Half of the cross-border banking groups active in Central, Eastern and
When asked about their long-term strategy, 50% of cross-border banking groups said they wanted to selectively expand, up from 45% in the previous survey and 30% in the one before that, while 40% planned to at least maintain the same level of operations in the region. Less than 10% of banking groups plan to selectively reduce activities in the region.
According to the survey, most banks see market potential in the region “medium”, though they are more optimistic about
The survey follows a series of M&A deals in both
Earlier in 2023, Eurobank, a Greek financial institution, completed the sale of its Serbian branch to AIK Banka for €280mn. Following this transaction, AIK Banka became the second-largest banking group in
The survey also reveals a tightening of credit supply in CESEE. Across the region, almost all countries, except
Meanwhile, credit demand from bank clients has remained resilient and is expected to improve slightly, the report said.
“The survey findings indicate that the tightening of credit supply that began in 2022 because of the war in
Contrary to earlier pessimistic expectations, credit quality has improved in the last six months. Nevertheless, due to a weakened economic outlook and higher interest rates, banks anticipate a rise in non-performing loans (NPLs) over the next six months.
Most regional subsidiaries, particularly in Czechia,
However, the outlook on profitability has deteriorated since the last survey, with over 50% of banks signalling lower profitability in various countries, including
Interviews for the survey were carried out in
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