Ceskoslovenska obchodni banka’s (CSOB) successful year stemmed from a number of initiatives, including simplification of its retail and SME banking processes and effective use of a multi-branding strategy. The growth achieved in 2005 continued into this year with a 31% increase in underlying net profit in the first quarter.
CSOB launched a new internet-based product for corporate clients, strengthened synergies with its parent, KBC Group, to establish shared services and product factories to serve all central Europe affiliates, and acquired two new pension funds. Its subsidiary, Postal Savings Bank, renewed its distribution agreement with the Czech Post for a further 10 years to 2017.
Chief executive Pavel Kavánek explains CSOB’s strong performance: “CSOB Group has achieved its best results, both historically and among its peers, thanks to the focus on housing needs, advisory for personal and family finance, asset management and bancassurance. Without losing other market shares, CSOB continuously strengthens its positions in its focal areas: 32% market share in financing housing needs and 27% market share in mutual funds and discretionary asset management. Still, we keep one of the highest asset quality ratios in the country.
“Our key goal for the future is to maintain the successful multibranding and innovation-based concept, and enhance our operational and distributional excellence.”
