7 of which were subsidiaries of foreign groups and 2 fully or majority state-owned capital.

The total net assets of local banks went up by 8.6% in 2017, reaching RON 427 billion (EUR 92 billion). The overall non-performing loans ratio of local banks dropped to 6.4% at the end of December 2017, from 9.62% in December 2016. The loans to deposits ratio also went down from 79% in 2016 to 74.7% in 2017, as deposits increased faster than loans.

Romania’s banking system recorded an overall net profit of RON 5.36 billion (EUR 1.17 billion) in 2017, up by 31% compared to the previous year. This was the best nominal result ever for the local banks.

Banks in Romania ended the year with a return on equity (ROE) of 12.68%, up by 1.26 percentage points versus 2016, according to preliminary data released by Romania’s National Bank (BNR). The local banks recorded a better ROE only in 2008 when the indicator reached 17.04%. The return on assets (ROA) reached 1.32% at the end of 2017, up from 1.08% at the end of 2016.

Around 40 percent of banks worked with SMEs actively. There was no publicly available information about the percentage of business loans that the SME sector accounted for. Romania’s overall performance concerning access to finance lies within the EU average, the same as last year.

Raiffeisen

0

100

200

SME PORTFOLIO, MLN.EUR NUMBER OF SME CLIENTS, THOUSANDS

1 — UniCredit2 — CEC Bank3 — Banca Transilvania4 — BRD5 — Banca Comercială Română (BCR, Erste)

6 — Raiffeisen Bank Romania7 — EximBank8 — ProCredit Bank Romania9 — Bancpost (Eurobank)*10 — Alpha Bank Romania

BRANCHES

NUMBER OF BRANCHES

NU

MBER

OF S

ME C

LIE

NTS,

TH

OU

SAN

DS

0

300

600

900

1200

0

500

1000

1500

2000

0

50

100

150

200

1 2 3 4 5 6 7 8 9 10 3 4 8 2 4 3 5 6 1 9 10 7 8

ProCredit

2 13

3.5

1 72

1.3

922.

8

665.

3

663.

1

405.

5

229.

8

221.

1

166.

7

109.

4

0 200 400 600 800 1000

EximBank

248

133

6

1 02

2

760

529

529

454

156

149

130

21 7

CEC Bank

BRD

Banca Transilvania

Banca Comercială Română (BCR)

UniCredit

Bancpost

Alpha Bank Romania


* — 2016

COuntrY OvErviEw - rOMania summary


SME Banking Club

COUNTRY OVERVIEW

HUNGARYCEE SME BANKING REPORT 2018

COUNTRY OVERVIEW

HUNGARYCEE SME BANKING REPORT 2018


INDUSTRY

Q I Q II Q III Q IV

Q ІVQ ІIIQ IІQ I


Doing Business Distance to Frontier (DTF)72.13

72.39 +0.26 Enforcing Contracts


123.1

9.8

93.0

12 600.0

107.8%



4.0% 3.3% 80.5%52.9%90.4%



SERVICES ETC.


