The combination of Bank Aval and Raiffeissenbank Ukraine looks set to become the leading banking force in the country. Aval has total assets of €1573m at end-2004 and an 8.4% market share and Raiffeissenbank has assets of €627m and a 3.1% share. This gives them a combined market share of 11.5%, well ahead of current leader Privatbank with 10.4%.
The Bank Aval purchase, which is expected to be finalised by mid-October, is for an undisclosed price. The bank, which has a staff of 17,950, had about 1380 branches at the end of 2004.
RI chief executive Herbert Stepic said: “We already serve more than 5.6 million retail customers in the region. With the purchase of Bank Aval, this will increase by some three million additional clients.” With banking assets growing 30.2% in 2004 and representing 43% of GDP, he believes Ukraine represents a “huge, underdeveloped market with strong signs of growth”.
