Growth Strategies in Retail Banking

1

BUDAPEST

WARSAW

RIGA

BUCHAREST

TALLINN

VILNIUS

BRATISLAVA

SOFIA

PRAGUE

LJUBLJANA ZAGREB

BELGRAD

Growth strategies in retail banking

Business breakfast

Bucharest, May 17th, 2006

2

Agenda

A. Development of CEE banking market 9h15

B. Successful retail business models 9h30

Breakfast break 10h00

C. Potential development of Romanian retail banking 10h20

3

BUDAPEST

WARSAW

RIGA

BUCHAREST

TALLINN

VILNIUS

BRATISLAVA

SOFIA

PRAGUE

LJUBLJANA ZAGREB

BELGRAD

BUDAPEST

WARSAW

RIGA

BUCHAREST

TALLINN

VILNIUS

BRATISLAVA

SOFIA

PRAGUE

LJUBLJANA ZAGREB

BELGRAD

A. Development of CEE banking markets

4

The CEE banking market has experienced threedistinct phases

Banks

Customers

Foundation 1990-1995

• Countries start building fullfunctioning banking sector

• Foreign investors startentering the market

• Market focus on corporatebanking

• Consumer banking marketstill immature

Privatization 1995-2000 Consolidation 2001-...

• Privatization of stateowned banks

• Foreign banks start buyinglocal banks

• Bankruptcy of some newlocal banks

• Competition in corporatebanking increases

• Retail banking marketdevelops

• Competition heats up, especially fromforeign players

• Markets are "underbanked" incapitalization and product penetration

• International banks start to reviewtheir CEE strategy

• Corporate banking market becomesmature

• SME market segment starts fastdevelopment

• Huge potential perceived in retaillending market and investment fundbusiness

Phase 1 Phase 2 Phase 3

5

Bank privatization is almost complete in core CEEand Bulgaria, with the end in sight in Romania 2006

Source: Central banks, ECB, Raiffeisen Research “CEE Banking sector report, 2005

% banking assets controlled by the state, 2005

• Poland: the state reduced its majority stake inPKO through a public offering in 2004; soldstake in BGZ to Rabobank and EBRD

• Serbia: privatization took off in 2005, 4 smallbanks privatized din 2004/ 2005, Vojvodjanska(#4) up for sale

• Bulgaria: privatization complete in 2003

• Romania: CEC privatization ongoing, BCRcompleted

Comments

0,0%

23,9%21,0%

19,1%

5,0% 4,5%3,1% 2,0% 1,8%

SE PL SL RO CZ HR BG SK HU

Note: updated to reflect BCR’s privatization in 2005: :a stake of 62% of BCR was sold to ERSTE Bank;

6

Four groups of regionally-diversified CEE bankscan be distinguished

Local champions• OTP• PKO BP

Strong presence inselected markets• KBC• Erste Bank• Banca Intesa• ING

1

3

Comprehensiveregional players• UniCredito/ BA CA• Raiffeisen• Societe Generale• Citibank• Volksbank

Specialists andopportunisticplayers• Allied Irish Bank• BCP Millenium• Fortis• Credit Lyonnais• ABN Amro• BNP

2

4

Foreign banks with market share of 77 % in CEE countries!

= Asset share foreign banks,as of end 2004

• ERSTE• Raiffeisen• SocGen• ABN

Amro

• UniCredito• Banca Intesa• BA CA

• KBC• SocGen• BA CA

• Banca Intesa• Bayern LB• ERSTE• KBC

• UniCredito• BA CA• Citibank• ING

• ERSTE• KBC• SocGen• BA CA

• Banca Intesa• ERSTE• Raiffeisen

PL

CZ SK

SV HRHU RO

Overview foreign players

68%

94%97%

80%

89%

36%

91%

BG75%

7

A second wave of M&A activities is expected assmaller foreign banks will review their CEE strategy

Countries2005

Total Assetsin CEE, 2004

[EUR m]Banks

9

7

5

7

1

2

1

1

15,600

4,100

5,500

16,500

6,500

5,300

5,100

1,600

Notes: 1) Focus Poland/only small subsidiaries in other countries2) 2 as of 2005 (HU and BG)

