Andrea Moneta, Managing Board Member, BA-CA Martin Mayr, Market Research, BA-CA London, 21 May 2006...
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Transcript of Andrea Moneta, Managing Board Member, BA-CA Martin Mayr, Market Research, BA-CA London, 21 May 2006...
Andrea Moneta, Managing Board Member, BA-CA Martin Mayr, Market Research, BA-CA
London, 21 May 2006
EBRD Annual MeetingRetail banking on the move:
the latest trends and developments in CEE
Part 1: The Group in CEE (A. Moneta) The leading banking network in CEE Retail banking is the growth driver in CEE business
Part 2: Market research – the latest trends and developments (M. Mayr) Banking penetration Usage of products and services Summary and outlook
Part 3: A strong force in retail banking (A. Moneta) The name of the game is innovation
Agenda
3
UniCredit is a Truly European Bank …
Thinking globally and operating on multi-local basis
Creating sustainable long-term value
Exploiting complementary nature of Group's best practices
Developing the best of local cultures and brands already recognized and established
Note: 2005 data1 Consolidated 2005 pro forma for UniCredit Group including HVB Group stand alone 12 months results, integration effects and other one-off costs2 Ranking as at 16 March 2006 - Source: Datastream
Banking operations in 20 core countries
28 million customers 7,184 branches 148,000 employees Net profit: € 3.4 bn1
Total assets: € 782 bn Deposits and debt
certificates: € 462 bn Loans: € 427 bn Global player in asset
management: approx. € 272 bn AuM with coverage in 20 countries in 5 continents
25th European company in terms of capitalization2
4
… with the by far most extensive CEE banking network...
CEE region1
€92.7bn total assets
2,932 offices
60,722 employees
~17million customers
Ranking, total assets and number of offices of BA-CA and UniCredit in CEE as of 31 December 2005
1 including - Banca Tiriac (Romania) - NBB (Bosnia/Rep.Srpska)- Yapi Kredi (Turkey)excluding- HVB Splitska banka (Croatia)
€8.9bn145
€1.5bn172
€529m42
€21bn574
€74mn1
€31.7bn1,281
PolandNo. 1
MacedoniaRep.Office
EstoniaNo. 6
€358mn1
€4.7bn30
€259mn8
€3.5bn322
LatviaNo. 10
RussiaNo. 8
Ukraine
BulgariaNo. 1
SerbiaNo. 5
€3.1bn128
Romania No. 3
€385mn2
LithuaniaNo. 8
CroatiaNo. 1
€3.4bn93
SlovakiaNo. 4
€1.9bn13
€4.1bn54
HungaryNo. 7
€7.4bn66
Czech Rep.No. 4
BosniaNo. 1
SloveniaNo. 7
TurkeyNo. 3
5
UniCredit Group has a particularly strong competitive advantage in CEE. Its size – in terms of revenues, total assets and branches – is more than double that of the second player.
4,982
14.8
18.0
33.3
24.7
34.8
83.7
19.7
2,864
1,715
1,420
1,126
1,660
1,110
826
N.A.
16.4
237
722
1,017
875
1,245
814
498
Revenues (Euro m) Total Assets (Euro bn) Branches (no.)
1,6591
39.71
1,5361
Source: Internal data - as at end of 2004 1 Including on a pro-forma basis the recently acquired Banca Comerciala Romana
… where it operates as the undisputed leader.
Central & Eastern Europe – Top Financial Groups (2004)
6
CEE markets offer a huge potential...
population
about 440 m
populationabout 160 m
Inhabitants 2005•Armenia 3
•Azerbaijan 8.3
•Bosnia 3.8
•Bulgaria 7.8
•Croatia 4.4
•Cyprus 0.8
•Czech Rep. 10.2
•Estonia 1.4
•Georgia 4.7
•Greece 10.6
•Hungary 10.1
•Kazakhstan 15.1
•Latvia 2.3
•Lithuania 3.5
•Macedonia 2
•Moldavia 4.5
•Poland 38.2
•Romania 21.7
•Russia 143.6
•Serbia 10.6
•Slovakia 5.4
•Slovenia 2
•Turkey 69.6
•Ukraine 47.6
•Belarus 9.9
7
...especially in retail banking: CEE revenue potentialREVENUE POOLS 2004 IN EURO MILLION
Aust
ria
RetailBanking
CorporateBanking
4,873
2,618
InvestmentBanking
1,024
Turk
ey
4,457
2,122
453
22%100%
0%
Note(s): Percentages on top of chart reflect share of country in total CEE revenue poolsSource(s): National banks; Economic Research Department BA-CA; BCG analysis
Rus
sia
3,563
3,503
1,315
26%
Pola
nd
2,768
1,727
960
17%
Hun
gary
1,746
714
312
9%
Cze
ch R
.
