SME BANKING 2018 CENTRAL & EASTERN EUROPE Foreword

This is the second issue of the CEE SME It is not our intention to present a perfect Banking Report. The report is structured picture with this report, but we are sure that around Central and Eastern Europe with a we can achieve a clearer perspective on the detailed regional analysis of the following state of development in the SME banking countries: Bulgaria, Hungary, Poland, Romania, segment and its potential by working together. and Serbia. In the end, this will contribute to improving the efficiency of business management and the quality of managerial decisions by top managers of financial organizations, as well as When preparing the report, data from state generate greater interest in the segment from statistical services, central banks, annual both existing and new players. bank reports and other public sources of information were used. The data was current as of January 1, 2018; where information was Knowledge is power, and we will have achieved our goal if this unavailable as of that date, the latest available data on the bank information gives you more significant insights into your daily work was used. and strategic plans.

This report includes a series of annual reviews of regional markets, If you have any suggestions or proposals, allowing you to familiarize yourself with the situation in other feel free to send them to [email protected]. markets, in particular the СEE countries.

Yours sincerely, SME Banking Club team

CEE SME Banking Report 2018 2 SME Banking Club CEE SME BANKING REPORT 2018 BANKING OUTLOOK Banking Outlook Economics

Brief economic overview of key indicators Part 1

Bulgaria Poland Romania Serbia Hungary Czech Slovenia Croatia Kosovo Montenegro* Albania* Bosnia & FYRM Turkey Slovak Republic Herzegovina Republic

1.96 / €1 4.17/ €1 4.66 / €1 118.47 / €1 310.14 / €1 25.54 / €1 1.00 / €1 7.51 / €1 1.00 / €1 1.00 / €1 132.95 / €1 1.96 / €1 61.49 / €1 4.55 / €1 1.00 / €1 Source: http://www.bnb.bg http://www.nbp.pl http://www.bnr.ro https://www.nbs.rs https://www.mnb.hu https://www.cnb.cz http://www.bsi.si https://www.hnb.hr http://www.bqk-kos.org http://www.cb-cg.org https://www.bankofalbania.org/ http://www.cbbh.ba http://www.nbrm.mk http://www.tcmb.gov.tr http://www.nbs.sk

50.4 465.5 184.2 37.5 123.1 192.0 43.3 48.7 6.3 3.8 10.7 16.1 10.1 753.5 85.0 7.1 38.4 19.6 7.1 9.8 10.6 2.1 4.1 1.8 0.6 2.9 3.5 2.1 80.8 5.4 7.1 312.7 238.4 88.4 785.4 78.9 20.3 56.6 10.9 13.8 28.8 51.2 25.7 93.0 49.0

GDP (current prices, bln.EUR) Population, total (millions) Surface area (sq. km, thousands)

Economy structure Agriculture (current prices, bln.EUR) Industry (current prices, bln.EUR) Services (current prices, bln.EUR)

2.8 2.6 5.7 9.0 5.5 401.7 103.5 18.7 67.5 107.4 47.5 34.3 258.5 24.4 28.5

1.6 2.6 0.8 2.3 5.8 219.9 9.9 26.3 55.4 32.6 66.0 14.1 141.3 12.5 10.6

2.5 0.6 0.4 0.9 2.3 45.8 8.1 0.9 1.9 9.7 4.1 4.3 0.8 1.6 2.8

Source: http://www.nsi.bg http://stat.gov.pl http://www.insse.ro http://www.stat.gov.rs https://www.ksh.hu https://www.czso.cz http://www.stat.sie https://www.dzs.hr http://ask.rks-gov.net http://www.monstat.org http://www.instat.gov.al http://www.bhas.ba http://www.stat.gov.mk http://www.turkstat.gov.tr https://slovak.statistics.sk

* — 2016

CEE SME Banking Report 2018 4 SME Banking Club Banking Outlook Economics

Brief economic overview of key indicators Part 2

Albania 23% 7.3% Turkey 185.9% Poland 6.0% Serbia 102,.5% Kosovo 12% 5.0% Slovenia 108.1% Montenegro 10% 4.5% Czech Republic 105.3% 41.9 FYRM 9% 4.4% Romania 116.4% 52.3% 3.7% Bulgaria 101.2% Bosnia & Herzegovina 6% 3.6% Kosovo 101.5% Serbia 6% 3.5% Albania 99.7% 3.4% Slovak Republic 104.6% Turkey 6% 3.3% Hungary 107.8% Romania 4% 3.0% Bosnia & Herzegovina 103.0% Czech Slovak Bulgaria 4% 2.8% Croatia 102.7% Republic Republic 2.5% Montenegro 101.5% Croatia 3% 2.1% Poland 104.0% 95.3 Romania Slovak Republic 3% 0% FYRM 103.5% 54.5% 73.0 54.4% Hungary 3% GDP growth (annual %) Hungary 23.7 Poland 2% Inﬂation, GDP deﬂator (annual %) 52.8% Slovenia 2% 56.0 Slovenia 52.9% Czech Republic 2% 65.9 Croatia Agro share (% of GDP) 64.0% Bulgaria 36.9 Serbia Turkey 59.2% 46.2 Bosnia & 42.58 66.7% Herzegovina 55.0% 33.1 53.5% 52.9 Kosovo FYRM Czech Republic 88% 248.6 Poland 230.0 61.6% 152.2 Czech Republic 138.4 25.4 Slovak Republic 85% 56.8% 26.1 139.0 Turkey 207.0 64.5% Montenegro 41.7 Hungary 81% 111.3 Hungary 101.6 74.7% Albania Kosovo 80% 81.8 Slovak Republic 78.9 26.7 77.9 Romania 81.9 67.8% Slovenia 76% 69.5 Serbia 71.2 Croatia 74% 35.6 Slovenia 31.4 25.8 Bulgaria 27.8 Poland 73% 25.1 Croatia 24.0 SME density (per 1000 people) FYRM 72% 5.6 FYRM 6.9 SME's Share (value added,%) Turkey 70% 3.1 Albania 4.9 2.4 Kosovo 18.6 Bosnia & Herzegovina 70% 1.9 Bosnia & Herzegovina 3.0 Montenegro 68% 1.6 Montenegro 2.5 Serbia 67% Albania 66% Exports of goods and services (current prices, bln.EUR) Imports of goods and services (current prices, bln.EUR) Romania 63% Bulgaria 60%

Internet user's share (%)

CEE SME Banking Report 2018 5 SME Banking Club Banking Outlook Business Environment

Doing business rating Country Banking Overview

63.78 Bosnia & Herzegovina 64.20 +0.42 Starting a Business Number of banks 67.74 Albania 68.70 Number of banks with +0.96 Getting Credit Poland foreign owners 35 21 14 67.98 Turkey Number of banks 69.14 +1.16 Getting Credit in SME banking

71.65 Croatia 47 71.70 +0.05 Registering Property 38 Czech Republic 27 71.81 Bulgaria 71.91 +0.10 Getting Electricity 22 Slovak Republic Romania 72.13 Hungary 8 23 Hungary 35 35 26 14 72.39 +0.26 Enforcing Contracts 7 Slovenia 12 72.70 Romania 15 Croatia 24 29 Serbia 19 15 72.87 +0.17 Registering Property 23 15 Bosnia & Herzegovina 27 Bulgaria 15 11 72.87 15 10 Serbia 8 Montenegro Kosovo 8 73.13 +0.26 Registering Property 15 FYRM 11 16 71.54 Montenegro Albania 12 73.18 +1.64 Getting Electricity Number of branches Total assets, per 100 ths. adults (2016) bln.EUR Turkey 68.51 Kosovo 31.0 Poland 378.4 34 73.49 +4.98 Starting a Business 21 22.4 Czech Republic 274.5 75.15 74.90 Slovak Republic 18.1 Turkey 150.8 -0.25 Resolving Insolvency 14.7 Hungary 117.2 74.43 SME Overview 75.42 Slovenia 28.0 Romania 98.7 +0.99 Getting Credit Hungary 28.3 Slovak Republic 75.8 Poland NPL – 9.3% 76.24 12.3 76.27 Czech Republic 32.9 Croatia 53.4 NPL – 10.0% +0.03 Starting a Business 49.5 48.5 Bulgaria 50.0 Romania 77.12 NPL – N/A 77.30 Poland 30.5 Slovenia 37.9 7.1 +0.18 Starting a Business 29.7 Serbia 28.4 Bulgaria 81.39 28.9 Bosnia & Herzegovina 15.7 6.5 81.18 FYRM NPL – N/A -0.21 Getting Electricity 21.5 Albania 10.9

25.0 FYRM 7.5 SME loans, bln.EUR 5.5 Serbia 2017 The best/the worst NPL – 20.1% parameter 44.2 Montenegro 4.2 2018 Rating changes 20.0 Kosovo 3.9

CEE SME Banking Report 2018 6 SME Banking Club Banking Outlook TOP SME Banks

TOP SME BANKS* (RANKING BY SME PORTFOLIO) TOP SME BANKS* (RANKING BY NO. SME CLIENTS)

NO. SME # Bank SME Portfolio, Country # Bank clients, Country mln.EUR thsd.

