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The new CEE Division of BA-CA
(on a pro-forma basis for 2006)
- Present in 16 countries with a combined population of over 300 million
- Average risk-weighted assets: € 41 bn1)
- 39,000 employees Some 1,800 branches
- About 18 million customers
- Profit before tax exceeding € 1 bn
The integration of the CEE subsidiaries of UniCredit Group reflects the business combination of the parent companies. From the very beginning, as defined in the Business Combination Agreement (BCA), this has been a key element of the strategy pursued by the new Group. Clear governance rules are an essential prerequisite for operating successfully and managing such a complex banking group.
Governance:
The shareholders’ agreement of mid-March 2006 set the course. We then prepared the transfers of operations and swiftly implemented them – as described in other sections of this Annual Report – in several stages: the sale of HVB Splitska banka, effected to comply with merger control requirements, was followed by transfers of banks within the Group. Contrary to original plans, the transfer of Bank BPH to UniCredit became necessary to comply with additional requirements specified by the new Polish government. Then banking units were transferred to BA-CA on its way to assuming the sub-holding company function for the rest of the CEE region. The purchase of International Moscow Bank (IMB) and the Baltic subsidiaries from HVB was completed in January. And shortly before the editorial close of this Annual Report, we also completed the next important step, the arm’s length transfer of UniCredit subsidiaries to BA-CA.
The chart on the right shows that the new structure is clear-cut. A network with a historically grown multiple presence in six countries is being replaced by two UniCredit Divisions: Poland’s Markets (PM) under the UniCredit holding company, and the CEE Division established as a sub-holding structure in BA-CA, at the same time being a UniCredit Group division and identical with the CEE business segment of BA-CA.
The new structure simplifies management, facilitates cross-regional cooperation and provides the base for the emergence of a Group identity. The related mergers enable our banking subsidiaries to exceed the critical size in many countries. A connected region of the size of a sub-continent enables the Group to benefit from economies of scale and network advantages.
Geography: BA-CA’s new extended perimeter in CEE comprises 24 countries, with operating units active in 15 countries (and a representative office in Macedonia). The total population in these countries is 306 million; Russia alone has 144 million inhabitants, followed by Turkey with 73 million inhabitants. Nine countries are EU member states with a combined population of 64 mil
The new structure simplifies management, facilitates cross-regional cooperation and provides the base for the emergence of a Group identity. The related mergers enable our banking subsidiaries to exceed the critical size in many countries. A connected region of the size of a sub-continent enables the Group to benefit from economies of scale and network advantages.
Geography:
BA-CA’s new extended perimeter in CEE comprises 24 countries, with operating units active in 15 countries (and a representative office in Macedonia). The total population in these countries is 306 million; Russia alone has 144 million inhabitants, followed by Turkey with 73 million inhabitants. Nine countries are EU member states with a combined population of 64 mil lion, with Bulgaria and Romania accounting for 30 million. Poland and Ukraine (with a combined population of 87 million) are not included in this calculation because operations in these countries directly report to the UniCredit parent company.