1,308
960
225
8%
Cro
atia
662
395
65
3%
Rom
ania
400
753
60
4%
Ukr
aine
417
479
12
Slov
akia
414
415
70
9%
126
123
319
277
127
287
299
397
2260
19
38%
51%
11%5
Slov
enia
Serb
iaBo
snia
Bulg
aria
3%
8
Household loans and deposits have grown strongly in recent years...
Household loans in CEE(Dec. 2000=100, local currency)
0
500
1.000
1.500
2.000
2.500
2001 2002 2003 2004 2005 2006
NMS (PL,CZ,HU,SK,SL)SEE(RO,BG,HR,SCG,BiH)Euro areaRussiaRegion total
Euro area5% cagr
NMS25% cagr
Russia90% cagr
SEE77% cagr
Total62% cagr
Household deposits in CEE(Dec. 2000=100, local currency)
0
100
200
300
400
500
600
2001 2002 2003 2004 2005 2006
NMS (PL,CZ,HU,SK,SL)SEE(RO,BG,HR,SCG,BiH)Euro areaRussiaRegion total
Euro area5% cagr
NMS6% cagr
Russia42% cagr
SEE36% cagr
Total26% cagr
Increase since 2000: household loans +62%, household deposits +26% p.a. compared to 5% in the euro area
9
Household deposits and loans(2000 and 2007 in EUR per capita)
1.3291.761
1.255
2.542 2.503
4.331
1.539
2.175
1.410
3.446
237
1.056
182631
122
1.082
524
1.417
478
1.208
240
2.004
406
2.198
210
1.408
710
3.019
683 617
127
887
9536
453
0
1000
2000
3000
4000
5000
6000
7000PL HU CZ SK HR BG RO RU CEE
Deposits 2000Loans 2000
Deposits 2007 Loans 2007
Source: BA-CA Economics Department, UCG New Europe Research Network
Euro area2005
14.100deposits
13.600loans
+7%cagr
+44%cagr
+12%cagr
+17%cagr
+29%cagr
+30%cagr
+17%cagr
+11%cagr
+20%cagr
+4.4%cagr*
* 2000 to 2005
...and the outlook for the retail sector remains positive
Part 1: The Group in CEE (A. Moneta) The leading banking network in CEE Retail banking is the growth driver in CEE business
Part 2: Market research The latest trends and developments (M. Mayr)
Banking penetration Usage of products and services
BA-CA loan barometer
Part 3: A strong force in retail banking (A. Moneta) The name of the game is innovation
Agenda
11
Study 1: Basic Tracking Retail Banking Markets
Universe: adult population aged 15 years and older Methodology: personal face-to-face interviews Samples: 5000 interviews/country Fieldwork time: January 2005 – November 2005 Agencies: Fessel&GfK (CZ, SK, CRO, BG, RO, UA, RU), RmPLUS (SLO, BiH, SCG), TNS
MODUS (HU) and SMG_KRC (PL)
Study 2: “ Loan Barometer“ - initiated by BA-CA
Universe: adult population aged 15 years and older Samples: 1000 interviews/country Methodology:personal face-to-face interviews Fieldwork time: January 2006 Agencies: Fessel&GfK (CZ, SK, BG, RO), RmPLUS (SLO, BiH, SCG), TNS MODUS (HU)
Market research: design of the studies
12
98
83 84
62
57
34
19
80
51
33
97 9799
81 81
6562
50
37
83
64
37
68
51
98 98
0
20
40
60
80
100
120
SLO CZ SK H PL RO BG CRO SCG BiH UA RU A D
2001 2004 2005
Banking penetration of retail clients at end 2005% of the population aged 15+ who have a business relation with a bank
Source: BA-CA Market Research, Fessel&GfK (A, CZ, SK, RO, BG, CRO, UA, RU), RmPlus (SLO, SCG, BiH), TNS MODUS (HU); SMG_KRC (PL)
average new EU markets2005: 78%
average candidates
& west Balkans2005: 52%
13
Size of population and number of bank clients
BG BiH CRO CZ H PL RO SCG SK SLO A D
Population aged 15yrs+ (in m) 6.7 3.1 3.7 8.2 8.5 29.9 17.9 6.7 4.2 1.7 6.7 64.7
Have bank relationship 37% 37% 83% 81% 65% 62% 50% 64% 81% 99% 98% 98%
Banked in m 2.5 1.1 3.1 6.6 5.5 18.5 8.9 4.3 3.4 1.7 6.6 63.4
Not banked in m 4.2 1.9 0.6 1.6 3.0 11.4 8.9 2.4 0.8 0.0 0.1 1.3
14
BG BiH CRO CZ H PL RO SCG SK SLO A D
Banked population 37 37 83 81 65 62 50 64 81 99 98 98
Any account 27*) 33 79 68 56 48 35 60 63 89 93 97
