Bank Austria Creditanstalt

In a highly competitive banking market dominated by foreign banks, Bank Austria Creditanstalt has continued to expand its businesses in Central and Eastern Europe and also improve its earnings across the region. The bank has built up the largest network in central and eastern Europe with 900 offices across 16 countries, employing more than 20,600 people and serving more than 3.5 million customers. Total assets in CEE amount to more than E25bn at the end of 2002, with the Polish subsidiary accounting for more than 40% and 560 branches.

While Bank Austria faces stiff competition from other Austrian banks and Unicredito Italiano, among others, it has been able to make some strategic acquisitions in the past year and show positive earnings growth. Its seven CEE subsidiaries in Poland, Hungary, Czech Republic, Slovakia, Slovenia, Croatia and Romania produced a 34% increase in pre-tax profits to E280.3m. In the first half, pre-tax profits rose to E90.7m, a return on equity exceeding 20%.

In 2002, Bank Austria acquired Splitska Banka in Croatia and Biochim in Bulgaria, merging it with HVB Bulgaria in December. It also opened a subsidiary in Bosnia-Herzegovina and, in March this year, opened a representative office in Macedonia. In June, it agreed to buy Central profit banka of Bosnia, and in August, it expanded its Croatian branch network by 32 branches, further strengthening its position in south-eastern Europe. With its prime position in the CEE in corporate financing, export finance and corporate bonds, Bank Austria looks set to continue its expansion in the region.

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