1 PKO Bank Polski 7 096.8 Poland 1 PKO Bank Polski 1 192 Poland 2 Bank Zachodni WBK 4 334.8 Poland 2 CEC Bank 1 022 Romania 3 Alior Bank 3 074.9 Poland 3 Alior Bank 905 Poland 4 Bank BGŻ BNP Paribas 2 589.4 Poland 4 Bank Pekao 851 Poland 5 UniCredit Bulbank** 2 432.1 Bulgaria 5 BRD 760 Romania 6 Bank Millennium 2 304.1 Poland 6 Bank Zachodni WBK 576 Poland 7 mBank 2 282.6 Poland 7 Banca Transilvania 529 Romania 8 UniCredit 2 133.5 Romania 8 Banca Comercială Română (BCR, Erste) 529 Romania 9 K&H (KBC) Bank 1 991.7 Hungary 9 Bank BGŻ BNP Paribas 476 Poland 10 Idea Bank 1 799.3 Poland 10 Raiffeisen Bank Romania 454 Romania 11 CEC Bank 1 721.3 Romania 11 ING Bank Śląski 357 Poland 12 MKB Bank 1 698.5 Hungary 12 Bank Millennium 355 Poland 13 Raiffeisen Bank Polska 1 551.2 Poland 13 mBank 300 Poland 14 Citi Handlowy 1 189.1 Poland 14 Raiffeisen Bank Polska 237 Poland 15 Bank Pekao 1 174.3 Poland 15 Bank Pocztowy 214 Poland 16 Budapest Bank 1 109.2 Hungary 16 UniCredit 156 Romania 17 ING Bank Śląski 1 070.5 Poland 17 Bancpost (Eurobank)** 149 Romania 18 Banca Transilvania 922.8 Romania 18 Alpha Bank Romania 130 Romania 19 United Bulgarian Bank (KBC Group) 900.5 Bulgaria 19 Sberbank Serbia 120 Serbia 20 Intesa Bank Serbia 884.4 Serbia 20 Banca Romaneasca** 109 Romania

* - the rank was compiled only for banks from 5 countries, which were analyzed in details in current report,according to available open data. ** - 2016

CEE SME Banking Report 2018 7 SME Banking Club COUNTRY OVERVIEW POLAND

CEE SME BANKING REPORT 2018 Country Overview - Poland Economics

77,12 Doing Business Distance to Frontier (DTF) 77,30 +0.18 Resolving Insolvency

41.9 SME density (per 1000 people) 465.5 104.0% 4.6% 2.1% 53.0% 52.5% 73.0% 38.4 312.7 Inflation, GDP growth 12 100.0 GDP deflator (annual %) (annual %)

GDP (current prices, bln.EUR) Population, total (millions) Surface area (sq. km, thousands) GDP per capita (current price, EUR) Agro share (% of GDP) Export share (% of GDP) SME's share (value added, %) Internet user's share (%)

GDP by Production approach

Agriculture 2 483.3 Industry Services 2 155.9 AGRICULTURE, FORESTRY AND FISHING 2 477.9 2 542.0 INDUSTRY SERVICES ETC.

Mining 44 274.5 COUNTRY OVERVIEW 26 798.6 33 168.8 Trade 31 694.0 Finance 27 483.0 Construction Real estate Real Manufacturing 32 113.2

Q ІV supply etc. Water Transportation Transportation Q ІII gas etc. Electricity, Q IІ 20 187.5 18 673.4 Q ІV 23 105.7 Q I Q ІII activities Other service 18 648.2 Q IІ

POLAND and catering Accommodation 18 178.3 Q I 24 866.4 Information and communication Information 1 373.5 3 671.2 2 349.4 10 081.8 17 418.1 60 194.4 63 675.0 65 092.5 69 582.3 8 187.1 1 300.9 4 864.9 3 922.6 5 150.5 1 743.4 1 875.8 875.9 8 486.3 7 980.2 1 387.4 3 933.6 4 618.3 5 419.0 24 274.0 1 816.8 20 754.9 2 973.7 1 417.4 7 307.8 18 212.5 6 106.7 979.9 4 175.8 4 474.4 5 653.6 CEE SME BANKING REPORT 2018 2 163.9 4 039.0 969.9 4 185.5 5 492.1 823.6 2 974.1 3 768.5 4 649.5

Q I Q II Q III Q IV

Gross domestic product (current prices, mln. EUR) 107 262.5 111 935.4 115 125.0 131 216.2

CEE SME Banking Report 2018 9 SME Banking Club Country Overview - Poland Business Environment

1. MEASURING BUSINESS REGULATIONS DB 2018 Ranking (DOING BUSINESS RANK) The rating is measured on a scale of 190 to 1, 82.8 where 190 represents the worst result, and 1 is the best. 77,7 Distance to Frontier Ranking 2018 The remoteness of each country from the "frontier" is measured 7.3 on a scale of 0 to 100, where 0 represents the worst result, 7 and 100 represents the "frontier". 27 Overall 7 5 .4 ,2 Starting a Business 120 3 22 Resolving Insolvency 6 Dealing with Construction Permits 41 55 Enforcing Contracts

. Getting Electricity 54 0

1 Trading across Borders 0

1 1

. 4 Registering Property 38 51 Paying Taxes Getting Credit 29

51 Protecting Minority Investors

. 5 9

7 2. CORRUPTION PERCEPTIONS

7 . 1 6 COUNTRY RANK 2017:

36 FROM 180

5 . 0 (THE BEST 1, THE WORST 180)

61 62 62 58 60 60 3. GLOBAL PEACE INDEX 60 VISION OF HUMANITY RANK 55 50 45 COUNTRY WORLD RANK WORLD RANK WORLD RANK EUROPE RANK EUROPE RANK EUROPE RANK 40 2018 2017 CHANGE 2018 2017 CHANGE 35 Poland 32 33 1 22 22 — 30 25 Greece 79 73 6 32 32 — 20 Czech Republic 7 6 1 5 5 — 15 10 5 0 2012 2013 2014 2015 2016 2017 Corruption Perceptions Index 180 countries participate in the rating, the worst rating is 10 (Somalia), the best 90 (New Zealand, Denmark) CEE SME Banking Report 2018 10 SME Banking Club Country Overview - Poland Banking Industry

TOP10 BANKS - RANKED BY TOTAL ASSETS* TOP9 FOREIGN BANKS - RANKED BY TOTAL ASSETS*

1 PKO Bank Polski 71 113.0 18.8% 1 Bank Zachodni WBK 36 567.0 9.7% ТОР-10 ТОР-9 2 Bank Pekao 44 420.0 11.7% 2 mBank 31 477.0 8.3% 3 Bank Zachodni WBK 36 567.0 9.7% 3 ING Bank Śląski 30 181.0 8.0% 40.9% 4 mBank 31 477.0 8.3% 72.7% 4 Bank BGŻ BNP Paribas 17 424.0 4.6% 154 737.8

5 ING Bank Śląski 30 181.0 8.0% 275 173.0 5 Bank Millennium 17 039.0 4.5% 6 Bank BGŻ BNP Paribas* 17 424.0 4.6% 6 Raiffeisen Bank Polska* 11 741.8 3.1% 378 374.4

7 Bank Millennium 17 039.0 4.5% 378 374.4 7 Citi Handlowy 10 308.0 2.7% 8 Alior Bank 16 644.0 4.4% 8 Credit Agricole Bank Polska N/A N/A TOTAL BANK ASSETS TOTAL

9 Getin Noble Bank N/A N/A BANK ASSETS TOTAL 9 Eurobank N/A N/A 10 Citi Handlowy 10 308.0 2.7%

Total Assets, EUR Million Share of Total Assets, %

WEIGHTED AVERAGE INTEREST RATES FOR BANKS' LOANS IN 2017 (LCU) END OF MONTH EXCHANGE RATES IN 2017

3.9 4.33 4.32 3.8 3.8 4.25 4.31 Sep 4.22 4.26 4.25 3.7 4.21 4.23 4.21 3.7 Apr 3.7 3.7 Jan Feb 4.17 Sep 4.17 Mar Jul Aug Oct 3.6 3.6 3.6 Mar Apr Jun Nov Feb Jun Aug Oct 3.6 May Dec 3.5 Jan Jul Nov Dec May LOANS GRANTED BY CREDIT INSTITUTIONS TOP STATE-OWNED BANKS - RANKED BY TOTAL ASSETS* state- owned Other Mining 0.3 2.1% Hotels and restaurants 2 PKO Bank Polski 71 113.0 18.8% 3 32.0% Administrative activities 4 Bank Pekao 43 654.1 11.5% 121 232.4 Electricity, gas and heating supply 4 Manufacturing BOŚ Bank 4 713.0 1.2% Agriculture 4 Bank Pocztowy 1 752.3 0.5% 22 Information and communication 4 378 374.4 Transportation 5 % and storage

TOTAL BANK ASSETS TOTAL 6 Professional, scientiﬁc 19 and technical activities 8 16 Retail trade and repairs Total Assets, EUR Million Construction Share of Total Assets, % Real estate activities

*Ranked by Total Assets, as of December 31, 2017

CEE SME Banking Report 2018 11 SME Banking Club Country Overview - Poland SME Banking

56.5% 40.0% Share of SME Loans Share of active banks COUNTRY SME LOANS PORTFOLIO, MLN.EUR in SME

49 521 39 526 41 198 43 289 43 756

BUSINESS LOANS, MLN. EUR TOTAL NUMBER OF BANKS

88 000 50 000 35 14 2013 2014 2015 2016 2017

Total SME

WEIGHTED AVERAGE INTEREST RATES OF THE BANKING SECTOR (NEW BUSINESS, NON-FINANCIAL CORPORATIONS)

3.8 3.7 3.6 3.6 3.6

2.1 2.2 2.0 Q III end of period 1.7 2016 Q IV 1.4 Q II 2016 2016 Q I 2016

% PLN % EUR

CEE SME Banking Report 2018 12 SME Banking Club Country Overview - Poland TOP Banks

56.5% 40.0% SME PORTFOLIO, MLN.EUR NUMBER OF SME CLIENTS, THOUSANDS BRANCHES Share of SME Loans Share of active banks COUNTRY SME LOANS PORTFOLIO, MLN.EUR in SME 7500 500 1200

6000 400 539 439 308 246 180 179 72 16 14 4 1192 905 851 576 476 355 300 237 55 26 7096.8 4334.8 3074.9 2589.4 2304.1 2282.6 1799.3 1551.2 1189.1 1174.3 900 49 521 4500 300 43 756 39 526 41 198 43 289 600 3000 200

