Best bank:
Tatra Bank
Best debt house:
Tatra Bank
Best equity house:
CA IB
Best M&A house:
JPMorgan
During its 10-year existence, Tatra Bank fought its way into the top four of the commercial banks in Slovakia. Not only does it have a 10% market share of total assets, it is also one of the most profitable banks in the region with return on equity of 27.4%, and an increase of its net profit last year by 17.5% to Sk1.8 billion ($36 million).
Last year proved yet again that the strategy of Tatra’s majority owner Raiffeisenbank – building a local brand through organic growth – paid off. Tatra’s balance sheet grew faster than expected in 2000. It increased by 30% to Sk78 billion. Much of the growth was seen in retail banking where deposits grew by 55% to Sk61 billion, which gives Tatra a 12% market share — the second largest after ex-savings bank Slovenska Sporitelna, which was itself taken over by Erste Bank this January.
Tatrabank says it attracts customers with its extensive network of 77 branches, as well as a virtual banking service, which was launched in June of last year under the memorable name Eliot. Tatra is the only bank offering its own Visa credit cards, which it introduced last October.
Apart from a strong position in retail, Tatrabank can also boast the largest share of funds under management (Sk2.5 billion), and has become the main provider of real estate financing.
On the corporate banking side, Tatra is the second-largest corporate lender after Vseobecna uverova banka (VUB). It has an 18% market share in corporate lending and says that 160 of the biggest 200 companies bank with Tatra, which offers expertise in trade finance, project finance and off-balance sheet finance besides more basic investment and working capital finance.
Tatrabank also co-arranged a Sk3 billion state-guaranteed term loan for Slovenske Elektrarne, the main power producer, this April.
The bank is the number one market maker for bonds on the Bratislava stock exchange (18.2%), and number three in the money markets with 11.9% in swaps, forward trades and the spot market.
Since autumn 2000 clients can trade currencies via the internet.
Trading equities is much less exciting. The market produced a turnover of Sk38 billion in just five liquid shares. CA IB is the number one dealer with a 17.4% market share. And while many other brokers have pulled out of the market, CA IB still employs a local analyst.
There is more money to be made in corporate advisory. In fact, CA IB has one of the strongest M&A teams in Slovakia. Yet it does not win the award because JPMorgan snatched away the two most significant deals of the last 12 months. JPMorgan advised the government on the sale of 87% of the biggest bank, Slovenska Sporitelna, which went to Erste Bank for e425 million this January, and the sale of 94.5% of the second-largest bank, VUB, which was sold for e550 million to IntesaBci this June. The next banks on the government’s disposal list are the third-largest bank, Investicna a rozvojova banka (IRB), as well as Banka Slovakia and Postova banka. CA IB is adviser on the sale of IRB.
JPMorgan also advised, together with CA IB, the Hungarian oil and gas company MOL on acquiring Slovakia’s sole crude oil refinery Slovnaft for e300 million last September.
