Banking and insurance market overview CEE and Romania

11 Aprilie 2011

ENSIGHT MANAGEMENT CONSULTING S.R.L.

Ensight Management Consulting has conducted at the beginning of 2011, an analysis of the banking and insurance market. The objective of the study is to understand the market evolution during the last years and to identify possible trends for the future short and medium term. The analysis was performed both at CEE level, in order to better understand the Romanian situation in the CEE environment, and at Romanian level, in order to understand the internal market and competition situation.

 

CEE banking market

BANKING MARKET SIZE IN CEE

• Although the European economy was affected by the economic recession, the general trend for banking assets in CEE was not descending as much as expected
• In 2009, total CEE banking assets increased in value by ~2%
• Poland, the CEE country with the most developed banking system cumulated at the end of 2009 258,21 billion EUR in banking assets
• Above the CEE banking assets average we can also find the Czech Republic, Hungary and Romania

Conclusion: The biggest banking markets in CEE are Poland, the Czech Republic, Hungary and Romania.

Source: EBF databases, 2009; Ensight analysis

BANKING LOANS IN CEE

• The overall trend of bank loans at the CEE level shows a moderate increase in 2009 of ~3%
• Hungary and Romania are the only countries that showed a decrease in total bank loans
• The initial evolution of the loans in CEE showed at first a decrease of consumer credit, followed by a decrease in corporate lending

• The distribution of bank loans according to loan category shows differences between the CEE country banking sectors
• While countries like Slovenia show an emphasis on the corporate sector, countries like Romania register a higher level of consumer credit

Conclusion: The focus area concerning bank loans differs from country to country (Romania shows a big focus on consumer credit).

Source: EBF databases, 2009; Ensight analysis

NON-PERFORMING LOANS IN CEE

* Non-performing loans ratio is calculated in this case as loan losses to total loans.

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