1500 100 300

BUSINESS LOANS, MLN. EUR TOTAL NUMBER OF BANKS 0 0 0 1 2 3 4 5 6 7 8 9 10 6 1 2 7 3 10 8 4 5 9 1 3 10 2 4 5 6 8 7 9 88 000 50 000 35 14 2013 2014 2015 2016 2017 1 — PKO Bank Polski 6 — mBank Total SME 2 — Bank Zachodni WBK 7 — Idea Bank 3 — Alior Bank 8 — Raiffeisen Bank Polska 4 — Bank BGŻ BNP Paribas 9 — Citi Handlowy PKO Bank Polski 5 — Bank Millennium 10 — Bank Pekao

mBank

WEIGHTED AVERAGE INTEREST RATES OF THE BANKING SECTOR (NEW BUSINESS, NON-FINANCIAL CORPORATIONS) 500 SME PORTFOLIO, Bank Zachodni WBK MLN.EUR 3.8 400 3.7 3.6 3.6 3.6 Idea Bank 300 Alior Bank 2.1 2.2 Bank Pekao 2.0 Q III end of period 200 1.7 2016 Raiffeisen Bank Polska Q IV 1.4 Bank BGŻ BNP Paribas Q II 2016 100 Citi Handlowy 2016 Bank Millennium Q I

2016 NUMBER OF SME CLIENTS, THOUSANDS 0 0 250 500 750 1000 1250 % PLN % EUR NUMBER OF BRANCHES

CEE SME Banking Report 2018 13 SME Banking Club Country Overview - Poland Summary

At the end of 2017, 35 commercial banks and 28 branches of Loan volumes to enterprises in the banking sector increased by credit institutions were operating in Poland. There were also 556 8 percent in fixed exchange rates, amounting to EUR 87.7 billion. cooperative banks operating in the domestic market. The market Around 40 percent of banks worked with SMEs, while SME loans share of state-owned banks (percentage of total assets) was 32 accounted for 57 percent of business loans, amounting to EUR 49.5 percent, while that of foreign-owned banks (percentage of total billion. assets) was almost 50 percent.

According to the 2017 SBA Fact Sheet by the European Commission, The NPL ratio of Polish banks has been steadily declining over Poland continued to perform well with respect to providing SMEs the last three years, reaching 5.9 percent in 2017, and this trend is with access to finance. Poland has taken many measures to ensure expected to continue. The decline of the SME NPL ratio accelerated access to funding since 2008, as this sector was considered a priority the previous year, dropping from 12.3 percent in 2015 to 10.0 percent for growth. There is now a wide range of financing sources available in 2017. to SMEs, such as loan instruments and state guarantees, grants and access to tax and export credits. Poland’s performance in this area is broadly in line with the EU average, with the country making progress in recent years. However, in 2016 some indicators fell. A higher percentage of rejected loan applications was recorded than in 2015, although bank loans and credit lines remain the most common ROE in the Polish banking sector fell from 7.76 percent in 2016 to sources of financing for SMEs. 7.07 percent in 2017, and ROA fell from 0.84 to 0.78 accordingly.

CEE SME Banking Report 2018 14 SME Banking Club COUNTRY OVERVIEW BULGARIA

CEE SME BANKING REPORT 2018 Country Overview - Bulgaria Economics

71,81 Doing Business Distance to Frontier (DTF)

71,91 + 0,10 Getting Electricity

46.2 SME density (per 1000 people) 50.4 101.2% 3.7% 3.7% 51.1% 66.7% 59.8% 7.1 7.1 Inflation, GDP growth 7 153.3 GDP deflator (annual %) (annual %)

GDP by Production approach 365.1 872.3 Agriculture Industry Services 431.0 3 194.0 AGRICULTURE, FORESTRY AND FISHING 3 394.0 220.4 3 144.4 INDUSTRY SERVICES ETC. 2 630.1 Q ІV Q ІV Q ІII 2 780.9

Finance 2 959.4 Q ІII Q IІ Industry 2 829.5

Real estate Real Q IІ Q I Construction Q I 2 807.5 2 395.4 2 658.7 Other service activities Other service

6 111.5 7 078.3 7 641.3 8 590.2 1 133.5 2 669.5 2 347.3 2 316.2 and communication Information 919.3 1 022.1 748.5 413.1 884.0 1 249.6 586.5 681.0

Trade, transportation, accommodation etc. accommodation transportation, Trade, 649.3 2 277.3 475.0 1 660.2 2 099.9 515.9 1 076.3 352.8 459.1 816.0

Q I Q II Q III Q IV

Gross domestic product (current prices, mln. EUR) 10 259.6 12 347.2 13 800.3 14 023.7

CEE SME Banking Report 2018 16 SME Banking Club Country Overview - Bulgaria Business Environment

1. MEASURING BUSINESS REGULATIONS DB 2018 Ranking 85 The rating is measured on a scale of 190 to 1, (DOING BUSINESS RANK) .4 where 190 represents the worst result, and 1 is the best. Distance to Frontier Ranking 2018 .0 The remoteness of each country from the "frontier" is measured 72 on a scale of 0 to 100, where 0 represents the worst result, and 100 represents the "frontier". 60.0 50 Overall 7 3 .0 .4 7 Starting a Business 95 50 Resolving Insolvency 6 Dealing with Construction Permits 51 40 Enforcing Contracts

4 Getting Electricity 141

. 8

21 Trading across Borders 7 9 Registering Property 67 90 Paying Taxes

Getting Credit 42

24 Protecting Minority Investors 9

0 0 . . 0 0 7 2. CORRUPTION PERCEPTIONS COUNTRY RANK 2017: 71 FROM 180 (THE BEST 1, THE WORST 180) 43 43 3. GLOBAL PEACE INDEX 41 41 41 41 VISION OF HUMANITY RANK 40 35 30 WORLD RANK EUROPE RANK EUROPE RANK EUROPE RANK COUNTRY WORLD RANK WORLD RANK 25 CHANGE 2018 2017 CHANGE 2018 2017 20 Bulgaria 26 28 2 18 19 1 15 10 Turkey 149 146 – 3 36 36 5 Romania 24 25 1 17 17 – 0 2012 2013 2014 2015 2016 2017

Corruption Perceptions Index 180 countries participate in the rating, the worst rating is 10 (Somalia), the best 90 (New Zealand, Denmark)

CEE SME Banking Report 2018 17 SME Banking Club Country Overview - Bulgaria Banking Industry

TOP10 BANKS - RANKED BY TOTAL ASSETS* TOP10 FOREIGN BANKS - RANKED BY TOTAL ASSETS*

1 UniCredit Bulbank 9 763.7 19.5% 1 UniCredit Bulbank 9 763.7 19.5% ТОР-10 ТОР-10 2 DSK Bank 5 952.9 11.9% 2 DSK Bank 6 212.3 12.4% 3 First Investment Bank 4 526.2 9.1% 3 Eurobank Bulgaria 3 794.5 7.6% 4 Eurobank Bulgaria 3 493.0 7.0% 4 United Bulgarian Bank 3 757.8 7.5% 5 United Bulgarian Bank 3 486.1 7.0% 5 Raiffeisenbank Bulgaria 3 577.7 7.2% 78.2% 36 110.3 39 103.5 72.2% 6 Raiffeisenbank (Bulgaria) 3 233.2 6.5% 6 Societe General Expressbank 3 287.8 6.6% 50 008.4 7 Societe General Expressbank 3 034.4 6.1% 50 008.4 7 Cibank 1 850.8 3.7% 8 Central Cooperative Bank 2 541.1 5.1% 8 Piraeus Bank Bulgaria 1 552.7 3.1%

9 Cibank 1 586.2 3.2% BANK ASSETS TOTAL 9 Allianz Bank Bulgaria 1 308.8 2.6% TOTAL BANK ASSETS TOTAL 10 Piraeus Bank Bulgaria 1 486.7 3.0% 10 ProCredit Bank (Bulgaria) 1 004.2 2.0%

Total Assets, EUR Million Share of Total Assets, %

WEIGHTED AVERAGE INTEREST RATES FOR BANKS' LOANS IN 2017 (LCU) END OF MONTH EXCHANGE RATES IN 2017

4.58 4.53 4.48 1.96 1.96 1.96 1.96 1.96 1.96 1.96 1.96 1.96 1.96 1.96 1.96 4.44 4.40 4.38 4.32 Jan Feb 4.23 Mar 4.17 Apr May 4.08 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jun Jul Aug 3.99 3.97 Sep Oct Nov Dec

state- TOP STATE-OWNED BANKS - RANKED BY TOTAL ASSETS* owned LOANS GRANTED BY CREDIT INSTITUTIONS Other 2.5% 0.3 Bulgarian Development Bank 1 263.5 2.5% Professional, scientiﬁc and technical activities 1 263.5 Transport and storage 2 2 Electricity, gas, steam and air conditioning supply 3 3 Households and NPISHs Accommodation and food service activities 4

50 008.4 Agriculture, 5 forestry and ﬁshing 6 39 TOTAL BANK ASSETS TOTAL Real estate activities % Construction 14 Total Assets, EUR Million Share of Total Assets, % Manufacturing 18 Trade; repair of motor

*Ranked by Total Assets, as of December 31, 2017 vehicles and motorcycles

CEE SME Banking Report 2018 18 SME Banking Club Country Overview - Bulgaria SME Banking

40.9% 41.0% Share of SME Loans Share of active banks COUNTRY BUSINESS LOANS PORTFOLIO, SME INCLUDED, MLN.EUR in SME

17 964 15 903 15 653 15 713 15 985

BUSINESS LOANS, MLN. EUR TOTAL NUMBER OF BANKS

15 985 6 530 27 13 2013 2014 2015 2016 2017 Total SME

WEIGHTED AVERAGE INTEREST RATES OF THE BANKING SECTOR (NEW BUSINESS, NON-FINANCIAL CORPORATIONS)

4.6 4.5 4.4 4.6 4.2 4.5 4.0 4.3 Q I 4.1 2016 Q II 3.9 2016 Q III 2016 Q IV 2016 end of period

% BGN % EUR

CEE SME Banking Report 2018 19 SME Banking Club Country Overview - Bulgaria TOP Banks

SME PORTFOLIO, MLN.EUR BRANCHES

2500 200 10 73 96 155 159 187 134 185 190 168 210.1 133.5 291.5 447.4 704.2 687.9 454.3 262.9 2000 900.5 2 432.1 150 1500 100 1000