Indu

stry

Cons

truct

ion

Trad

e

Real

est

ate

Fina

nce

Info

rmat

ion

and

com

mun

icat

ion

Q ІVQ ІIIQ IІQ I

1 433.31 309.31 224.51 125.6

Oth

er se

rvic

es

1 833.11 393.91 146.8647.6

7 380.9

6 560.9

7 146.9

6 443.1

5 740.2

5 107.3

4 564.0

3 844.8

2 156.12 120.92 096.32 025.3

839.4853.6864.9863.7

8 419.6

7 843.0

7 779.3

7 320.1

7 090.7

15 179.5 16 528.9 17 234.1 18 588.6

8 293.87 954.8

679.2

920.71 318.4

1 155.4

9 214.1

COuntrY OvErviEw - HungarY economics


SME Banking Club



72.4

87.6

80.1

75.0

50.0

71.5

67.9

73.8

54.8

63.3

Enforcing Contracts


13

62

Overall48

Starting a Business





93 Paying Taxes


2. CORRUPTION PERCEPTIONS COUNTRY RANK 2017: 66 FROM 180(THE BEST 1, THE WORST 180)



WORLD RANK 2017

WORLD RANK CHANGE

Hungary 17

EUROPE RANK 2018

Serbia 54

2

Greece 79 6

2

2

EUROPE RANK 2017

EUROPE RANK CHANGE

1

–

15

56

73

12

27

32

10

28

32


2012 2013 2014 2015 2016 2017

55 54 5451

4845

05

101520253035404550

55

100.0

COuntrY OvErviEw - HungarY Business environment


SME Banking Club

24 840.8

9 806.3

8 856.6

7 025.9

6 650.9

6 430.4

5 427.3

3 221.8

1 968.7

1 144.3

21.2%

8.4%

7.6%

6.0%

5.7%

5.5%

4.6%

2.7%

1.7%

1.0%

1

2

3

4

5

6

7

8

9

10


ТОР-10

TOTA

L BA

NK

ASS

ETS


75 3

72.8

117

218.

2

state-owned

7 20

2.8

117

218.

2

9 806.3

8 856.6

7 025.9

6 430.4

5 427.3

1 968.7

1 144.3

776.1

682.2

397.9

8.4%

7.6%

6.0%

5.5%

4.6%

1.7%

1.0%

0.7%

0.6%

0.3%

1

2

3

4

5

6

7

8

9

10



ТОР-10

36.3% 42 5

15.4

117

218.

2

*Ranked by Total Assets, as of December 31, 2017** December 31, 2016


2.2 2.1

2.2 2.3 2.3 2.3 2.32.4 2.4

2.3 2.2 2.2

Jan Feb

MarApr May Jun Jul

Aug SepOct

Nov Dec


Jan Feb Mar Apr May JunJul Aug

Sep Oct Nov Dec


TOTA

L BA

NK

ASS

ETS


TOTA

L BA

NK

ASS

ETS

4 218.6

2 984.2

3.6%

2.5%

6.1%

311.00307.71 308.70 311.55 307.78 308.87

304.82 306.14311.23 311.42 312.68

310.14

OTP BankK&H BankUniCredit Bank HungaryErste Bank HungaryMKB BankRaiffeisen Bank Hungary**CIB Bank HungaryBudapest BankFHB BankSberbank Hungary

K&H BankUniCredit Bank HungaryErste Bank HungaryRaiffeisen Bank Hungary**CIB Bank HungaryFHB BankSberbank HungaryCommerzbank**KDB Bank EurópaMagNet**

64.3%

MFB EXIM Bank

Other activitiesInformation and communicationElectricity, gas and steam supply, air-conditioningAccomodation and food service activitiesFinancial and insurance activitiesAgriculturalConstructionProfessional, scienti�c and technical activitiesTransportTrade


Manufacturing

%

23

20

188

7

5

5

4

21

3

3

COuntrY OvErviEw - HungarY Banking industry


SME Banking Club


20 800



12 300 35 8

Total SME

% HUF% EUR


Q I 2016

Q II 2016 Q III

2016Q IV 2016

end of period


2.2

1.9

1.7 1.6 1.7 1.6

2.2 2.32.4

2.2


2013 2014 2015 2016 2017

13 00012 200 11 500 11 300 12 300

COuntrY OvErviEw - HungarY sme Banking


SME Banking Club


20 800



12 300 35 8

Total SME

% HUF% EUR


Q I 2016

Q II 2016 Q III

2016Q IV 2016

end of period


2.2

1.9

1.7 1.6 1.7 1.6

2.2 2.32.4

2.2


2013 2014 2015 2016 2017

13 00012 200 11 500 11 300 12 300

K&H (KBC) Bank

MKB Bank

Budapest BankErste Bank Hungary OTP Bank Hungary

MFB Hungary

UniCredit Bank Hungary

* — 2016

0

40

30

20

10

50


1 – K&H (KBC) Bank2 – MKB Bank3 – Budapest Bank4 – Erste Bank Hungary

5 – OTP Bank Hungary6 – Raiffeisen Bank Hungary*7 – MFB Hungary*8 – UniCredit Bank Hungary*

BRANCHESNUMBER OF SME CLIENTS, THOUSANDS

NU

MBER

OF S

ME C

LIE

NTS,

TH

OU

SAN

DS

0

10

20

30

40

50

0

100

200

300

400

500

0

500

1000

1500

2000

1 2 3 4 5 6 7 8 8 6 2 7 5 1 4 3 6 2 8

1 99

1.7

1 69

8.5

1 10

9.2

586.

