Serbia Banking Sector Report 2016

  • ID: 3654300
  • Report
  • Region: Serbia
  • 36 Pages
  • Emerging Markets Direct
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Total Corporate and Household Deposits Increased by 7.1% to RSD1.72 Trillion


  • AIK banka
  • Banca Intesa Beograd
  • Eurobank Beograd
  • KBM Banka
  • MIRABANK Beograd
  • ProCredit Bank Beograd
  • MORE
The report covers developments in Serbia’s banking sector over the period April 11, 2015 - April 8, 2016. It includes, among others, discussion of sector-level indicators, market news, as well as detailed financial information for the three largest banks - Banca Intesa Beograd, Komercijalna Banka Beograd and Unicredit Bank Srbija.

All 14 participating banks passed a Special Diagnostic Studies (SDS) exercise, essentially an Asset Quality Review (AQR) programme that was undertaken in line with similar initiatives in many EU countries. The SDS adjusted capital ratios for all in-scope banks were above the regulatory minimum of 12%. In August, the central bank adopted an action plan for executing a government strategy for resolving non-performing loans (NPLs) in the banking sector.

M&A activity in Serbia’s banking sector included the acquisition of KBM Banka by two Serbian businessmen. The seller was Slovenia’s Nova Kreditna banka Maribor (NKBM) and the deal was signed in February. In January, Serbian lender AIK banka has acquired a 13.9% stake in Slovenia's Gorenjska banka. In June, Hungary’s OTP Bank signed an agreement to acquire the Serbian unit of Italy’s Findomestic Banca. Furthermore, the majority shareholders boosted their stakes in local Banca Intesa Beograd, Cacanska banka (renamed Halkbank Beograd) and AIK Banka.

Banks covered in the report include, among others, Banca Intesa Beograd, Komercijalna banka Beograd, Unicredit Bank Srbija, KBM Banka, AIK banka, ProCredit Bank Beograd, MIRABANK Beograd, Halkbank Beograd (formerly Cacanska banka), Sberbank Srbija, Telenor banka, Eurobank Beograd, Findomestic banka and Societe Generale banka Srbija.

Key points:
- Total gross assets of Serbia’s commercial banking sector increased by 3.7% to RSD3.43 trillion (€28.2bn) at end-2015
- Total loans to companies (excluding public enterprises) and households rose by a nominal 3.3% to RSD1.75 trillion at end-2015
- Total corporate and household deposits increased by 7.1% to RSD1.72 trillion
- The ratio of NPLs in total loans (gross principle) was 22.3% in November
- The capital adequacy ratio of Serbia’s banking sector was around 20% in November
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  • AIK banka
  • Banca Intesa Beograd
  • Eurobank Beograd
  • KBM Banka
  • MIRABANK Beograd
  • ProCredit Bank Beograd
  • MORE
- Regional Overview
- BIS reporting banks cut external positions vis-à-vis CESEE by 0.28% of GDP in Q3 2015
- Serbia Banking Sector Structure
- Regulations, Policies and Governing Bodies
- Serbia’s central bank introduces first interbank repo transaction
- All participating banks pass Special Diagnostic Studies exercise
- Serbian government adopts new strategy for NPLs in banking system
- Serbia launches IFC-supported programme to reduce NPLs, boost lending
- Macroeconomic Overview
- Banking Sector Developments in 2015
- Total assets up by nominal 3.7% in 2015
- Corporate, household loans up 3.3% at end-2015
- Serbian banks further ease credit standards* in Q4 2015 – bank lending survey
- Corporate, household deposits up 7.1% at end-2015
- Foreign assets, foreign liabilities drop at end-2015
- NPL ratio at 22.3% in November
- Capital adequacy ratio at around 20% in November
- Serbian banks report €61.7mn profit in 2015
- Deposit, loan interest rates on downward trend in 2015
- Market News
- Slovenia’s NKBM sells 89.53% of Serbia’s KBM
- Serbia's AIK banka acquires 13.9% stake in Slovenia’s Gorenjska banka
- Fitch affirms ProCredit Bank Beograd at B+, revises outlook to positive
- UAE Mirabank to support corporate sector and investments from UAE in Serbia
- Turkey’s Halkbank increases its capital at Serbia’s Cacanska Banka
- Serbian branch of Sberbank to provide favourable loans for purchases of Belarusian goods
- EBRD loans €60mn to ProCredit Bank in Serbia to support SME development
- Telenor banka in Serbia reaches 100,000 current accounts
- International Finance Corporation (IFC) loans €35mn to Serbia’s Eurobank
- Kosovo’s c-bank says local bank Jugobanka operates illegally
- Serbian banks will not automatically suffer from possible closure of Greek parents – c-bank
- Hungary’s OTP agrees to buy Serbian unit of Italy’s Findomestic Banca
- EBRD partners with Societe Generale to support €20mn project of Serbian micro businesses
- Serbian businessman Miodrag Kostic raises holdings in local lender AIK Banka to 77.93%
- Leading Market Players
- Banca Intesa a.d. Beograd
- Komercijalna Banka A.D. Beograd
- Unicredit Bank Srbija a.d. Beograd
- Comparative Matrix Top 3 Banks in Terms of Assets

- Table 1 Banks in Serbia, by total balance sheet assets, net, as of Dec 31, 2015
- Table 2 SDS – bank level results
- Table 3 Capital adequacy of the Serbian banking sector (in RSD bn)
- Table 4 Banca Intesa Balance Sheet, 2013 – 2015 (in RSD th)
- Table 5 Banca Intesa Income Statement, 2013 – 2015 (in RSD th)
- Table 6 Banca Intesa Key Ratios
- Table 7 Komercijalna Banka Balance Sheet, 2013 – 2015 (RSD th)
- Table 8 Komercijalna Banka Income Statement, 2013 – 2015 (RSD th)
- Table 9 Komercijalna Banka Key Ratios
- Table 10 Unicredit bank Srbija Balance Sheet, 2013 – 2015 (in RSD th)
- Table 11 Unicredit bank Srbija Income Statement, 2013 – 2015 (in RSD th)
- Table 12 Unicredit bank Srbija Key Ratios
- Table 13 Comparative Matrix, in RSD bn, as of Dec 31, 2015

- Figure 1 Key policy rate, annual inflation, %
- Figure 2 Total assets of Serbian banking sector, RSD bn, end-of-period
- Figure 3 Total assets to GDP, %
- Figure 4 Nominal loan growth, % y/y
- Figure 5 Interest rates in January 2015 – February 2016, %
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- AIK banka
- Banca Intesa Beograd
- Eurobank Beograd
- Findomestic banka and Societe Generale banka Srbija
- Halkbank Beograd (formerly Cacanska banka)
- KBM Banka
- Komercijalna banka Beograd
- MIRABANK Beograd
- ProCredit Bank Beograd
- Sberbank Srbija
- Telenor banka
- Unicredit Bank Srbija
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