500 50

0 0 1 2 3 4 5 6 7 8 9 10 2 7 8 1 4 6 5 9 10 3

1 – UniCredit Bulbank* 6 – First Investment Bank 2 – United Bulgarian Bank 7 – Postbank (Eurobank) 3 – Procredit Bank (Bulgaria) 8 – Cibank 4 – Societe Generale Expressbank 9 – Allianz Bank Bulgaria 5 – Raiffeisenbank (Bulgaria) 10 – Piraeus Bank Bulgaria

100 Raiffeisenbank (Bulgaria)

SME PORTFOLIO, MLN.EUR

50 UniCredit Bulbank Procredit Bank United Bulgarian Bank (Bulgaria) First Investment Allianz Bank Bank Bulgaria Postbank (Eurobank)

0 Piraeus Bank Cibank Bulgaria Societe Generale NUMBER OF SME CLIENTS, THOUSANDS Expressbank 0 50 100 150 200 NUMBER OF BRANCHES * — 2016 CEE SME Banking Report 2018 20 SME Banking Club Country Overview - Bulgaria Summary

SME PORTFOLIO, MLN.EUR BRANCHES

2500 200 10 73 96 155 159 187 134 185 190 168 210.1 133.5 291.5 447.4 704.2 687.9 454.3 262.9 2000 900.5 2 432.1 150 1500 100 Banking assets increased to BGN 97.8 billion (EUR 50 billion) in the course Loan portfolio growth, the higher quality of the lending portfolio, lower 1000 of one year. The market share of foreign subsidiary banks rose from 72.9 impairments and declining interest rates influenced the financial result of 500 50 percent to 74.6 percent. The share of domestic bank assets rose slightly to the sector. As a result, at the end of December 2017, the net profit of the 25.4 percent. banking system was BGN 1.17 billion (EUR 598.2 million) compared to BGN 0 0 1 2 3 4 5 6 7 8 9 10 2 7 8 1 4 6 5 9 10 3 1.262 billion (EUR 645.3 million) in 2016. As of December 31, 2017, the value of Return on Assets (ROA) decreased to 1.2% from 1.42%, recorded as of 1 – UniCredit Bulbank* 6 – First Investment Bank December 31, 2016, and the Return on Equity (ROE) – to 9.32% from 10.57%. 2 – United Bulgarian Bank 7 – Postbank (Eurobank) 3 – Procredit Bank (Bulgaria) 8 – Cibank Efforts undertaken by banks to optimize their portfolios led to a gradual 4 – Societe Generale Expressbank 9 – Allianz Bank Bulgaria decline in the share and amount of non-performing loans. As of December 5 – Raiffeisenbank (Bulgaria) 10 – Piraeus Bank Bulgaria 31, 2017, the amount of non-performing loans (excluding central banks and credit institutions) declined to BGN 5.65 billion (EUR 2.89 billion) in Around 41 percent of banks worked with SMEs, but there was no publicly absolute terms, or to 10.07%, as the tendency for decline continued. available information about the percentage of business loans that the 100 Raiffeisenbank (Bulgaria) SME sector accounted for. According to the 2017 SBA Fact Sheet by the European Commission on access to finance, Bulgaria is on par with the EU SME PORTFOLIO, average. Compared to the previous year, some progress has been made. MLN.EUR Interest rates on loans continued their decline in 2017. At the end of At the same time, it is still difficult to obtain public guarantees, and risk December 2017, the annual percentage rate, which includes an interest rate capital remains limited. Bulgarian SMEs are lagging behind in their access to 50 component as well as that of all other fees and commissions related to the alternative financings, such as crowdfunding. UniCredit Bulbank loan, dropped to 4.01% for housing loans in BGN and to 4.44% for those Procredit Bank United Bulgarian Bank (Bulgaria) First Investment in EUR. Average interest rates on new business loans for non-financial Allianz Bank Bank Bulgaria Postbank (Eurobank) corporations fell to 3.71% for loans in BGN and 3.38% for loans in EUR. The decrease was from 3.90% and 4.16%, respectively. It could be concluded 0 Piraeus Bank Cibank that lower interest rates increased lending activity. In combination with the Bulgaria favorable development of the Bulgarian economy, the lower interest rates Societe Generale NUMBER OF SME CLIENTS, THOUSANDS Expressbank provided additional grounds for accelerating lending activity. 0 50 100 150 200 NUMBER OF BRANCHES * — 2016

CEE SME Banking Report 2018 21 SME Banking Club COUNTRY OVERVIEW SERBIA

CEE SME BANKING REPORT 2018 Country Overview - Serbia Country Overview

72,87 Doing Business Distance to Frontier (DTF)

73,13 + 0,26 Registering Property

42.6 SME density (per 1000 people) 37.5 102.5% 1.9% 6.0% 51.0% 55.0% 67.1% 7.1 88.4 Inflation, GDP growth 5 322.8 GDP deflator (annual %) (annual %)

GDP by Production approach

Agriculture 658.1 Industry 671.2 Services 482.6 AGRICULTURE, FORESTRY AND FISHING 439.9 INDUSTRY 2 717.5 SERVICES ETC. 2 579.0 2 460.1 2 129.2

2 138.9 Trade Industry

COUNTRY OVERVIEW Finance 1 876.3 Q ІV Q ІV Real estate Real Construction Q ІII 1 615.7 Q ІII Q IІ Other services Q IІ 2 095.4 Q I 1 721.0 Q I 1 578.8

825.3 SERBIA 2 063.4 1 603.3 4 290.3 4 581.6 4 803.6 5 057.1 1 512.5 and communication Information 785.7 456.1 578.6 283.7 441.7 728.3 483.6 276.3 1 851.2 1 380.4 431.6 305.9 1 515.8 396.6 401.2 291.4 701.5 CEE SME BANKING REPORT 2018 278.0

Q I Q II Q III Q IV Gross domestic product (current prices, mln. EUR) 8 302.2 9 185.7 9 740.0 10 246.1

CEE SME Banking Report 2018 23 SME Banking Club Country Overview - Serbia Business Environment

1. MEASURING BUSINESS REGULATIONS 92 DB 2018 Ranking .6 The rating is measured on a scale of 190 to 1, (DOING BUSINESS RANK) where 190 represents the worst result, and 1 is the best. Distance to Frontier Ranking 2018 .1 The remoteness of each country from the "frontier" is measured 73 on a scale of 0 to 100, where 0 represents the worst result, and 100 represents the "frontier". 0.5 6 8 43 Overall 2 .4 Starting a Business 32 .4 1 48 Resolving Insolvency 6 Dealing with Construction Permits 10 60 Enforcing Contracts

6 Getting Electricity 96

. .

23 Trading across Borders 6 0 9 Registering Property 57 82 Paying Taxes

Getting Credit 55

76 Protecting Minority Investors 7 2

. 6

7 .

6 5 2. CORRUPTION PERCEPTIONS

COUNTRY RANK 2017:

5 . 0 77 FROM 180 (THE BEST 1, THE WORST 180)

45 42 41 42 41 3. GLOBAL PEACE INDEX 39 40 VISION OF HUMANITY RANK 40 35 30 WORLD RANK EUROPE RANK EUROPE RANK EUROPE RANK COUNTRY WORLD RANK WORLD RANK 25 CHANGE 2018 2017 CHANGE 2018 2017 20 Serbia 54 56 2 27 28 1 15 10 Hungary 17 15 2 12 10 2 5 Bulgaria 26 28 2 18 19 1 0 2012 2013 2014 2015 2016 2017

Corruption Perceptions Index 180 countries participate in the rating, the worst rating is 10 (Somalia), the best 90 (New Zealand, Denmark)

CEE SME Banking Report 2018 24 SME Banking Club Country Overview - Serbia Banking Industry

TOP10 BANKS - RANKED BY TOTAL ASSETS* TOP10 FOREIGN BANKS - RANKED BY TOTAL ASSETS*

1 Intesa Bank Serbia 4 767.9 16.8% 1 Intesa Bank Serbia 4 767.9 16.8% ТОР-10 ТОР-10 2 Komercijalna banka 3 116.2 11.0% 2 Unicredit Bank Serbia 3 061.9 10.8% 3 Unicredit Bank Serbia 3 061.9 10.8% 3 Societe Generale Bank Serbia 2 430.8 8.5% 4 Societe Generale Bank Serbia 2 430.8 8.5% 4 Raiffeisen Bank Serbia 2 233.6 7.9% 66.2% 5 Raiffeisen Bank Serbia 2 233.6 7.9% 78.4% 5 Erste Bank Serbia 1 366.7 4.8% 18 824.1

6 Agroindustrijska komercijalna banka 1 767.2 6.2% 22 303.4 6 Eurobank Serbia 1 337.4 4.7% 28 440.2 7 Erste Bank Serbia 1 366.7 4.8% 28 440.2 7 Vojvođanska banka (OTP Group) 1 035.9 3.6% 8 Eurobank Serbia 1 337.4 4.7% 8 Sberbank Serbia 979.4 3.4% 9 1 185.8 4.2% Banka Poštanska štedionica BANK ASSETS TOTAL 9 ProCredit Serbia 816.1 2.9% TOTAL BANK ASSETS TOTAL 10 Vojvođanska banka (OTP Group) 1 035.9 3.6% 10 Addiko Bank Serbia 794.4 2.8%

Total Assets, EUR Million Share of Total Assets, %

WEIGHTED AVERAGE INTEREST RATES FOR BANKS' LOANS IN 2017 (LCU) END OF MONTH EXCHANGE RATES IN 2017

6.6 6.1 6.3 5.9 5.8 5.8 5.9 Nov 5.5 5.7 5.7 Aug 5.4 123.96 123.91 123.97 123.17 Jan Mar Jun Sep 122.66 Apr May Jul Jan Feb Mar 120.85 Feb Oct 4.7 Apr May 120.40 Jun 119.18 119.37 119.31 119.41 118.47 Dec Jul Aug Sep Oct Nov Dec

state- TOP STATE-OWNED BANKS - RANKED BY TOTAL ASSETS* owned LOANS GRANTED BY CREDIT INSTITUTIONS 16.1% Other 3 116.2 11.0% Komercijalna banka 4 585.3 Education 0.5 7 1 185.8 4.2% Banka Poštanska štedionica Distribution of electricity 2 119.0 0.4% Srpska banka Agriculture 6 JUBMES banka 98.8 0.3% Mining Construction 8 29

