From its first holding in the Czech Republic, the group has consistently been a pioneer bringing foreign investment to banking sectors in emerging economies before larger global players were ready to participate.
International Commercial Bank in Albania is a classic example of the model, established in 1997 – the year of the pyramid savings schemes crisis. “It is a matter of great pride for the bank that it has been a part of the growth of the transition economy in Albania,” says CEO Mahendra Singh Rawat.
And its 10th anniversary also proved to be its most successful year to date. The bank cemented its recovery from the 2005 economic slowdown, with 2007 profits rising a staggering 527%, to almost ALk100m ($1.05m), on the back of a 37% rise in assets.
The bank has made admirable efforts to improve asset quality, with non-performing loans more than halving in 2007 to 5%. It also focused on bringing down the cost of funds, with a drive to raise low-cost deposits – current accounts almost doubled, to 29.5% of total deposits.
Mr Rawat is not resting on his laurels, however. “The bank is now well poised for growth and has plans for increasing its customer base with the support of innovative technology products and customised services,” he says. “In 2009, the bank will also be diversifying its business to agriculture banking and rural sector development, an area neglected hitherto by Albanian banks.”