Current account 27 28 78 67 55 46 20**) 53 62 86 93 97
Bank card 26 15 66 64 44 40 28 27 49 86 78 82
E/I-Banking 0 0 5 8 2 6 0 1 6 9 24 17
Phonebanking 0 0 2 5 3 2 0 1 2 4 4 5
Account overdraft 0 3 46 10 6 8 1 15 7 51 N/A N/A
Penetration with banking products/services % of population aged 15+ who use this service/product by end 2005
*) 27% of adult Bulgarians have an account (current account or debit card account) **) RO: 15% use “card accounts“
Source: BA-CA Market Research, HypoVereinsbank, Fessel&GfK (A, CZ, SK, RO, BG, CRO, UA, RU), RmPlus (SLO, SCG, BiH), TNS MODUS (HU); SMG_KRC (PL)
15
Penetration with banking products/services% of population aged 15+ who use this service/product by end 2005
BG BiH CRO CZ H PL RO SCG SK SLO A D
Banked population 37 37 83 81 65 62 50 64 81 99 98 98
Any deposits 12 5 26 56 16 23 10 9 56 46 85 78
Sight deposits(savings book) 8 4 20 17 4 3 4 6 37 22 69 70
Time deposits 2 1 9 6 5 7 8 2 10 15
Securities 0 0 1 3 0 2 2 0 4 4 14 24
Any loansexcl. overdraft 7 7 22 9 12 15 16 9 7 22 20 24
Consumer loan 6 6 21 8 8 14 15 9 3 21 9 12
Mortgages 1 0 2 1 1 1 1 0 2 1 11 14
Source: BA-CA Market Research, HypoVereinsbank, Fessel&GfK (A, CZ, SK, RO, BG, CRO, UA, RU), RmPlus (SLO, SCG, BiH), TNS MODUS (HU); SMG_KRC (PL)
16
Trends in use of banking services/products
% of population aged 15+ who have ... note: figures do not represent volumes in €
24
63 64
4839
16
3852
81
27 33
7868
5648
35
60 63
89
0
20
40
60
80
100
BG BiH CRO CZ H PL RO SCG SK SLO
2001 2003 2005 ...any type of account
8
38
62
20 2316
9
67 64
125
26
56
1623
10 9
5646
0
20
40
60
80
BG BiH CRO CZ H PL RO SCG SK SLO
2001 2003 2005...any type of deposits (excl. account)
35
11
57
12
3 3 3
20
7 7
22
912
15 16
97
22
0
5
10
15
20
25
BG BiH CRO CZ H PL RO SCG SK SLO
2001 2003 2005...any type of loan (excl. account overdraft)
Source: BA-CA Market Research, Fessel&GfK (A, CZ, SK, RO, BG, CRO, UA, RU), RmPlus (SLO, SCG, BiH), TNS MODUS (HU); SMG_KRC (PL)
17
Planned investments
CEE BG BiH CZ HU RO SCG SK SLO
Holiday trip, sport activities 30 15 30 47 20 10 23 27 66
Education (own, of children, ...) 18 17 20 17 8 15 21 25 21
Larger household appliances(fridge, dish washer, ...) 17 10 21 17 8 13 25 20 26
Health (operations, teeth corrections, ...) 17 16 28 10 7 16 18 20 19
Larger electronical items(PC, TV set, ...) 15 11 19 13 7 10 23 14 22
Family events (weddings, big birthday parties, ...) 14 5 16 15 9 13 15 16 25
Furniture 14 8 15 13 2 9 18 18 23
Car 10 4 14 7 4 9 16 10 13
Plastic operation 1 0 2 1 0 1 1 1 0
Don’t know / No answer 32 48 25 31 47 52 18 13 13
Q: In which of the following items do you or our family plan to invest in the next 12 months? Basis: Total
in %
Source: BA-CA Market Research, Fessel&GfK (A, CZ, SK, RO, BG, CRO, UA, RU), RmPlus (SLO, SCG, BiH), TNS MODUS (HU), SMG_KRC (PL)
18
Way of financing
% savings % loans
Mainly by savings
•Holiday trip, sport activities 78 7
•Health (operations, teeth corrections, ...) 75 9
•Education (own, of children, ...) 76 10
•Family events (weddings, big birthday parties, ...) 78 7
By savings or loans
•Furniture 58 32
•Larger household appliances (fridge, dish washer, ...) 54 32
•Larger electronical items (PC, TV set, ...) 55 33
•Plastic operation 48 34
Mainly by loans
•Car 40 54
Q: How do you plan to finance these items? Basis: plan to invest in the following item
19
75
189 3
0
20
40
60
80
100
savings gift loan DK/NA
Planned financing Q: How do you plan to finance these items? Basis: plan to invest in the following item