MTS banka 65.5 0.2% 28 440.2 Real estate activity % Transport 8 Total Assets, EUR Million BANK ASSETS TOTAL Share of Total Assets, % 12 28 Trade

*Ranked by Total Assets, as of December 31, 2017

CEE SME Banking Report 2018 25 SME Banking Club Country Overview - Serbia SME Banking

31.7% 52% Share of SME Loans Share of active banks COUNTRY SME LOANS PORTFOLIO, MLN.EUR in SME

5 529 4 170 4 698 3 887 3 626

BUSINESS LOANS, MLN. EUR TOTAL NUMBER OF BANKS

17 500 5 500 29 15 2012 2013 2014 2015 2016 Total SME

WEIGHTED AVERAGE INTEREST RATES OF THE BANKING SECTOR (NEW BUSINESS, NON-FINANCIAL CORPORATIONS)

5.9 5.8 5.9 5.4 4.8

3.1 3.0 3.0 3.0 2.8

Q I Q II Q III Q IV end of period 2016 2016 2016 2016

% RSD % EUR

CEE SME Banking Report 2018 26 SME Banking Club Country Overview - Serbia TOP Banks

31.7% 52% SME PORTFOLIO, MLN.EUR NUMBER OF SME CLIENTS, THOUSANDS BRANCHES Share of SME Loans Share of active banks COUNTRY SME LOANS PORTFOLIO, MLN.EUR in SME

800 120 120 102

200 216 158 105 87 85 62 62 55 33 25 884.4 587.0 468.8 377.6 217.7 158.2 142.3 125.7 90.8 65.6 600 5 529 80 150 4 698 4 170 400 3 887 3 626 100 40 200 50

BUSINESS LOANS, MLN. EUR TOTAL NUMBER OF BANKS 0 0 0 1 2 3 4 5 6 7 8 9 10 3 1 5 1 6 7 9 4 10 8 3 2 17 500 5 500 29 15 2012 2013 2014 2015 2016 1 — Intesa Bank Serbia 6 — Vojvođanska banka (OTP Group) Total SME 2 — ProCredit Bank Serbia 7 — Raiffeisen Bank Serbia 3 — Sberbank Serbia 8 — OTP Banka Serbia 4 — Erste Bank Serbia 9 — Eurobank Serbia 5 — Komercijalna banka 10 — Agroindustrijska komercijalna banka Sberbank Serbia

Intesa Bank Serbia WEIGHTED AVERAGE INTEREST RATES OF THE BANKING SECTOR (NEW BUSINESS, NON-FINANCIAL CORPORATIONS)

5.9 5.8 5.9 5.4 100 SME PORTFOLIO, MLN.EUR 4.8

ProCredit Bank 3.1 3.0 3.0 3.0 2.8 Erste Bank Komercijalna banka OTP banka Srbija Vojvođanska banka Q I Q II Q III Q IV end of period Eurobank Serbia 2016 2016 2016 2016 0 0 50 Agroindustrijska 100 150 200 250 komercijalna banka Raiffeisen Banka NUMBER OF SME CLIENTS, THOUSANDS

NUMBER OF BRANCHES % RSD % EUR

CEE SME Banking Report 2018 27 SME Banking Club Country Overview - Serbia Summary

At the end of December 2017, the Serbian banking sector included The balance of total assets in the Serbian banking sector at the end 29 banks with an operating license for a total of 1,627 business units. of December 2017 equaled RSD 3,369.4 billion (EUR 28.4 billion), an There were eight domestic commercial banks (six state-owned and increase of RSD 127.9 billion (EUR 1.08 billion). two privately owned), as well as 21 foreign-owned banks.

Despite falling interest rates, ROE increased to 10.6 percent in the Serbian banking sector stability has been preserved and further first three quarters of 2017, compared to 3.4 percent during the same reinforced. Encouraged by the NBS measures, the share of NPLs in period in 2016. Improved profitability was mainly driven by declines total loans plummeted to 8.8% at the end of April 2018 which is the in loan loss provisions, economic growth, a stable FX rate, as well as lowest level since 2008 when this indicator of portfolio quality was improving NPL ratios. introduced.

Around 52 percent of banks worked with SMEs and loans to SMEs In 2017, the results of the Serbian banking sector at the end of Q3 accounted for 31.7 percent of business loans. Serbia’s performance 2017 indicate that bank profitability has continued to improve. As of in providing access to financing for SMEs was below average. In September 30, 2017, the banking sector’s pre-tax net result was RSD absolute terms, Serbia has recorded an overall deterioration in this 53.5 billion, up by 63.1%% compared to the same period last year. area since 2008.

CEE SME Banking Report 2018 28 SME Banking Club COUNTRY OVERVIEW ROMANIA

CEE SME BANKING REPORT 2018 Country Overview - ROMANIA Economics

72.70 Doing Business Distance to Frontier (DTF)

72.87 + 0.17 Registering Property

23.7 SME density (per 1000 people) 184.2 116.4% 6.9% 4.4% 42.3% 52.8% 62.8% 19.6 238.4 Inflation, GDP growth 9 596.1 GDP deflator (annual %) (annual %)

GDP by Production approach 1 439.9 Agriculture Industry 4 931.4 Services AGRICULTURE, FORESTRY AND FISHING 19 464.6 INDUSTRY 1 041.8 SERVICES ETC. 14 958.0 639.5 11 877.4 Trade

Industry 13 762.6 Q ІV Finance 11 890.2 Q ІV Q ІII 9 065.3 estate Real Construction 10 106.1 Q IІ Other services Q ІII Q I Q IІ 10 606.9 12 385.0 Q I 8 267.4

5 702.0 Information and communication Information 9 607.9 10 415.5 21 854.9 25 477.6 26 232.8 29 906.1 8 845.1 3 856.6 2 642.6 3 720.8 2 573.1 2 363.8 1 410.6 1 273.9 3 446.2 8 294.1 7 977.4 1 461.9 7 108.4 2 350.8 1 227.7 1 088.0 2 100.6 1 236.5 3 115.2

Q I Q II Q III Q IV

Gross domestic product (current prices, mln. EUR) 35 256.3 42 369.8 51 018.5 55 558.8

CEE SME Banking Report 2018 30 SME Banking Club Country Overview - ROMANIA Business Environment

1. MEASURING BUSINESS REGULATIONS 8 DB 2018 Ranking 9.7 The rating is measured on a scale of 190 to 1, (DOING BUSINESS RANK) where 190 represents the worst result, and 1 is the best. Distance to Frontier Ranking 2018 9 The remoteness of each country from the "frontier" is measured 72. on a scale of 0 to 100, where 0 represents the worst result, and 100 represents the "frontier". 59.8 45 Overall

.3 2 5 Starting a Business 64 7 8 51 Resolving Insolvency .1 Dealing with Construction Permits 150 17 Enforcing Contracts

5 0

3 Getting Electricity 147

. 3

1 Trading across Borders 0 1 Registering Property 45 42 Paying Taxes

Getting Credit 20

57 Protecting Minority Investors 4 4

. 7

80.9

0 . 2. CORRUPTION PERCEPTIONS 0

6 COUNTRY RANK 2017:

59 FROM 180

0 . 0 (THE BEST 1, THE WORST 180) 48 48 50 43 46 3. GLOBAL PEACE INDEX 45 44 43 VISION OF HUMANITY RANK 40 35 30 COUNTRY WORLD RANK WORLD RANK WORLD RANK EUROPE RANK EUROPE RANK EUROPE RANK 25 2018 2017 CHANGE 2018 2017 CHANGE 20 Romania 24 25 1 17 17 – 15 10 Serbia 54 56 2 27 28 1 5 Hungary 17 15 2 12 10 2 0 2012 2013 2014 2015 2016 2017

Corruption Perceptions Index 180 countries participate in the rating, the worst rating is 10 (Somalia), the best 90 (New Zealand, Denmark)

CEE SME Banking Report 2018 31 SME Banking Club Country Overview - ROMANIA Banking Industry

TOP10 BANKS - RANKED BY TOTAL ASSETS* TOP10 FOREIGN BANKS - RANKED BY TOTAL ASSETS*

1 Banca Comercială Română (BCR) 14 5362 14.7% 1 Banca Comercială Română (BCR) 14 536.2 14.7% ТОР-10 ТОР-10 2 Banca Transilvania 12 726.6 12.9% 2 BRD 11 479.5 11.6% 3 BRD (SocGen) 11 479.5 11.6% 3 UniCredit 9 335.2 9.5% 4 UniCredit 9 335.2 9.5% 4 Raiffeisen 7 912.9 8.0% 62.6% 5 Raiffeisen 7 912.9 8.0% 78.9% 5 ING Bank 7 222.8 7.3% 61 733.8 77 847.6 6 ING Bank 7 222.8 7.3% 6 Alpha Bank 3 354.9 3.4% 98 689.5 7 CEC Bank 6 792.6 6.9% 7 Bancpost 2 344.1 2.4% 98 689.5 8 Alpha Bank 3 354.9 3.4% 8 Garanti bank 2 142.8 2.2%

9 Bancpost 2 344.1 2.4% BANK ASSETS TOTAL 9 OTP Bank 1 963.9 2.0% TOTAL BANK ASSETS TOTAL 10 Garanti bank 2 142.8 2.2% 10 City Bank 1 441.5 1.5%

