Stopanska Banka was recently privatized after nearly 60 years in business by the National Bank of Greece. Before getting into more details, can you give us a brief history of your company and your current capital structure?
We are the oldest bank in the country, founded in 1944, just after World War II. We have transformed as the systems of our country have changed, like in 1964 when the banking system was re-established, and in 1972 the banks were transformed into shareholding companies. Another transformation took place in the 1980's when the voting rights were transferred to the shareholders, and then of course the first actual reforms in the 1990s with the Markovich law when the banks really become shareholding companies. In 1995 was the process of bank restructuring in the country and our bank was included in this program; it was completed last year with our purchase by strategic investment partners of the National Bank of Greece, the EBRD, and IFC. Greece has 70%, and the other two 22%. Domestic shareholders own 8%. We are now the bank with the largest net worth in the country, we have the most sophisticated branch network in the country. Twenty two main branches, and 800 representative locations around the country. You can deal with us anywhere in the country. And with our partners, we are present all throughout the region.
Last year you had around 350 USD assets and a market share of around 45%, making you the largest bank in Macedonia. How have those figures evolved since the privatization of the bank?
Total assets at the end of this year amounted to 500 million Euros, or about 1 billion DM. We started immediately to grow; household deposits increased by 42%. The number of new clients in the previous year increased by 3,500 new clients. The projections for this year are even more ambitious. We aim to lead in banking in Macedonia and throughout the region. It's a big challenge.
How has the IFC and EBRD shareholding changed the dynamic of the bank?
These two groups, together with the National Bank of Greece, have worked to support us to increase its efficiency and reorganization including new IT technology allowing us to have real time balance sheets of the bank and our clients. Their experience has allowed the bank to improve greatly.
What has been the main motivation for the National Bank of Greece to enter the Macedonian market, and in your bank?
Macedonia is in the heart of the Balkans. For six or seven years in a row we have had macroeconomic stability, stability of the exchange rate, which is a solid background for potential investors. And NBG has a strategy to expand to be a leading bank in the region. And they want to have more efficiency in Macedonian banking and contribute to economic stability and increase domestic savings which contributes to economic growth. This creates new employment which contributes to more prosperity in the country which is good for them.
This is good news for the citizens of the country, but maybe bad for smaller banks that are less efficient than ones with large assets. How are they going to evolve? Are there going to be mergers?
The Governor of the National Bank who was my professor says it is beneficial to follow what is happening in more mature market economies and not to reinvent anything. So we are aware that all around the world of globalization and consolidation, there is very strong competition especially in the banking sector, and in the end it is for the benefit of the client so they have easy access to banking services. There are cheaper prices. So competition in Macedonia benefits the people, and we are witnessing with the process of rapid reduction of domestic interest rates for example. | Do you have plans to acquire smaller banks in Macedonia?
Our priority for this year is to finish the restructuring. We are open for discussions and enlargement, and to increase the range of our activities; our goal is to create more benefits for the clients.
You manage your bank in accordance with EBRD standards. What are those standards?
We are a legal entity in the Republic of Macedonia which means we have to fulfill regulations and laws and also guidelines from the Central Bank. But we are also a part of NBG which is a part of the Euroland Bank which is part of the EU. That means we have to fulfill the standards of the EU. At the end of 1999, Macedonia signed the Agreement for Association and Stability with the EU, but our Bank as part of NBG is already part of the EU, so we had to be much faster in our reforms. From that point of view, although Macedonia isn't part of the EU, we already are.
At the same time, it is a great opportunity to be a part of both communities.
The advantages are great. We can borrow money at almost the same rates as the Euroland Banks. This is a big advantage and challenge. We can work through our network; we can financially have support and trade links with all countries worldwide.
Do you have any markets you are specifically targeting?
We are following the needs of our clients worldwide, and our main goal is to be the leading bank in the region.
We heard that the Londonian Banker magazine listed your bank as the 20th largest in central Europe. Are you satisfied with this position, and do you have goals of the number one spot?
It is a big event for us. We are in competition with banks from Poland, from Czech, from Hungary, which are also subsidiaries of foreign banks, and now with our ambitious plans for the region, we see that we will be moving much higher than in previous years.
What is your investment policy, your strategic guidelines to reach this goal?
We support big and small companies. We are not prone to one client. Our goal is to be client oriented. From that point of view, we are present in wholesale, retail, investments, securities, investment banking. Each client is important. The bank is also easing access to branch access around the region. We are opening 10 new branches in the capital.
We are in a period where everything is moving forward quickly. You're the managing director since November 1999 - this must be an interesting period of your life to see the bank growing and privatizing.
Actually it is really a challenge to restructure and to establish the credibility of the bank as the leader in the country. We have made things more efficient, which ultimately contributes to the increased living standards of the citizens of Macedonia. |