1)

• Foreign players of small size/ with limitedpresence review their CEE banking strategy,might consider exit

• Second wave M&A activities expected/already happening (e.g. OTP’s appetite formore CEE assets, divestments by Unicreditin Croatia)

• Consolidation within foreign banking playersexpected

• Opportunities for “late entrants” or furtherconsolidation of the banking sector

2)

8

0

50

100

150

200

250

300

350

0 5 10 15 20 25 30

CEE markets are attractive because they areunderbanked compared to the EU

EURO zone

CZ HUPL

BG

Banking assets% GDP, 2005

HR

SK

75.913 EUR

Romania1.632 EUR

40CAGR*%

SV14.658 EUR

Notes: *2002-2005 CAGR for banking assetsThe size of the bubble represents the banking assets/capita

Source: Roland Berger Strategy Consultants, BA-CA CEE Report, ECB, Eurostat, Central banks

9

Romania is catching up with CEE average on retaillending, and the gap with EU fuels further growth

Retail lending as % of GDP Retail deposits as % of GDP

Source: ECB Monthly Bulletin, CEE Banking Sector Report 2005 by RZB Group, CEE Household Credit report by Unicredit

1210.4

8.3

6.5

5

4.4

1412.512.4

10.910

13.1

15.9

5.9

8.8

14.9

12.6

4.5

16.5

3.72.8

6.2

9.9

2.1

7.7

3.84.6

1.40.70.5

2000 2001 2002 2003 2004 2005

38.235.135.235.836.6

37.5

22.9

26.1

30.129.527.8

23.725.9

23.9

24.4 24.7

24.925.4

27.8

17.617.0

13.423.2

19.910.9

9.8

10.6 10.5 10.210.1

2000 2001 2002 2003 2004 2005

RO

BG

CZ

PL

HU

RO

PLHUBG

CZ

52.6% 54.4%EU 12 EU 12

Note: For EU 12, retail lending and deposits include non profit institutions serving households

10

Low mortgage penetration will drive growth in retaillending, probably more than consumer finance

Mortgage lending as % GDP [%] 2005 Consumer lending as % GDP [%] 2005

9.5

8.6

5.3

4.6

2.0

36.6EU 12

HU

CZ

PL

BG

RO

Source: Banking structures CEE (ECB), ECB Monthly Bulletin

Note: For EU 12, retail lending includes non profit institutions serving households* CAGR 2000 - 2005

10%

66%

50%

26%

124%

98%

11.2

9.5

7.4

6.2

5.8

16.0EU 12

BG

PL

HU

CZ

RO

4%

65%

10%

32%

33%

102%

CAGR* CAGR*

11

46.3%50.5%

53.3%56.7%58.9%61.0%62.8%

RO* PL SK BG HR HU CZ

Shrinking margins and high cost base will forceCEE banks to increase operational efficiency

Average interest spread Cost-Income Ratio, [%]

Source: National Banks, WOOD Company CEE Banks-” Managing South East”

45-50%EU bestpractice

20.6%

16.1%17.2%

11.5%14.7% 13.7%

6.4%9.2%

11.0%9.1%

12.7%11.1%

5.9%

7.2%8.8%

7.3% 6.7% 6.6%

0%

10%

20%

2000 2001 2002 2003 2004 2005

RO

BGPL

Note: * Calculated for top 10 banks

12

B. Successful retail banking business models

13

77%

58%

58%

50%

38%

31%

25%

25%

25%

19%

19%

12%

8%

8%

Staff, strategy, marketing & sales, distribution areviewed as key success factors in CEE

Staff

Strategy

Marketing&Sales

Distribution network

Speed/Time to market

Pragmatism

Customer base

Top success factors in CEE banking

Risk management

Front office processes

Back office processes

Cost management

Products

Internal organisation

IT

Comments

• Staff: management talent is scarce

• Strategy: universal bank or niche bank

• Marketing & Sales: transform branchstaff from administrators into sales-driven, customer oriented

• Distribution:– Usage of alternative channels is high

in CEE

– Modern trends regarding branchlocations: malls, supermarkets

– Invest in branch expansion to closegap with EU in terms of branchdensity

Source: ”Key factors for success of banks in CEE” by EFMA and zeb/

14

CEE banking markets are selling markets, with afocus on expansion and less on cost management

Strategy> Positioning: Universal or

niche bank?