Total Assets, EUR Million Share of Total Assets, %

WEIGHTED AVERAGE INTEREST RATES FOR BANKS' LOANS IN 2017 (LCU) END OF MONTH EXCHANGE RATES IN 2017

4.8 4.6 4.64 4.66 4.4 Dec 4.59 4.60 4.60 Nov 4,50 4.52 4.55 4.53 4.57 4.55 4.56 4.1 4.1 4.0 Aug Sep Oct Nov Dec 3.8 4.0 4.0 Oct May Jun Jul 3.7 3.7 3.8 Jan Feb Mar Apr Jan Mar Apr May Feb Sep Aug Jun Jul LOANS GRANTED BY CREDIT INSTITUTIONS state- TOP STATE-OWNED BANKS - RANKED BY TOTAL ASSETS* owned Others 8.1% Finance 5 CEC Bank 6 792.6 6.90% 3 7 984.6 Agriculture 1 192.1 1.20% 4 Individuals EximBank Construction Industry 6

98 689.5 17 % 41

Total Assets, EUR Million BANK ASSETS TOTAL Share of Total Assets, % 25 Loans granted by *Ranked by Total Assets, as of December 31, 2017 credit institutions

CEE SME Banking Report 2018 32 SME Banking Club Country Overview - ROMANIA SME Banking

TOP10 BANKS - RANKED BY TOTAL ASSETS* TOP10 FOREIGN BANKS - RANKED BY TOTAL ASSETS* 16.5% 40.0% Share of SME Loans Share of active banks COUNTRY BUSINESS LOANS PORTFOLIO, SME INCLUDED, MLN.EUR 1 Banca Comercială Română (BCR) 14 5362 14.7% 1 Banca Comercială Română (BCR) 14 536.2 14.7% in SME ТОР-10 ТОР-10 2 Banca Transilvania 12 726.6 12.9% 2 BRD 11 479.5 11.6% 3 BRD (SocGen) 11 479.5 11.6% 3 UniCredit 9 335.2 9.5% 4 UniCredit 9 335.2 9.5% 4 Raiffeisen 7 912.9 8.0% 62.6% 5 Raiffeisen 7 912.9 8.0% 78.9% 5 ING Bank 7 222.8 7.3% 61 733.8 40 496 42 311 43 040 77 847.6 35 674 6 ING Bank 7 222.8 7.3% 6 Alpha Bank 3 354.9 3.4% 31 068 98 689.5 7 CEC Bank 6 792.6 6.9% 7 Bancpost 2 344.1 2.4% 98 689.5 8 Alpha Bank 3 354.9 3.4% 8 Garanti bank 2 142.8 2.2%

9 Bancpost 2 344.1 2.4% BANK ASSETS TOTAL 9 OTP Bank 1 963.9 2.0% BUSINESS LOANS, MLN. EUR TOTAL NUMBER OF BANKS TOTAL BANK ASSETS TOTAL 10 Garanti bank 2 142.8 2.2% 10 City Bank 1 441.5 1.5% 43 040 7 109 35 14 2013 2014 2015 2016 2017 Total Assets, EUR Million Share of Total Assets, % Total SME

WEIGHTED AVERAGE INTEREST RATES FOR BANKS' LOANS IN 2017 (LCU) END OF MONTH EXCHANGE RATES IN 2017

4.8 4.6 4.64 4.66 4.4 Dec 4.59 4.60 4.60 Nov 4,50 4.52 4.55 4.53 4.57 4.55 4.56 4.1 4.1 4.0 Aug Sep Oct Nov Dec 3.8 4.0 4.0 Oct May Jun Jul WEIGHTED AVERAGE INTEREST RATES OF THE BANKING SECTOR (NEW BUSINESS, NON-FINANCIAL CORPORATIONS) 3.7 3.7 3.8 Jan Feb Mar Apr Jan Mar Apr May Feb Sep Aug Jun Jul 5.0 LOANS GRANTED BY CREDIT INSTITUTIONS TOP STATE-OWNED BANKS - RANKED BY TOTAL ASSETS* state- owned 4.0 4.0 4.0 Others 3.7 8.1% Finance 5 CEC Bank 6 792.6 6.90% 3 7 984.6 Agriculture 3.1 1 192.1 1.20% 4 Individuals 3.1 EximBank Construction 2.8 2.6 Industry 6 Q I Q II 2.4 2016 2016 Q III

98 689.5 41 17 % 2016 Q IV end of period 2016 Total Assets, EUR Million BANK ASSETS TOTAL Share of Total Assets, % 25 Loans granted by % RON *Ranked by Total Assets, as of December 31, 2017 credit institutions % EUR

CEE SME Banking Report 2018 33 SME Banking Club Country Overview - ROMANIA TOP Banks

SME PORTFOLIO, MLN.EUR NUMBER OF SME CLIENTS, THOUSANDS BRANCHES

1200 2000 200 248 133 6 1 022 760 529 529 454 156 149 130 21 7

2 133.5 1 721.3 922.8 665.3 663.1 405.5 229.8 221.1 166.7 109.4 900 1500 150

1000 100 600

50 500 300

0 0 0 1 2 3 4 5 6 7 8 9 10 3 4 8 2 4 3 5 6 1 9 10 7 8

1 — UniCredit 6 — Raiffeisen Bank Romania 2 — CEC Bank 7 — EximBank 3 — Banca Transilvania 8 — ProCredit Bank Romania 4 — BRD 9 — Bancpost (Eurobank)* 5 — Banca Comercială Română (BCR, Erste) 10 — Alpha Bank Romania

Banca Transilvania

200 SME PORTFOLIO, MLN.EUR BRD

100

UniCredit CEC Bank ProCredit Banca Comercială Română (BCR) Raiffeisen EximBank Bancpost

0 NUMBER OF SME CLIENTS, THOUSANDS 0 200 400 600 800 1000 Alpha Bank Romania NUMBER OF BRANCHES

* — 2016 CEE SME Banking Report 2018 34 SME Banking Club Country Overview - ROMANIA Summary

SME PORTFOLIO, MLN.EUR NUMBER OF SME CLIENTS, THOUSANDS BRANCHES

1200 2000 200 A total of 35 banks operated in Romania at the end of 2017, 7 of which were Banks in Romania ended the year with a return on equity (ROE) of 12.68%, 248 133 6 1 022 760 529 529 454 156 149 130 21 7

2 133.5 1 721.3 922.8 665.3 663.1 405.5 229.8 221.1 166.7 109.4 900 1500 150 subsidiaries of foreign groups and 2 fully or majority state-owned capital. up by 1.26 percentage points versus 2016, according to preliminary data released by Romania’s National Bank (BNR). The local banks recorded a 1000 100 600 better ROE only in 2008 when the indicator reached 17.04%. The return on 50 assets (ROA) reached 1.32% at the end of 2017, up from 1.08% at the end of 500 300 The total net assets of local banks went up by 8.6% in 2017, reaching RON 2016. 0 0 0 427 billion (EUR 92 billion). The overall non-performing loans ratio of 1 2 3 4 5 6 7 8 9 10 3 4 8 2 4 3 5 6 1 9 10 7 8 local banks dropped to 6.4% at the end of December 2017, from 9.62% in 1 — UniCredit 6 — Raiffeisen Bank Romania December 2016. The loans to deposits ratio also went down from 79% in 2 — CEC Bank 7 — EximBank 3 — Banca Transilvania 8 — ProCredit Bank Romania 2016 to 74.7% in 2017, as deposits increased faster than loans. Around 40 percent of banks worked with SMEs actively. There was no 4 — BRD 9 — Bancpost (Eurobank)* publicly available information about the percentage of business loans that 5 — Banca Comercială Română (BCR, Erste) 10 — Alpha Bank Romania the SME sector accounted for. Romania’s overall performance concerning access to finance lies within the EU average, the same as last year. Banca Transilvania Romania’s banking system recorded an overall net profit of RON 5.36 billion SME PORTFOLIO, (EUR 1.17 billion) in 2017, up by 31% compared to the previous year. This was 200 BRD MLN.EUR the best nominal result ever for the local banks.

100

UniCredit CEC Bank ProCredit Banca Comercială Română (BCR) Raiffeisen EximBank Bancpost

0 NUMBER OF SME CLIENTS, THOUSANDS 0 200 400 600 800 1000 Alpha Bank Romania NUMBER OF BRANCHES

* — 2016 CEE SME Banking Report 2018 35 SME Banking Club COUNTRY OVERVIEW HUNGARY

CEE SME BANKING REPORT 2018 Country Overview - HUNGARY Economics

72.13 Doing Business Distance to Frontier (DTF)

72.39 +0.26 Enforcing Contracts

56.0 SME density (per 1000 people) 123.1 107.8% 4.0% 3.3% 90.4% 52.9% 80.5% 9.8 93.0 Inflation, GDP growth 12 600.0 GDP deflator (annual %) (annual %)

GDP by Production approach 1 155.4 Agriculture Industry 1 318.4 Services 920.7 AGRICULTURE, FORESTRY AND FISHING 679.2 9 214.1 7 954.8 SERVICES ETC. INDUSTRY 8 293.8 7 090.7 Trade

7 380.9 Finance 8 419.6 Industry

Q ІV estate Real Q ІV Construction Q ІII Other services Q ІII Q IІ Q IІ 6 560.9 7 843.0 Q I Q I COUNTRY OVERVIEW 5 740.2 7 146.9 7 779.3 15 179.5 16 528.9 17 234.1 18 588.6 5 107.3 and communication Information 2 156.1 4 564.0 1 433.3 1 833.1 839.4 2 120.9 1 309.3 853.6 6 443.1 1 393.9 2 096.3 7 320.1 1 146.8 3 844.8 1 224.5 864.9 HUNGARY 647.6 1 125.6 863.7 2 025.3

CEE SME BANKING REPORT 2018 Q I Q II Q III Q IV Gross domestic product (current prices, mln. EUR) 27 124.6 30 478.0 31 284.0 34 229.7

CEE SME Banking Report 2018 37 SME Banking Club Country Overview - HUNGARY Business Environment

1. MEASURING BUSINESS REGULATIONS 87 DB 2018 Ranking .6 The rating is measured on a scale of 190 to 1, (DOING BUSINESS RANK) where 190 represents the worst result, and 1 is the best. Distance to Frontier Ranking 2018 2.4 The remoteness of each country from the "frontier" is measured 7 on a scale of 0 to 100, where 0 represents the worst result, and 100 represents the "frontier".