Source: BA-CA Market Research, Fessel&GfK (A, CZ, SK, RO, BG, CRO, UA, RU), RmPlus (SLO, SCG, BiH), TNS MODUS (HU); SMG_KRC (PL)
78
197 2
0
20
40
60
80
100
savings gift loan DK/NA
Health
CZHUSLO
ROSCGBiHBG
ROSKBG
CZHUSLO
SCGBiH
CZHUSK
CZHUSLOHU
ROSCGBG
ROBG
CZHUSCGSLO
SCGHU
CZSK
Holidays, sports
20
Planned financing Q: How do you plan to finance these items? Basis: plan to invest in the following item
Source: BA-CA Market Research, Fessel&GfK (A, CZ, SK, RO, BG, CRO, UA, RU), RmPlus (SLO, SCG, BiH), TNS MODUS (HU); SMG_KRC (PL)
55
17
33
20
20
40
60
80
100
savings gift loan DK/NA
CZSKSLO
ROSCGBG
BGRO
CZSLO
SCGBiH
CZSKSLO
Large household appliances
40
13
54
6
0
20
40
60
80
100
savings gift loan DK/NA
CZSKHU
ROSCGBG
RO
HUSLO
SCGBGSLO
HUCZ
Cars
21
Gaps in banking penetration between countries in the CEE region still exist, but are becoming smaller.
Usage of consumer loans as well as demand for credits is significantly increasing.
The strongest need for loans to finance consumer goods was reported in Romania, Serbia and Montenegro, Bosnia and Herzegovina, and Bulgaria, while Czechs, Slovenes and Slovaks are more likely to use own savings.
“Saving discipline“ has become weaker; tendency to satisfy own needs is growing.
Summary and outlook
Part 1: The Group in CEE (A. Moneta) The leading banking network in CEE Retail banking is the growth driver in CEE business
Part 2: Market research – the latest trends and developments (M. Mayr) Banking penetration Usage of products and services Summary and outlook
Part 3: A strong force in retail banking (A. Moneta) The name of the game is innovation
Agenda
23
CEE is a huge market with high potential. With a clear strategy, every CEE country offers excellent opportunities for further growth in retail business.
The CEE region has big advantages compared to the “old” EU markets:It’s a new and “learning” market - CEE does not repeat the mistakes international banks made in their “old” home markets. Development processes are much faster.
UniCredit Group’s approach:
1) Innovation: Quick reaction to trends in the banking market Example: Introduce more diversified savings products (asset management, etc.).
2) New ways of distribution: Mobile Sales Force and Cooperation Channel to enlarge the sales capacity leveraging on new network structure Examples:
– Retail loans in Romania (almost 40% of the monthly new retail loan business comes from this channel)
– Mortgages in Bulgaria (around 25% of the new mortgage business is based on this channel)
3) Factory centralisation: getting benefits from economies of scale and sharing best practice in production process
– Example: Card Centre in Prague currently servicing the Czech Republic, Slovakia and Hungary
The name of the game is innovation
24
Customer satisfaction is the winning strategy
Customer acquisition is the game all banks play, but:
Customer satisfaction is the winning strategy.
We emphasise tailored service models for our customers and leverage the strengths and
the knowledge of the Group’s network:
Wide and innovative product offering, proven by our leading positions - e.g.:Number 1 in mutual funds (Poland), Number 1 in mortgage loans (Croatia), Number 1 in credit cards (Turkey), Number 1 in custody (Slovenia)
Service models with dedicated divisions
Physical proximity to our clients and 24 hour availability through state-of-the-art IT services and call centres
Special focus on recruitment and staff development