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Trend 5: Eastern and Central Europe

Trend 5: Eastern and Central Europe

Remaining marginal players to sell

Some large regional Western banks are dismantling their business in the region, with subscale and loss-making operations targeted for sale in 2019, leading to opportunities for other players. 

Balkan bank privatizations

Privatization efforts in the West Balkans are gathering speed. Governments need cash and wish to relinquish the burden of running large retail banks, creating openings for investors looking to tap into the growth markets of Southeast Europe. 

NPL sales still desirable

Substantial progress has been made in NPL portfolio cleansing. However, NPL sales are still desirable in the region, leading to a further decline in the NPL ratio and higher profitability. Additionally, in the next 2 years, changes in legislation, combined with improving fundamentals, should see almost all countries experiencing lending growth, with even the laggards picking up.  

"Marginal players are ready to consider offers." -Tamás Simonyi, Partner, Deal Advisory, Financial Services, CEE

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