48 Overall 54.8 6 8 7 . .9 3 Starting a Business 79 7 62 Resolving Insolvency Dealing with Construction Permits 90 13 Enforcing Contracts

. 6

3 Getting Electricity 110

0 .

1 Trading across Borders 3 1 Registering Property 29 93 Paying Taxes

Getting Credit 29

5 .

108 Protecting Minority Investors 7

0 . . 1 0

5 2. CORRUPTION PERCEPTIONS

COUNTRY RANK 2017:

5 . 0 66 FROM 180 (THE BEST 1, THE WORST 180) 55 54 54 55 51 3. GLOBAL PEACE INDEX 50 48 VISION OF HUMANITY RANK 45 45 40 COUNTRY WORLD RANK WORLD RANK WORLD RANK EUROPE RANK EUROPE RANK EUROPE RANK 35 2018 2017 CHANGE 2018 2017 CHANGE 30 25 Hungary 17 15 2 12 10 2 20 Greece 79 73 6 32 32 – 15 10 Serbia 54 56 2 27 28 1 5 0 2012 2013 2014 2015 2016 2017

Corruption Perceptions Index 180 countries participate in the rating, the worst rating is 10 (Somalia), the best 90 (New Zealand, Denmark)

CEE SME Banking Report 2018 38 SME Banking Club Country Overview - HUNGARY Banking Industry

TOP10 BANKS - RANKED BY TOTAL ASSETS* TOP10 FOREIGN BANKS - RANKED BY TOTAL ASSETS*

1 OTP Bank 24 840.8 21.2% 1 K&H Bank 9 806.3 8.4% ТОР-10 ТОР-10 2 K&H Bank 9 806.3 8.4% 2 UniCredit Bank Hungary 8 856.6 7.6% 3 UniCredit Bank Hungary 8 856.6 7.6% 3 Erste Bank Hungary 7 025.9 6.0% 36.3% 4 Erste Bank Hungary 7 025.9 6.0% 64.3% 4 Raiffeisen Bank Hungary** 6 430.4 5.5% 42 515.4

5 MKB Bank 6 650.9 5.7% 75 372.8 5 CIB Bank Hungary 5 427.3 4.6% 6 Raiffeisen Bank Hungary** 6 430.4 5.5% 6 FHB Bank 1 968.7 1.7% 117 218.2 7 CIB Bank Hungary 5 427.3 4.6% 117 218.2 7 Sberbank Hungary 1 144.3 1.0% 8 Budapest Bank 3 221.8 2.7% 8 Commerzbank** 776.1 0.7% 1 968.7 1.7% 9 682.2 0.6% 9 FHB Bank BANK ASSETS TOTAL KDB Bank Európa TOTAL BANK ASSETS TOTAL 10 Sberbank Hungary 1 144.3 1.0% 10 MagNet** 397.9 0.3%

Total Assets, EUR Million Share of Total Assets, %

WEIGHTED AVERAGE INTEREST RATES FOR BANKS' LOANS IN 2017 (LCU) END OF MONTH EXCHANGE RATES IN 2017

2.4 2.4 2.3 2.3 2.3 2.3 2.3 312.68 2.2 2.2 Aug Sep 311.00 311.42 2.2 2.2 308.70 311.55 307.78 308.87 311.23 310.14 2.1 Apr May Jun Jul Oct 307.71 304.82 306.14 Jan Nov Mar Nov Dec Jan Apr Sep Oct Feb Feb Mar May Jun Dec Jul Aug

state- TOP STATE-OWNED BANKS - RANKED BY TOTAL ASSETS* owned LOANS GRANTED BY CREDIT INSTITUTIONS

Other activities 3 Information and communication 1 MFB 4 218.6 3.6% 6.1% 2

7 202.8 Electricity, gas and steam supply, air-conditioning EXIM Bank 2 984.2 2.5% Accomodation and food service activities 3 Financial and insurance activities 4 Manufacturing Agricultural Construction 5 23

117 218.2 Professional, scienti c and technical activities Transport 5 Trade

TOTAL BANK ASSETS TOTAL % Total Assets, EUR Million 7 Share of Total Assets, % 20 8 *Ranked by Total Assets, as of December 31, 2017 ** December 31, 2016 18 Real estate activities

CEE SME Banking Report 2018 39 SME Banking Club Country Overview - HUNGARY SME Banking

58.9% 23% Share of SME Loans Share of active banks COUNTRY SME LOANS PORTFOLIO, MLN.EUR in SME

13 000 12 200 11 500 11 300 12 300

BUSINESS LOANS, MLN. EUR TOTAL NUMBER OF BANKS

20 800 12 300 35 8 2013 2014 2015 2016 2017

Total SME

WEIGHTED AVERAGE INTEREST RATES OF THE BANKING SECTOR (NEW BUSINESS, NON-FINANCIAL CORPORATIONS)

2.4 2.2 2.3 2.2 2.2

1.9 1.7 Q I 1.6 1.7 1.6 2016 Q II 2016 Q III Q IV end of period 2016 2016

% HUF % EUR

CEE SME Banking Report 2018 40 SME Banking Club Country Overview - HUNGARY TOP Banks

58.9% 23% SME PORTFOLIO, MLN.EUR NUMBER OF SME CLIENTS, THOUSANDS BRANCHES Share of SME Loans Share of active banks COUNTRY SME LOANS PORTFOLIO, MLN.EUR in SME 500 2000 50 49 45 44

40 400 442 362 207 148 100 71 69 54 1500 1 991.7 1 698.5 1 109.2 586.9 565.7 298.1 197.3 34.2 13 000 30 300 12 200 11 500 11 300 12 300 1000 20 200 500 10 100

BUSINESS LOANS, MLN. EUR TOTAL NUMBER OF BANKS 0 0 0 1 2 3 4 5 6 7 8 8 6 2 7 5 1 4 3 6 2 8 20 800 12 300 35 8 2013 2014 2015 2016 2017

Total SME 1 – K&H (KBC) Bank 5 – OTP Bank Hungary 2 – MKB Bank 6 – Raiffeisen Bank Hungary* 3 – Budapest Bank 7 – MFB Hungary* 4 – Erste Bank Hungary 8 – UniCredit Bank Hungary*

UniCredit Bank Hungary MKB Bank WEIGHTED AVERAGE INTEREST RATES OF THE BANKING SECTOR (NEW BUSINESS, NON-FINANCIAL CORPORATIONS) 50 Raiffeisen Bank Hungary

40 2.4 SME PORTFOLIO, 2.2 2.3 2.2 MLN.EUR 2.2 30

1.9 20 1.7 Q I 1.6 1.7 1.6 K&H (KBC) Bank 2016 10 Budapest Bank Q II Erste Bank Hungary OTP Bank Hungary 2016 Q III Q IV end of period MFB Hungary 2016 2016 NUMBER OF SME CLIENTS, THOUSANDS

0 0 100 200 300 400 % HUF % EUR NUMBER OF BRANCHES * — 2016

CEE SME Banking Report 2018 41 SME Banking Club Country Overview - HUNGARY Summary

There are 35 banks in Hungary, 23 of which hold significant foreign The annual average return on assets (ROA), calculated from the capital (foreign investors own 44.6 percent of total assets). Total unaudited after-tax profit using the accumulated method, was assets of the bank sector stood at HUF 36.354 trillion at the end of broadly unchanged at 1.8%. The average yearly return on equity last year, up 6% from January 1, 2017. Net assets were up 12% at HUF (ROE) fell slightly to 16.1% at the end of 2017. 4.188 trillion during the period.

According to the 2017 SBA Fact Sheet by the European Commission Corporate lending grew at a rate of 10 percent in annual terms in on access to finance, Hungary has experienced significant 2017, owing to continued, significant (12 percent) growth in SME improvements in this SBA principle since 2008, with the share of lending and expansion in the large company segment. The annual rejected SME loan applications dropping from 9.1 % in 2009 to 6.6 growth rate of the SME sector’s outstanding loans, including the % in 2016, and fewer businesses reporting a deterioration in the self-employed, was 11.8 percent in 2017, while outstanding loans in willingness of banks to provide loans. At the same time, the cost of the sector of micro, small and medium-sized enterprises in a narrow borrowing for small loans relative to large ones increased from 50.2 sense increased by 11.4 percent. % in 2015 to 65.3 % in 2016 and was the second highest in the EU.

The MNB also noted that the ratio of non-performing loans (NPLs) in Hungarian lender portfolios fell to 6.6% at the end of December, down from 10.0% on January 1. The ratio in the corporate portfolio dropped from 12.8% to 7.2%, while the ratio in the retail portfolio declined from 14.9% to 10.9%.

