Best bank: Banca Intesa Beograd
Banca Intesa Beograd had standout year in 2023, launching a number of key initiatives and delivering another set of record results.
The bank delivered pre-tax profit of RSD23.8 billion ($219 million) – up 61% on last year’s previous record high – on a 36% year-on-year rise in total revenues to RSD51.5 billion.
This progress was largely due to higher rates and a 12% growth in assets, including 5% year-on-year growth in the bank’s loan portfolio, which all drove net interest income.
In turn, this performance translated to a return on equity of 20.5% – up from 11.2% in 2022 – and a return on assets of 2.4%, up from 1.6%. Contributing to this was a cost-to-income ratio of 31.3%, down from 37.8%.
Among several standout developments during the awards period were important initiatives in environmental and social-focused financing.
The bank launched a new credit product – called the S-loan – designed for corporates and small and medium-sized enterprises that are willing to commit to achieve certain environmental, social and governance targets in areas including renewable energy, green buildings, community support, sustainable engagement and employee training. By the end of the year, about RSD6 billion of S-loans had been disbursed.
In addition, the bank actively stepped up its lending to women and young farmers, provided around RSD1.6 billion in affordable housing loans to young people and signed financing agreements with the European Investment Bank, German development bank KfW and the European Bank for Reconstruction and Development to support SMEs, green projects, rural development and women’s entrepreneurship.
Digitalization has been another important investment area for the bank. Last year Banca Intesa Beograd broke new ground in the country, becoming the first bank to issue qualified electronic signatures for individuals via its digital banking app.
Best digital bank: OTP Bank
OTP Bank launched two new products and saw solid growth across its digital banking business last year.
The first, Goal Savings, allows customers to manage their savings goals on their mobile phones. The second is a pre-approved cash loan feature on OTP m-bank app. This feature notifies clients about pre-approved loans and allows them to complete the application process online.
The bank recorded over 79 million transactions last year and issued more than 1.13 million cards. It attracted 5,137 new payroll clients and grew transaction volumes by 35% to 11.8 million.
Best bank for SMEs: OTP Bank
OTP Bank expanded its small and medium-sized enterprise banking operations and invested in agricultural finance last year.
It wrote 1,393 SME loans over the awards period, marking a 3.6% year-on-year increase. This included 288 new trade finance loans to SMEs – a 38.8% increase on the previous year.
The bank signed a partnership with startup Agremo to create a software platform for agriculture. This platform uses satellite imagery for remote monitoring and analysis of agricultural production, providing critical data for agricultural loan approvals.
Best bank for ESG: Banca Intesa Beograd
Banca Intesa Beograd has shown a strong commitment to sustainable finance and environmental impact reduction.
The bank established an environmental, social and governance (ESG) committee to oversee all ESG-related activities. Chaired by the deputy chief executive, the committee has put in place internal procedures to ensure that various organizational units are assessing and managing exposure to ESG risks.
It has issued a range of ESG-related products, which account for 12% of newly launched offerings. It also provided €200 million in loans to projects linked to sustainable development goals.
The bank is currently implementing several projects aimed at reducing energy in its own operations, including solar panels on its buildings expected to save over 800,000 kilowatt hours annually. It has also replaced a large proportion of its car fleet with electric and hybrid vehicles.
Best bank for corporate responsibility: NLB Komercijalna Banka
NLB Komercijalna Banka demonstrated a focus on social responsibility and community support through philanthropic contributions aimed at fostering sustainability, entrepreneurship and housing security.
The bank allocated over €350,000 to philanthropy, benefiting around 4,500 individuals and impacting over 20,000 more.
A significant portion of these funds, approximately €100,000, was dedicated to supporting the sustainable initiatives of three regional businesses.
The bank also invested in the House of Opportunities farm project, contributing €60,000 to help young people grow organic food and achieve self-sufficiency. An equal amount was allocated to the adaptation of the inclusive and occupational centre Here’s the Hand in Pazova.
Addressing the housing crisis affecting the younger generation was another key focus for the bank during the year. The Real Opportunity to Live on Your Own campaign targeted individuals under 40, offering customized mortgage loans and a housewarming gift of RSD50,000 ($462).
Best bank for corporates: Banca Intesa Beograd
Banca Intesa Beograd has focused on assisting corporates with sustainable lending and support for their green infrastructure projects.
The corporate loan portfolio grew by 7% over the year and client numbers were up by 24%. A contributing factor to this has been the introduction of the S-loan programme, which offers pricing discounts to clients who met specific environmental, social and governance targets. So far, the programme has distributed €51 million.
The bank was involved in a €21 million financing for the construction of Delta House H, an energy-efficient office building in Belgrade. This eight-story building with two underground parking levels, achieved Gold LEED certification, underscoring the bank’s support for green infrastructure.
It also worked on a €4.1 million loan to modernize public lighting in Kanjiža and Bačka Palanka, and a €1.5 million loan to Stocar to build a biogas plant.