9

565.

7

298.

1

197.

3

34.2

49 45 44

442

362

207

148

100

71 69 54

0 100 200 300 400

NUMBER OF BRANCHES

Raiffeisen Bank Hungary


COuntrY OvErviEw - HungarY toP Banks


SME Banking Club

There are 35 banks in Hungary, 23 of which hold significant foreign capital (foreign investors own 44.6 percent of total assets). Total assets of the bank sector stood at HUF 36.354 trillion at the end of last year, up 6% from January 1, 2017. Net assets were up 12% at HUF 4.188 trillion during the period.

Corporate lending grew at a rate of 10 percent in annual terms in 2017, owing to continued, significant (12 percent) growth in SME lending and expansion in the large company segment. The annual growth rate of the SME sector’s outstanding loans, including the self-employed, was 11.8 percent in 2017, while outstanding loans in the sector of micro, small and medium-sized enterprises in a narrow sense increased by 11.4 percent.

The MNB also noted that the ratio of non-performing loans (NPLs) in Hungarian lender portfolios fell to 6.6% at the end of December, down from 10.0% on January 1. The ratio in the corporate portfolio dropped from 12.8% to 7.2%, while the ratio in the retail portfolio declined from 14.9% to 10.9%.

The annual average return on assets (ROA), calculated from the unaudited after-tax profit using the accumulated method, was broadly unchanged at 1.8%. The average yearly return on equity (ROE) fell slightly to 16.1% at the end of 2017.

According to the 2017 SBA Fact Sheet by the European Commission on access to finance, Hungary has experienced significant improvements in this SBA principle since 2008, with the share of rejected SME loan applications dropping from 9.1 % in 2009 to 6.6 % in 2016, and fewer businesses reporting a deterioration in the willingness of banks to provide loans. At the same time, the cost of borrowing for small loans relative to large ones increased from 50.2 % in 2015 to 65.3 % in 2016 and was the second highest in the EU.

COuntrY OvErviEw - HungarY summary


SME Banking Club


BANKINGGROUPS

CEE SME BANKING REPORT 2018

Number of branches

Countries of Eastern Europe where groups are present

BG PL RO RS TR CZ SI HR XK ME AL BA MK HU SK



RBI

UniCredit

KBC Group

ProCredit

Intesa Sanpaolo

Erste

237 454

156

134

168

375

71

158

87

25

787

10 7

30 52

26

75 48

28

117

201

129

287

1

132

54

6 11

113

98 71

54

207

76

190

125

230

7

47

62529 153517 148 271

78

Number of customers (ths.)

RBI

UniCredit

KBC Group

ProCredit

Intesa Sanpaolo

Erste

72 100

1 100

69

n/a

n/a

n/a

n/a

102

n/a

1 163

n/a

n/a

n/an/a

n/a

n/a

60

n/a6

n/a

n/a

10

130

9

49

111

10

15

SME Loan Portfolio, mln.EUR

RBI

UniCredit

KBC Group

ProCredit

Intesa Sanpaolo

Erste

1 551454

2 432

1 163

21

142

884

587

6 156

704 221

2 133

405

234

1 388 4 717

3 375

1 590

248 116

264

137 259

34

336

281

1 541

1 992

508 195

92

n/a n/a 45

n/a

62 n/a

n/a

n/a

n/a

n/an/a

n/a n/an/a 177 n/a 5

n/a

152

n/a

34 n/a n/a

298

n/a

378 2 247 480663 1 673 587

74

Bulgaria

Turkey

Romania

Serbia

Slovenia

Croatia

Albania FYRM

Bosnia & HerzegovinaKosovo

Poland

Czech Republic

Slovakia

Hungary

Rai�eisen Bank International (RBI)