1

Key success factors

2 Distribution> Alternative channels> Network optimization and

expansion

3 Marketing & Saleseffectiveness> Marketing/ Communication> Cross Selling> Sales empowerment


niche bank?

15

Most banks offer universal services, but specialistand niche players have also proven successful…Market Positioning– CEE examples

Comments

A Niche player, with focus on fewproducts and/or distributionchannels with competitive advantage

B Product specialist, with focus onfew products, but extensive,innovative distribution channels

C Focused player, on distributionchannel/client segments with broadproduct portfolio

D Universal bank, with a wide rangeof products and distribution channels

Focused player Universal

Niche player Product Specialist

Broad

Productportfolio

Narrow

NarrowDistribution channel/segment

Broad

C D

A B

STRATEGY

16

Focused player Universal

Niche player Product Specialist

2003: Offer basic account, loan an depositthrough mini branches – high marketingcost for branding

2004: Offer mortgage loan products of otherbanks (3rd party provider)

2005: Develop internet offer, credit cards

…which are sometimes interim stages on thedevelopment path to become a universal retail bankExamples of implementation strategies

Implementation strategies

Broad

Narrow

Narrow Broad

Step 1: Consumer finance through POSStep 2: Usage of intermediariesStep 3: Own sales units/branches, offer

deposits, enter micro companiessegment

Productportfolio

Distribution channel/segment

STRATEGY

17

Lukas bank of Poland focuses on consumer financeto build up a large customer base

• Installment loans to individual customers, forproducts and services purchase, cash and carloans, mortgage loan with a free of charge analysisof a loan application within short period

Product• Branch location in the centers of large and smaller

towns, areas close to shopping centers and blockof flats settlements

• Co-operate with more than 31,000 shops, servicepoints and networks of big department storeswhere customers can buy and finance the goods

Distribution

• Target: mass clients, high number of clients over 50years – low risk group as far as loan repayment isconcerned

• Plans to enter the segment of small enterprises• Implementation of a new central IT system

Customer

• Extensive promotional campaigns and highspending on marketing

• Substantial increase of revenue and profitability in2004; ROE 73%, net profit EUR 68 m

Results

Consumer finance(Credit Agricole)

large customer base

STRATEGY EXAMPLE

18

Provident Polska focuses on the low incomesegment and delivers cash loans at home

• Cash loan up to 1.250 EUR for max. 1 year, puremono-line

• Competitive interest rates, but very highcommissions; high effective interest rates (100-200%)

• Fast turnover, high margin, low interest rate risk –cash loans are small and short term

Product• Delivery and collection by representatives at

customers' home• Close contact with client through representatives• Representatives´ commission based on collection• Increasing network of small purely sales offices

(223) in the whole country

Distribution

• Target: low income segment• Value proposition: Easiness of getting the cash

loan – no bank account, no guarantors, relative fast(in 48 hours), only guarantee is the confirmationabout salaries from last 3 months

Customer

• Alternative approach to credit standing evaluation,base for the evaluation is the home of the client

• Simple, but effective risk management process(bad loans: market standard)

• Bad loans sold to companies specialized in thecollection of receivables

Risk Management

Cash loans for the lowincome segment

STRATEGY EXAMPLE

19

Polish credit unions (SKOKs) are also successful intapping the lower income segment

STRATEGY EXAMPLE

• Fast service through decentralized and simple processes• Attractive pricing• Internal stabilizing fund and guarantee system• New services: investment funds, life insurance, mortgage products

Implementation

Results• Fast growth and increased profitability in recent years• One of the most successful concepts for providing services in savings and deposit segment• A new competitor for traditional banks• Assets of SKOK now account for over EUR 1 bn• The number of members grew by 29% annually reaching 1,3 m members at the end of 2005• The number of cash desks and branches at the end of 2005: > 1.500

Strategy• Non-profit associations focusing on simple products targeted to low

income customers (members) and relying on personal relationships in local community• Favorable legal status for credit unions in Poland (no capital requirements, no income tax until

end 2006, etc.)

