Best bank – CSOB
Best local partner – Patria Finance
Best debt house – Deutsche Bank
Best M&A – Merrill Lynch
Best equity, local partner – Wood & Co
The Czech Republic’s banking sector included some strong performers in the past 12 months, particularly Komercni Bank, owned by Société Générale; Ceska Sporitelna, owned by Erste Bank; and CSOB, owned by KBC.
Komercni enjoyed enormous growth on the stock market, its stock price appreciating by 101% in 2002. But CSOB wins thanks to its 25% market share in corporate banking, its strong position in mutual funds, and its leading role in investment banking through its subsidiary Patria Finance. Patria has done by far the most M&A transactions in the country, including the acquisition of a stake in Ceska Sporitelna by Erste Bank, and is also one of the best banks for equity trading and research. It is the best local partner.
Merrill Lynch is the leading international M&A house, thanks to the advisory mandate on the e1 billion acquisition of eight power distributors from the government by CEZ. Merrill Lynch has not done as many M&A deals in the region as some other banks, but the ones it has done, such as this deal or BP’s merger with TNK, have been among the biggest in the region.
Deutsche Bank wins the best debt house award for its work in lending and arranging bond issues for the City of Prague, a credit that has capitalized on the demand for emerging-market debt in the past 12 months. Deutsche arranged a e170 million bond for the city in March 2003, as well as a e75 million loan in October 2002. It has a 50% market share in international koruna-denominated bonds this quarter.
Wood & Co maintained its lead as best broker on the Prague Stock Exchange, increasing its market share from 15% in 2001 to 22% in 2002. It is also making inroads into the corporate finance market, and advised on EDF’s acquisition of 49% of Stredoslovenska Energetika in Slovakia.
