Commercial Bank Biochim
It appears as though Commercial Bank Biochim’s (CBB) privatisation last year was the best thing that ever happened to it. Now part of the German bank HVB Group following a rapid integration phase, CBB outperformed its rivals by posting an 89% increase in net profit and a 52% rise in assets. Its ROE for 2002 was 24% – almost double the average of 13.77% for Bulgarian banks.
Customer satisfaction is a key factor behind the bank’s success. According to a recent survey of corporate clients, CBB ranks highest among Bulgaria’s top five banks in terms of customer satisfaction. Moreover, 97% of the bank’s corporate clients say they are considering expanding their business ties with CBB.
CBB’s technology is as impressive as its profitability. It has a centralised information and payments system for electronic debit cards, saving it the cost and trouble of relying on an outside supplier. As a result, its issuance of debit cards has nearly doubled and the transaction volume on the cards has increased tenfold.
CEO Rumen Beremski said: “The excellent performance of Biochim in 2002 is even more compelling considering the fact that last year was difficult because of the privatisation process and the merger with HVB Bank Bulgaria, which was done in record time – 2.5 months. What is even more important to us is the fact that this strong growth continues through 2003. The most compelling proof is the fact that between the privatisation and the end of June 2003, Biochim has increased its client base with 31%. This shows that the bank not only had the strength to win The Banker recognition for last year’s results, but that the engine of growth continues to work at full speed through 2003.”
The runner-up was Bulbank, whose strong performance included an increase in net profit by 14% and in lending by 50%.