20

MultiBank built up its client base as an internetbank only – Outlets to support client acquisition

• Very innovative solution in the mortgage loanoffer – mechanism of balancing the loan amountwith client savings within the Multiplan

• High product flexibility – no fees required for earlyrepayment and currency change

Product• Multichannel access to the current account –

internet, branches (51), telephone banking, SMS,WAP

• Attractive branch style and equipment give clientsthe impression of high service quality and„closeness” to client

Distribution

• Target: middle and affluent segment - clearseparation of VIP clients (Aquarius Club) and smallenterprises

Customer

• Cooperation with the main intermediaries iscentrally coordinated – the bank cooperates mostlywith big intermediaries – Expander, Open Finance

Promotion

Internet bank withbranches for client

acquisition

STRATEGY EXAMPLE

21

0%10%

20%30%40%50%

60%70%80%

90%100%

1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46

GE Money exploits full potential of customer needsvia cross selling – Professional CRM programGE Capital Multiservis Czech Republic

• Customer applies forsales financeaccount at POS tobuy e.g. washingmashine

• Once acquiredcustomer gets"converted"

• Cross selling• Customer life cycle

program

Basic Idea

Drive customeracquisition by "salesfinance loan" products

Drive high conversionrate by automatic flip torevolving credit

Drive revolving by strongcash card accessfunctionality

Drive x-sell andreactivation by targetedoffers/ products

Realization by Multiservice

1

2

3

4

% of opening balance

Month on file

Card issued: 4th-6th month

1

2

3

4

x-sellloans

revolvers

STRATEGY EXAMPLE

22


niche bank?

1

Key success factors


expansion


23

Seg-ments/productsInvestment/InsuranceMortgage loans

Car loans

Consumer loans

Credit cards

Deposits

Alternative distribution channels offer a fasterpayback period with a lower investmentProducts and distribution channels – Assessment CEE

Combinations are difficult

POS 3rd party/sales agents

Mini offices/sales outlets

Standardbranches

Directaccess

Size

Combinations are possible

Investmentlevel

Lowinvestments

Lowinvestments

Mediuminvestments

Largeinvestments

Large initialinvestments

DISTRIBUTION

24

Eurobank has a “Supermarket-Banking” branchformat – small sales outlets in high traffic locations

Example „mini-office“ Configuration „mini-office“

ATM Sales person

Information material • Needed space: 8 – 12 m2

• ATM (about 50% with deposit function)• 2 work places with computer network access• Place to provide information material• Located in places with high visitor rate

(supermarkets, shopping centers …)• High marketing support of EUR 15 m (2004)

resulted in >300,000 clients in 2 years

Investments per „mini-office“

• ATM with deposit function USD 15.000• ATM without deposit function about USD 5.000• Other equipment for the office about USD

15.000

DISTRIBUTION

25

10% of all mortgage loans in the Polish market weregranted by intermediation of Expander in 2004

Comments

• Expander offers a full range of sales servicesfor deposits, insurance and mortgage loans:in 2004 10% of all mortgage loans weregranted by Expander

• It started in 2000 as an internet portal as theonly distribution channel, evolving into atraditional branch network of 23 outlets in2005

• Expander was bought by the GeneralElectric group in 2003

• Mainly middle class living in big cities hasused the services of Expander and itscompetitor “Open Finance”; people withaverage salary for Poland (about USD 600)use their services

