Best bank: UniCredit Bank Mostar
Despite a local economic slowdown, Bosnia and Herzegovina’s banking sector remained healthy in 2023 for growth, profits and asset quality. It is a market that UniCredit Bank Mostar and Raiffeisen Bank dominate in terms of market share, and this year UniCredit – led locally by chief executive Amina Mahmutović – retains the award for the country’s best bank.
UniCredit made profit after tax of KM162 million ($89 million) in 2023, 44% higher than the year before. Revenues from both net interest income and fees and commissions rose healthily, the latter largely due to its cards business.
Gross loans to customers including leasing rose by 8% annually, while current accounts and customer deposits rose by 8.5% over the previous year. The bank’s return on equity reached 19.6% and its cost-to-income ratio was 43%.
Payments has been a particular focus of the bank, including expanding point of sale terminals among local small and medium-sized enterprises and rolling out Google Pay. It has also strengthened its mobile banking and bancassurance propositions, and implemented a new basic account for the underbanked parts of society.
The bank reports high customer satisfaction scores, and this year recorded a particularly strong increase in its net promoter score among corporate clients. In 2023, the bank launched a new initiative alongside the Swedish embassy aimed at addressing employment challenges among women and set up a grant programme to develop female entrepreneurship with the municipality of Nova Sarajevo.
Best digital bank: Raiffeisen Bank BiH
Raiffeisen Bank BiH achieved a high rate of digital adoption across its operations and has rolled out several new digital features. Approximately 40% of the bank’s client base – and 60% of new clients – used mobile banking in 2023. Around 86% of total transactions were completed digitally and over 75% were conducted via the mobile banking app.
The bank rolled out a card monitoring functionality, providing clients with the ability to block or unblock their card accounts as required.
It also launched a chatbot in its mobile banking app. This tool provides a 24/7 direct connection to customer support, ensuring queries and concerns are addressed promptly and efficiently.
Business banking is another key area of focus for digital investment. Raiffeisen has streamlined the application process for business cards, loans, current accounts and guarantees on its online platform for commercial customers. This has resulted in 90% of transactions in the small and medium-sized enterprise segment being completed digitally. The corporate segment saw an even higher digital adoption rate, with 96% of transactions being completed electronically.
Best bank for ESG: UniCredit Bank Mostar
UniCredit Bank Mostar actively supported its clients’ energy transition goals through credit lines for solar energy systems and electric and hybrid vehicles last year. It also conducted workshops to educate clients about financing opportunities for renewable energy in collaboration with Deloitte Bosnia and Herzegovina and SHPP.
The bank has partnered with the European Bank for Reconstruction and Development (EBRD) to launch the Go Digital in BiH and SME Go Green programmes. These initiatives fund digitalization and green transformation projects for small and medium-sized enterprise customers. The bank has also supported businesses in the tourism sector in partnership with USAID.
UniCredit made a significant contribution to infrastructure development by leading the consortium financing a portion of a highway connecting Budapest and Osijek. Supported by an EBRD investment grant of €150 million, which was matched by several commercial banks, this initiative is the largest infrastructure project in Bosnia and Herzegovina to date.
Best bank for diversity and inclusion: UniCredit Bank Mostar
UniCredit Bank Mostar has fostered a culture of wellbeing in its business and empowering women both internally and in wider society.
The bank launched the Fearless Culture programme, a key initiative aimed at identifying and managing common workplace fears. Led by the bank’s people and culture department and senior executives, this included workshops for all managers to foster a culture of fearlessness.
The bank also offers several internal programmes focused on employee wellbeing. These include FitPass cards, which provided free gym memberships, dietary counselling and mental health workshops. In addition, the bank offered employees three sessions of paid psychotherapy with certified external specialists.
UniCredit has championed women’s empowerment through various initiatives. One notable programme was Unemployed Women’s Empowerment, which addresses long-term unemployment among women. This programme, supported by the World Bank and co-financed by the Swedish Embassy, provided three months’ work experience and comprehensive training, leading to permanent positions for some participants.
The bank also demonstrates high levels of female representation in its business. Women occupied 68% of managerial positions and overall women made up about 60% of UniCredit’s workforce in 2023.
