HVB Bank Serbia

Following the successful integration of Eksimbanka, acquired in 2005, HVB Bank Serbia grew by approximately 50% in 2006 to become the fifth-largest bank in the country.

Retail customers:

At year-end 2006 the bank already had more than 110,000 private and business customers. Lending volume expanded by over 40% and the bank’s market share rose to more than 7%. The deposit base grew significantly, by about 30%. The main focus in the business customers sub-segment was on account packages; branches will offer standardised products to these customers.

Corporate customers:

The number of corporate customers rose by 24% in 2006; strong growth was recorded in the mid-market segment where the bank built on know-how from Eksimbanka and set up an Italian Desk for Italian investors. In the large corporates segment, the bank recorded strong growth in the area of structured financing and visibly boosted its deposit base. The bank maintained its market leadership in real estate finance where its market share rose to over 30%.

International Markets:

The bank increased its market share to 20% and continued to be one of the major local providers of FX and money market products.

The high market share, the successful focus on hedging instruments and a customer base comprising leading international investment banks and global custodians put the bank in an excellent position to benefit from future market trends. Already in 2006, assets under custody and the number of customers more than doubled. As a result the bank maintained the top position in this business segment.

Outlook:

The strategic alignment as a universal bank will be retained. The bank aims to expand its position as one of the leading banks in Serbia over the coming years and to further increase its market share while defending its market leadership in International Markets and in real estate finance.

Under the new name “UniCredit Bank“ the bank will continue to expand its branch network on a selective basis.