Expander: Independent FinancialIntermediary

Value of loans in2004 USD 400 m

Average loanUSD 40.000

120 financialconsultants

21 branchesin 13 cities;4 years on themarket

Cooperation with20

banks and 70investment funds

Offer covers 90%mortgage

loans in Poland

DISTRIBUTION

26

• 100 outlets mainly in three Voievodships (out of 16)• Bank intends to gain in this way a closer access to the clients in the areas where the

bank does not have its own branch network• 350 new outlets by the end of 2005, total number of 600 outlets by 2006

Outlets anddevelopment

Productoffer

• 90% of all retail products (savings account, term deposits, credit cards, (cash) loans)• Servicing small business beginning of 2006

Organization • Partner incurs all the investment costs connected to setting up the branch• Partner employs staff and sets the level of salary• Bank offers the training for the partners opening the outlets• Break-even point reached as soon as after 3-6 months• Partner receives part of the transaction fees generated by the branch• Preferred locations: suburbs, large settlements of block of flats, shopping centers and

centers of small towns• All operations are carried out on-line and booked directly into the system of the Bank

Bank BPH is using franchising to expand its branchnetwork in suburbs and small towns

DISTRIBUTION

27

• Two types of agencies: so called ‘old’ type agencies – located in production plantsand ‘new’ type agencies accessible to all customers: approx. 3,000 agencies

• Established mainly in small towns where PKO BP does not have their own branchesand bigger cities in block of flat areas

• PKO BP plans to increase the number of products and services available troughthe agency (next to cash handling, opening accounts, loan applications, etc.)

• Agencies realize around 20% of all cash operations within the bank, 7% of savingaccounts, intermediation in loan sale – 20 000 loans in value of EUR 70 m p.a. (2004)

• Agency functions in the name of and on behalf of the bank PKO BP• A person interested in opening the agency has to be an entrepreneur (run a business)• Decision concerning setting up the agency is taken by the director of theregional retail department

• Agent must provide space for 1 cash teller, space for servicing client with adequatesafety measures (around 30 m2 with 2 employees), and has to rent a POS terminal

• The average investment in the outlet amounts to ca. PLN 10 000• PKO BP provides the agent with software, bank’s logo (free of charge), basic training• Agency cannot employ anyone without the bank’ s acceptance

PKO BP, the large savings bank increases accessby the set up of agencies point of sale

DISTRIBUTION

Outlets anddevelopment

Productoffer

Organization

28


niche bank?

1

Key success factors


expansion


29Notes: 1) Sample of selected Spanish and German big banks, 2004 2) Top 5 banks, 2004

Lessons learned from Spanish banks: Marketingexpenditure is linked to sales success

Share of advertising and communication costs to allnon-personnel costs [in %]1)

Spanishbanks

Germanbanks

6-10

100 100

17-23 20-31Premises costs

IT costs 16-26

...

Advertising/Communication

19-29

...

18-21

Polishbanks

100

...

25-33

10-15

Romanianbanks 2)

100

...

15-20

8-12

• Spanish banks have a highshare of marketing andcommunication costs

• Effective increase in brandrecognition and sales(Product campaigns, specialoffers for target groups, etc.)

• Increase in marketing andadvertising costs in the lastfew years (e.g. Santander+8% since 2002) at the sametime decrease in other non-personnel cost (e.g.Santander -9% since 2002)

Comments

1-4 5-8

MARKETING AND SALES EFFECTIVENESS

Average CIRretail segment 45% 76% 78% >80%

30

Notes: 1) Analyzed products: current account, deposits, mortgage loans,credit cards, consumer loans, investment funds, insurance etc.; 2) 2002

Cross-selling ratio is another important measure ofsales effectiveness

Source: Annual reports; Salomon Smith Barney

3.3

BancoPopular

Banesto BBVASantander BancoSabadell

Bankinter

3.42)

4.5

3.7 3.92)

6.3

Average ofRomanianbanks: < 2

• Mortgage loans as anchorproducts for cross selling

• Example: Santandercustomers with mortgageloans have six products inaverage

• Bankinter valueproposition: "Mostinnovative, highest quality,multi-channel convenience,personalized services"based on anchor productmortgage loans

