The top one hundred insurers in Southeastern Europe (SEE) saw both their net profit and gross written premiums (GWP) grow in double digits in 2021, despite persisting challenges related to the coronavirus crisis and low interest rates. Their combined net profit rose by 26% to 599 million euro in 2021, from 475 million euro in 2020 and 497 million euro in 2019, outpacing the increase in GWP. Only eight of the top insurers closed the year in the red, while 38 recorded a decline in profits. In 2021, SEE’s biggest insurers registered 9.675 billion euro in GWP, 11.65% higher on the year and above the 8.8 billion-euro levels registered by the entrants in the ranking in 2019. Just nine insurers reported a decline in their GWPs in 2021.
Recent consolidations in the SEE region are confirming the continuous M&A trend. In Bulgaria, Postbank (member of Eurobank Group) acquired the Bulgarian subsidiaries of Alpha Bank and Piraeus Bank, and DSK Bank (part of OTP Group) absorbed Societe Generale Expressbank; while very recently the Belgian KBC Group expanded footprint by acquiring Raiffeisen Bank Bulgaria.
Adapting to the newly created conditions that influenced the implementation of some of its plans and ideas, Halkbank AD Skopje managed to achieve the goals set at the beginning of 2021 and showed excellent business results from operations.
In 2021, Halkbank AD Skopje reported credit growth of 12% and 10% increase of the deposit base. The credit support that the Bank provides to businesses in the country is reflected in the 18% increase in loans to legal entities, i.e. loans to small businesses. When it comes to loan products for households, the Bank registered an increase in housing loans of 25% compared to 2020. On the basis of the stated results, Halkbank booked 10.6 million euro profit in 2021, an annual increase of 18%. Its assets amounted to 1.182 million euro at the end of the year, which is an increase of 9% compared to 2020.
By Elizabeta Sabolek-Resanovic,Economic analyst at Raiffeisen Research With the NGEU instrument (and here above all the Recovery and Resilience Facility, RRF), an (initially temporary) initiative was created to support the rather low long-term potential growth of some Western European EU cou ...
As governments lifted pandemic-related restrictions and domestic demand started to recover, companies in Southeast Europe (SEE) closed 2021 with better-than-expected financial results. The top one hundred companies in the region posted a solid rise in sales and a remarkable growth in profits, exceeding the pre-crisis levels. The economic rebound benefitted most the companies operating in the oil and gas, electricity and metals sectors as demand for raw materials and energy jumped. At the same time, lingering supply chain disruptions continued to curb production in various sectors. In particular, for manufacturers of automobiles and car parts, traditionally among the top performers in the region, shortages of semi-conductors remained a pressing issue.
As social life returned to normalcy and economic activity picked up, banks in Southeast Europe saw their profits rise and their assets expand on the back of sustained growth in both lending and deposits. Like their global peers, the local lenders continued to play a major role in the redistribution of massive resources aimed to cushion the blow of the Covid-19 pandemic on businesses and clients. At the same time, pressure on interest margins and changing consumer habits strengthened the banks’ focus on efficiency and digitalisation. M&A deals picked up, with most of the action taking place in Serbia.
“New entrants and new habits among consumers combined with changing economies and regulatory environments are transforming banking services as we know them,” says Csaba Izbeki, Managing Director at Kyndryl Eastern Europe Territory. “Digitalisation is the foundation of these shifts. We see that today every financial services company – no matter if it is an established bank, or a startup challenger – is looking for new IT integration services and solutions that help automate operations, predict outcomes, prevent cyber-attacks and better manage increasingly diverse workloads and platforms on premise or in the cloud”.