UniCredit

KBC Group

ProCredit

Intesa Sanpaolo

Erste

Banking grOuPS regional structure


SME Banking Club

Raiffeisen Bank International in CEE countries in 2017

Number of branches Number of customers (ths.) SME Loan Portfolio, mln.EUR

ProCreditProCredit

KBC GroupKBC Group

Intesa Sanpaolo Intesa Sanpaolo

RBI

RBI

UniCreditUniCredit1 621

Erste1 680

Erste181.6

1 293.3

224.0

411.9

1 159.0

25.494

994

849

1 604

14.7Kosovo

Romania454

Poland237

190Slovakia

134Bulgaria

132Czech Republic

98Bosnia & Herzegovina

87Serbia

78Albania

75Croatia

71Hungary

48Kosovo

248.4Czech Republic

116.5Bosnia & Herzegovina

142.3Serbia

92.0Albania

74.5Kosovo

111.3Slovakia

Romania100.0

Poland71.9

69.0Bulgaria

45.0Hungary

Poland1151.2

454.3Bulgaria

Romania405.5

336.2Slovakia

298.1Hungary

ProCredit

KBC Group

Intesa Sanpaolo

RBI

UniCredit

Erste4 355.2

17 298.9

6 811.1

4 283.6

3 718.9

2 612.3

Banking grOuPS raiFFeisen Bank international


SME Banking Club

UniCredit in CEE countries in 2017


10.0Czech Republic

26Slovenia

152.3Slovenia

787Turkey

168Bulgaria

Romania156

129Czech Republic

117Croatia


264.3Bosnia & Herzegovina71

Serbia

21.3Serbia

54Hungary

34.2Hungary

49.0Hungary

ProCreditProCredit

KBC GroupKBC Group


RBI

RBI


Erste1 680

Erste181.6

1 293.3

224.0

411.9

1 159.0

25.494

994

849

1 604

1 100.0Turkey

Romania2 133.5 6 155.6

Turkey

4 717.5Czech Republic

2 432.1Bulgaria

1 388.1Croatia

ProCredit

KBC Group

Intesa Sanpaolo

RBI

UniCredit

Erste4 355.2

17 298.9

6 811.1

4 283.6

3 718.9

2 612.3

Banking grOuPS unicredit


SME Banking Club

UniCredit in CEE countries in 2017


10.0Czech Republic

26Slovenia

152.3Slovenia

787Turkey

168Bulgaria

Romania156

129Czech Republic

117Croatia


264.3Bosnia & Herzegovina71

Serbia

21.3Serbia

54Hungary

34.2Hungary

49.0Hungary

ProCreditProCredit

KBC GroupKBC Group


RBI

RBI


Erste1 680

Erste181.6

1 293.3

224.0

411.9

1 159.0

25.494

994

849

1 604

1 100.0Turkey

Romania2 133.5 6 155.6

Turkey


2 432.1Bulgaria

1 388.1Croatia

ProCredit

KBC Group

Intesa Sanpaolo

RBI

UniCredit

Erste4 355.2

17 298.9

6 811.1

4 283.6

3 718.9

2 612.3

KBC Group in CEE countries in 2017


375Bulgaria207

Hungary

125Slovakia

281.0Slovakia

130.0Czech Republic

287Czech Republic

ProCredit

KBC GroupKBC Group


RBI

RBI


Erste1 680

Erste181.6

1 293.3

224.0

411.9

1 159.0

94

994

849

1 604

1 163.3Bulgaria


1 991.7Hungary

1 163.3Bulgaria

ProCredit25.4 ProCredit

KBC Group

Intesa Sanpaolo

RBI

UniCredit

Erste4 355.2

17 298.9

6 811.1

4 283.6

3 718.9

2 612.3

Banking grOuPS kBc grouP


SME Banking Club

ProCredit in CEE countries in 2017


7Albania

195.5Albania



Romania7

ProCredit

KBC GroupKBC Group


RBI

RBI


Erste1 680

Erste181.6

1 293.3

224.0

411.9

1 159.0

94

994

849

1 604

ProCredit25.4

28Kosovo

25Serbia

11FYRM

10Bulgaria

Romania6.3

8.6FYRM

10.5Albania

704.2Bulgaria

587.0Serbia508.2

Kosovo

259.2FYRM

Romania221.1

ProCredit

KBC Group

Intesa Sanpaolo