• Usage and development ofsophisticated CRM-Tools

CommentsCross-Selling Ratios of selected Spanish banks, 2004 [retailsegment]1)


31

Variable remuneration for sales employees is asignificant lever to support sales culture

Variable remuneration for sales employees –EXAMPLES [%]1)

Source: Company's information

Notes: 1) Example of selected Spanish, Polish and German banks (retail segment)2) Very few Polish banks have variable part up to 50% values only for full time employees

15-45

Germanbanks

Spanishbanks

5-15

Polishbanks2)

10-30

Romanianbanks

10-20

• Variable remuneration share for salesstaff at Spanish banks is high (up to 45%)– significant driver of sales culture

• Example Santander

– Collective targets(for example market share in targetcustomer groups)

– Individual targets(dependent on specific employeeprofile)

– Customer satisfaction/-service(based on customer surveys everysix months)

Comments

Variable Fixed


32

BUDAPEST

WARSAW

RIGA

BUCHAREST

TALLINN

VILNIUS

BRATISLAVA

SOFIA

PRAGUE

LJUBLJANA ZAGREB

BELGRAD

BUDAPEST

WARSAW

RIGA

BUCHAREST

TALLINN

VILNIUS

BRATISLAVA

SOFIA

PRAGUE

LJUBLJANA ZAGREB

BELGRAD

C. Potential development of Romanian retailbanking

33

1,4%

3,8% 4,6%

7,7%

2.090

7.528

11.314

9,6%

Retaillending% GDP

Mortgage 590

Consumer

30.336

21.719

117% 40%CAGR

Growth in retail lending is expected to slow down,driven more by mortgage than consumer lending

Outstanding retail loans [m RON]

Note: * Estimated by Roland Berger Strategy Consultants based on maturitySource: NBR

1.5005.677

7.980

16.47422.120

1.851

3.334

5.246

8.216

2002* 2003* 2004 2005 2006E

• Mortgage loans account for only25% of retail loans in Romania,while in the EU the percentage 80%

• Consumer finance boom fueled bystrong demand for durables isexpected to slow down due torestrictive National Bank measures,market saturation on certainsegments, slow down in white goodsdemand

Comments

34

Competitive banking environment

Banks have to find the right strategic positioning;not everyone can be a universal bank!

Eurozone/ Global Retail Banking

= Asset size

Universal banks/financialsupermarket

Distribution

Prod

uct

Focus

Mortgagebrokers

Brokers

Mortgagebanks

Privatebank

Financialadvisors

Selfbanking

Niche banks

Niche Product Specialist

Universal

+–

+

–

Autobank

Romania

+

–

Prod

uct

Focus Universal

Cost Saver/ Niche Product specialist

BRD

CEC

HVB Tiriac

BancpostRZB

BT

Unicredit

+– Distribution

Alpha Bank

ABN

BCR

= Asset size

OTP

Unicredit+HVB Tiriac

Porsche BankProcredit

Raiffeisen Locuinte

35Source: National Central Banks; Bankscope

Branch density is almost at par with mature CEEbanking markets

• Low branch density relative toEU

• Plans for 500+ branchesannounced for 2006 (+16%)

High potential to improve branchdensity and increase revenueBUT investment and innovativebranch concepts required

CommentsBranch density [# per 100.000 inhabitants]1)

19

44

52

58

99

11

12

16

15

UK

FR

DE

ES

IT

CZ

PL

H

RO2)

Notes: 1) Incl. cooperative banks 2) 2005

36

Alternative distribution channels offer a fasterpayback period with a lower investment

Products and distribution channels – Assessment Romania

Seg-ments/productsInvestment/InsuranceMortgage loans

Car loans

Consumer loans

Credit cards

Deposits

Combinations are difficult

POS 3rd party/sales agents

Mini offices/sales outlets

Standardbranches

Directaccess

Size

Combinations are possible High competition Low competition

Investmentlevel

Lowinvestments

Lowinvestments

Mediuminvestments

Largeinvestments

Large initialinvestments

37

0%

10%

20%

30%

40%

50%

Credit cards and mortgages will be increasinglyattractive for retail banks

Corporate lending

Consumer lending

Life insurance

Non-life insurance

CreditCards

Leasing

Marketconcentration

Growthpotential

Market segment attractiveness overview

Mutual Funds

Deposits

Notes: Bubble size represents size of the business. Size of the cards business not defined.Market concentration measured by HHI (Herfindhahl – Hirschmann) index from 0 to 1; 0 Represents low market concentration.

