Expobank JSC Belgrade, a wholly-owned subsidiary of Expobank CZ a.s. (Czech Republic), today reported on key financial results that have been achieved since its purchase by Expobank CZ in February 2017. In the six months from 1 March 2017, Expobank Serbia has conducted a successful rebranding and optimised operations, while increasing corporate lending, improving capital ratios and net interest margin.
Expobank Serbia has already made significant progress at implementing its updated strategy, which will focus on supporting small- and medium-sized enterprises engaged in international trade with major Serbian trading partners like the European Union and Russia. Successful work in this area has seen the bank’s corporate loan portfolio, which stood at RSD 3.8 billion as of 1 March 2017, grow by 29% to RSD 5.0 billion as of 25 August 2017 (according to unaudited management accounts). The growing share of loans to businesses working with the EU and Russia has reached 15% as of the date of this release.
While increasing lending to small- and medium-sized businesses, Expobank Serbia has optimised its branch network in the country, which led to a planned-for decline in deposits in the period immediately following the change in ownership and rebranding. Deposits stabilised in August 2017, however, and the bank expects to see a return to growth in the remaining months of 2017.
Thanks to active management of assets and liabilities, the bank has managed to significantly strengthen its net interest margin, which is now comparable to that of leading banking institutions in Serbia. This, combined with cost cutting achieved by optimisation of business processes, has enabled us to transform Expobank JSC Belgrade from a loss-making business into a bank that is profitable.
Expobank Serbia CEO Borislav Strugarevic said: “We have completed the strategic realignment, rebranding and business process optimisation successfully and quickly, and now Expobank Serbia will continue to focus on supporting Serbian enterprises with high-quality financial products that help them to grow their business.
“Thanks to its ties with other Expobank entities in the Czech Republic and Russia, Expobank JSC Belgrade is an ideal partner for Serbian enterprises looking to engage in business in the EU and Russian markets – two of this country’s largest trading partners. We remain committed to both our retail and corporate lending businesses, and will leverage the expertise at providing a wide range of banking products with excellent customer service.
“The Expobank group and its majority shareholder, Mr. Igor Kim, are committed to the long-term development of its banking franchise in the Serbian market. Each entity in the group is privately-owned and operates with a high degree of independence in order to adapt to its local market. The investment in Expobank Serbia is just the first of many planned investments in Serbia itself, which will serve as a hub for future investments in the Balkans.”