RBI

UniCredit

Erste4 355.2

17 298.9

6 811.1

4 283.6

3 718.9

2 612.3

Banking grOuPS Procredit


SME Banking Club

ProCredit in CEE countries in 2017


7Albania

195.5Albania



Romania7

ProCredit

KBC GroupKBC Group


RBI

RBI


Erste1 680

Erste181.6

1 293.3

224.0

411.9

1 159.0

94

994

849

1 604

ProCredit25.4

28Kosovo

25Serbia

11FYRM

10Bulgaria

Romania6.3

8.6FYRM

10.5Albania

704.2Bulgaria

587.0Serbia508.2

Kosovo

259.2FYRM

Romania221.1

ProCredit

KBC Group

Intesa Sanpaolo

RBI

UniCredit

Erste4 355.2

17 298.9

6 811.1

4 283.6

3 718.9

2 612.3

Intesa Sanpaolo in CEE countries in 2017


47Albania


Slovenia52

Slovenia233.9

1Czech Republic

33.8CroatiaRomania

30

230Slovakia

201Croatia158

Serbia

102.0Serbia

60.0Croatia

62Hungary

76Hungary


1 541.5Slovakia

884.4Serbia

ProCredit

KBC GroupKBC Group


RBI

RBI


Erste1 680

Erste181.6

1 293.3

224.0

411.9

1 159.0

94

994

849

1 604

ProCredit25.4 ProCredit

KBC Group

Intesa Sanpaolo

RBI

UniCredit

Erste4 355.2

17 298.9

6 811.1

4 283.6

3 718.9

2 612.3

Banking grOuPS intesa sanPaolo


SME Banking Club

Intesa Sanpaolo in CEE countries in 2017


62Serbia

377.6Serbia480.0

Slovakia

4.6Slovakia

Romania248.0

ProCredit

KBC GroupKBC Group


RBI

RBI


Erste1 680

Erste181.6

1 293.3

224.0

411.9

1 159.0

94

994

849

1 604

ProCredit

KBC Group

Intesa Sanpaolo

RBI

UniCredit

Erste4 355.2

17 298.9

6 811.1

4 283.6

3 718.9

2 612.3

ProCredit25.4

Romania529

517Czech Republic

271Slovakia

153Croatia

148Hungary

177.0Czech Republic


1 673.0Croatia

Romania663.1

586.9Hungary

Banking grOuPS erste


SME Banking Club

This report was produced by SME Banking Club with the greatest of care and to the best of its knowledge and understanding. However, neither Gidulyan Company and GG Company Sp. z o.o. nor its related entities (collectively, the “SME Banking Club”) is able to provide a guarantee with regard to its content and completeness, nor does it accept any liability for losses that might arise from the use of this information.

The opinions expressed in this material are those of SME Banking Club at the time of writing and are subject to change at any time without notice. Unless otherwise indicated, all figures are unaudited. This material is provided for informational purposes only and is for the exclusive use of the recipient. It does not constitute an offer or a recommendation to buy or sell financial instruments or services and does not release the recipient from exercising their own judgment.

The recipient is particularly advised to verify that the information provided is in line with their own circumstances with regard to any legal, regulatory, tax or other consequences, with the help of a professional advisor if necessary.

This material may not be reproduced either in part or in full without the written permission of SME Banking Club.

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and

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SME BANKING 2018 - TopLead