Source: "Piata FInanciara", Insurance Supervision Commission, ASLR

Growing Attractiveness

Low Medium High

Mortgage lending• Some product groups require

more specialist know how suchas investment products

• Credit cards expected to boomdue to co-branded cards, anincreasingly attractive marketingtool for retailers and banks;smart cards and premium cardsare promising niche segments

Comments

38

Levers to grow profitably – cheaper distribution,product innovation, sales effectiveness

Optimize distribution4. • Use alternative distribution channels via third party agents,mini offices

• Customize branch format to target clients and location• Periodically reevaluate branch locations

Execution5. • Increase of sales efficiency in integrated multi channel concept• Strengthening of marketing/communication• Increase of sales resources and cross selling leverage of sales channels• Sales focus on performance (Incentives, activity controlling, etc.)• Tight processes; shortening response time• Risk management

Excellent clientsegmentation/ Focus ontarget groups

2. • Development of new segments (e.g. low income segment,agribusiness)

• Focus on SME client segments

Product Innovation3. • Using one product as an anchor, then cross sell• New innovative products (e.g. savings+ mortgage loan)

Choose the right strategicpositioning

1. • Positioning as a universal bank only if significant market sharecan be achieved; otherwise pursue niches

39

D. AppendixRoland Berger Strategy Consultants

40

network

A truly global company

Amsterdam I Barcelona I Beijing I Berlin I Brussels I Bucharest I Budapest I Detroit I Düsseldorf I Frankfurt IHamburg I Kiev I Lisbon I London I Madrid I Milan I Moscow I Munich I New York I Paris I Prague I Riga IRome I São Paulo I Shanghai I Stuttgart I Tokyo I Vienna I Warsaw I Zagreb I Zurich

31 offices in 21 countries

Revenues of EUR 530 m

1,630 employees

75% of all projects with cross-border challenges

41

ROLAND BERGER SALES GROWTH1970-2004

1970 1980 1990 2000 20041975 1985 1995

+17.1% p.a.

Repeatclients

76%

24%New

clients

EUR 530 m

Our clients' trust is the basis for our growth

42

CEE as a region of dynamic growth for RolandBerger Strategy Consultants

> One region

• One consultant pool(~100)

• Local knowledgecombined withinternational experience

• 14 languages

• Intensive know-howexchange

•Ljubljana •Sarajevo • • •

•Sofia

•

• Riga

Moscow•

•KievBratislava

Vienna

ZagrebBelgrade

Prague

Warsaw

Budapest•

ROLAND BERGER STRATEGY CONSULTANTSIN CEE

Bucharest••

•

43

Our clients in CEE include the world's leadingfinancial institutions

• Organizational realignment

Typical project topics:

• Post merger integration

• Credit risk management optimization

• Market entry strategies, internationaldiversification

• Sales and marketing strategies (includingSalesUp!)

• Strategic repositioning• Strategy

44

Thank you!

Amsterdam • Barcelona • Beijing • Berlin • Brussels • Bucharest • Budapest • Buenos Aires • Detroit •Dusseldorf • Frankfurt • Hamburg • Kiev • Lisbon • London • Madrid • Milan • Moscow • Munich •New York • Paris • Prague • Riga • Rome • San Francisco • Santiago de Chile • São Paulo • Shanghai •Stuttgart • Tokyo • Vienna • Warsaw • Zurich

Roland Berger Strategy Consultants SRLBlvd. Lascar Catargiu nr. 17Sector 1010602, BucurestiRomania

Growth Strategies in Retail Banking

Documents

Transcript of Growth Strategies in Retail Banking