CEE SME Banking Report 2018 42 SME Banking Club CEE SME BANKING REPORT 2018 BANKING GROUPS Banking Groups Regional Structure

Countries of Eastern Europe where groups are present

Number of branches Rai eisen Bank International (RBI) BG PL RO RS TR CZ SI HR XK ME AL BA MK HU SK UniCredit RBI 134 237 454 87 132 75 48 78 98 71 190 KBC Group UniCredit 168 156 71 787 129 26 117 113 54 KBC Group 375 287 207 125 ProCredit ProCredit 10 7 25 28 7 6 11 Poland Intesa Sanpaolo Intesa Sanpaolo 30 158 1 52 201 47 54 76 230 Erste Erste 529 62 517 153 148 271 Czech Republic Number of customers (ths.) Slovakia Hungary BG PL RO RS TR CZ SI HR XK ME AL BA MK HU SK Slovenia Romania RBI 69 72 100 n/a n/a n/a 15 n/a n/a 45 111 Croatia Serbia UniCredit n/a n/a n/a n/a n/a n/a 1 100 10 49 Kosovo KBC Group Bosnia & Herzegovina 1 163 130 n/a n/a Bulgaria ProCredit n/a 6 n/a n/a 10 n/a 9 Albania FYRM Intesa Sanpaolo n/a 102 n/a n/a 60 n/a n/a 62 n/a Erste n/a n/a 177 n/a n/a 5 Turkey

SME Loan Portfolio, mln.EUR

BG PL RO RS TR CZ SI HR XK ME AL BA MK HU SK

RBI 454 1 551 405 142 248 n/a 74 92 116 298 336 UniCredit 2 432 2 133 21 6 156 4 717 152 1 388 264 34 KBC Group 1 163 3 375 1 992 281 ProCredit 704 221 587 508 195 137 259 Intesa Sanpaolo n/a 884 1 590 234 34 n/a n/a n/a 1 541 Erste 663 378 2 247 1 673 587 480

CEE SME Banking Report 2018 44 SME Banking Club Banking Groups Raiffeisen Bank International

Raiffeisen Bank International in CEE countries in 2017

Number of branches Number of customers (ths.) SME Loan Portfolio, mln.EUR

ProCredit ProCredit Erste 25.4 ProCredit 94 181.6 2 612.3 Intesa Sanpaolo Intesa Sanpaolo RBI Erste 3 718.9 849 1 680 224.0 KBC Group UniCredit KBC Group RBI 17 298.9 411.9 1 293.3 Intesa Sanpaolo 994 4 283.6 Erste UniCredit 4 355.2 1 621 UniCredit RBI KBC Group 1 604 1 159.0 6 811.1 92.0 74.5 Kosovo 14.7 Albania 71 48 Kosovo 116.5 Hungary Kosovo Bosnia & Herzegovina

75 142.3 Croatia 45.0 Serbia 78 Hungary 248.4 Albania Czech Republic 454 111.3 87 Romania Slovakia Serbia 69.0 298.1 1151.2 98 Bulgaria Hungary Poland Bosnia & Herzegovina 336.2 132 Slovakia Czech Republic 237 71.9 100.0 Poland Romania 405.5 134 Poland Romania 454.3 Bulgaria 190 Slovakia Bulgaria

CEE SME Banking Report 2018 45 SME Banking Club Banking Groups UNICREDIT

UniCredit in CEE countries in 2017

Number of branches Number of customers (ths.) SME Loan Portfolio, mln.EUR

ProCredit Erste ProCredit ProCredit 94 181.6 25.4 2 612.3 RBI Intesa Sanpaolo Erste Intesa Sanpaolo 3 718.9 849 1 680 224.0 KBC Group UniCredit KBC Group RBI 17 298.9 411.9 1 293.3 Intesa Sanpaolo 994 4 283.6 Erste UniCredit 4 355.2 1 621 UniCredit RBI KBC Group 1 159.0 1 604 6 811.1 34.2 Hungary 54 26 10.0 152.3 Slovenia Slovenia Hungary 49.0 Czech Republic 21.3 Hungary 264.3 Serbia 71 Bosnia & Herzegovina Serbia 1 388.1 113 Croatia Bosnia & Herzegovina

117 2 133.5 6 155.6 Croatia Romania Turkey 787 Turkey 129 2 432.1 Czech Republic Bulgaria 1 100.0 156 Turkey 4 717.5 Romania 168 Czech Republic Bulgaria

CEE SME Banking Report 2018 46 SME Banking Club Banking Groups KBC GROUP

UniCredit in CEE countries in 2017 KBC Group in CEE countries in 2017

Number of branches Number of customers (ths.) SME Loan Portfolio, mln.EUR Number of branches Number of customers (ths.) SME Loan Portfolio, mln.EUR

ProCredit ProCredit Erste ProCredit ProCredit ProCredit Erste 25.4 25.4 ProCredit 94 181.6 2 612.3 94 181.6 2 612.3 RBI Intesa Sanpaolo Erste Intesa Sanpaolo Intesa Sanpaolo Erste Intesa Sanpaolo RBI 3 718.9 849 1 680 224.0 849 1 680 224.0 3 718.9 UniCredit UniCredit KBC Group RBI KBC Group KBC Group RBI 17 298.9 KBC Group 17 298.9 411.9 1 293.3 Intesa Sanpaolo 411.9 1 293.3 Intesa Sanpaolo 994 4 283.6 994 4 283.6 Erste UniCredit Erste UniCredit 4 355.2 1 621 UniCredit 1 621 UniCredit 4 355.2 RBI KBC Group RBI 1 159.0 1 159.0 KBC Group 1 604 6 811.1 1 604 6 811.1 34.2 Hungary 54 26 10.0 152.3 Slovenia Slovenia 130.0 Hungary 49.0 Czech Republic 21.3 Hungary 264.3 Serbia Czech Republic 281.0 71 Bosnia & Herzegovina Slovakia Serbia 1 388.1 125 113 Croatia Bosnia & Herzegovina Slovakia

117 2 133.5 6 155.6 1 163.3 Croatia Romania Turkey 375 Bulgaria 787 207 Bulgaria 3 375.1 Turkey Hungary 129 2 432.1 Czech Republic Czech Republic Bulgaria 1 163.3 1 991.7 1 100.0 Bulgaria Hungary 156 Turkey 4 717.5 287 Romania 168 Czech Republic Czech Republic Bulgaria

CEE SME Banking Report 2018 47 SME Banking Club Banking Groups ProCredit

ProCredit in CEE countries in 2017

Number of branches Number of customers (ths.) SME Loan Portfolio, mln.EUR

ProCredit ProCredit Erste 25.4 ProCredit 94 181.6 2 612.3 Intesa Sanpaolo Erste Intesa Sanpaolo RBI 849 1 680 224.0 3 718.9 KBC Group UniCredit KBC Group RBI 17 298.9 411.9 1 293.3 Intesa Sanpaolo 994 4 283.6 UniCredit Erste 4 355.2 RBI 1 621 UniCredit 1 159.0 KBC Group 1 604 6 811.1

6 137.3 7 Bosnia & Herzegovina 195.5 Bosnia & Herzegovina Albania Albania

6.3 7 Romania Romania 28 221.1 704.2 Kosovo 10.5 Romania Bulgaria Albania 10 259.2 Bulgaria FYRM 25 8.6 587.0 11 508.2 Serbia FYRM Serbia FYRM Kosovo

CEE SME Banking Report 2018 48 SME Banking Club Banking Groups INTESA SANPAOLO

ProCredit in CEE countries in 2017 Intesa Sanpaolo in CEE countries in 2017

Number of branches Number of customers (ths.) SME Loan Portfolio, mln.EUR Number of branches Number of customers (ths.) SME Loan Portfolio, mln.EUR

ProCredit ProCredit ProCredit Erste ProCredit Erste 25.4 ProCredit 25.4 ProCredit 94 181.6 2 612.3 94 181.6 2 612.3 Intesa Sanpaolo Erste Intesa Sanpaolo RBI Intesa Sanpaolo Erste Intesa Sanpaolo RBI 849 1 680 224.0 3 718.9 849 1 680 224.0 3 718.9 UniCredit UniCredit KBC Group RBI KBC Group KBC Group RBI 17 298.9 KBC Group 17 298.9 411.9 1 293.3 Intesa Sanpaolo 411.9 1 293.3 Intesa Sanpaolo 994 4 283.6 994 4 283.6 UniCredit Erste UniCredit Erste 4 355.2 4 355.2 1 621 UniCredit 1 621 UniCredit RBI RBI KBC Group 1 159.0 KBC Group 1 159.0 1 604 6 811.1 1 604 6 811.1

30 1 33.8 Romania Czech Republic 233.9 Croatia Slovenia 6 137.3 47 Albania 7 Bosnia & Herzegovina 195.5 Bosnia & Herzegovina Albania Albania 52 Slovenia 6.3 7 Romania 54 230 60.0 Romania 28 221.1 704.2 Bosnia & Herzegovina Croatia 884.4 Kosovo Slovakia 10.5 Romania Bulgaria Serbia 1 590.0 Albania 102.0 Czech Republic 10 259.2 76 Serbia Bulgaria FYRM Hungary 587.0 201 11 25 8.6 508.2 158 62 Serbia FYRM Serbia Croatia Hungary 1 541.5 FYRM Kosovo Serbia Slovakia

CEE SME Banking Report 2018 49 SME Banking Club Banking Groups ERSTE

Intesa Sanpaolo in CEE countries in 2017

Number of branches Number of customers (ths.) SME Loan Portfolio, mln.EUR

ProCredit Erste ProCredit 25.4 ProCredit 94 181.6 2 612.3

Intesa Sanpaolo Erste Intesa Sanpaolo RBI 849 1 680 224.0 3 718.9 KBC Group UniCredit KBC Group RBI 17 298.9 411.9 1 293.3 Intesa Sanpaolo 994 4 283.6 UniCredit Erste 4 355.2 1 621 UniCredit RBI KBC Group 1 159.0 1 604 6 811.1

62 4.6 377.6 Serbia Slovakia 480.0 Serbia Slovakia 148 Hungary

153 529 Croatia Romania 586.9 Hungary 2 247.5 248.0 Czech Republic 271 663.1 Romania Slovakia Romania 177.0 517 Czech Republic Czech Republic 1 673.0 Croatia

CEE SME Banking Report 2018 50 SME Banking Club Disclaimer

This report was produced by SME Banking Club with the greatest of care and to the best of its knowledge and understanding. However, neither Gidulyan Company and GG Company Sp. z o.o. nor its related entities (collectively, the “SME Banking Club”) is able to provide a guarantee with regard to its content and completeness, nor does it accept any liability for losses that might arise from the use of this information.

The opinions expressed in this material are those of SME Banking Club at the time of writing and are subject to change at any time without notice. Unless otherwise indicated, all figures are unaudited. This material is provided for informational purposes only and is for the exclusive use of the recipient. It does not constitute an offer or a recommendation to buy or sell financial instruments or services and does not release the recipient from exercising their own judgment.

The recipient is particularly advised to verify that the information provided is in line with their own circumstances with regard to any legal, regulatory, tax or other consequences, with the help of a professional advisor if necessary.

This material may not be reproduced either in part or in full without the written permission of SME Banking Club.

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