Business News

Market Shares of Biggest Banks in Decline

Ljubljana, 25 May (STA) - Slovenia's largest banks have been loosing their market shares in recent years mostly to the advantage of foreign ones. The market leader, NLB, which is over 90% directly or indirectly owned by the state, lost about one-sixth of its market in the past three years.

Publicly available data show that NLB had a 25.33% market share at the end of 2012, down from 30.30% in 2009, 27.53% the year later and 26.71% in 2011 according to data from the central bank.

The second bank, NKBM, which is also majority state-owned, has maintained a market share of a little below 10% in recent years. Last year it stood at 9.57%, which is level with the year 2010, but somewhat lower than in 2011 when it stood at 9.90%.

Climbing to third place last year was the SID Bank, which is not a classic commercial bank, but a state-owned export and development bank founded to provide guarantees and financing for Slovenian companies exporting abroad. The bank increased its market share to 9.02% in 2012 from 7.75% in 2010.

The third largest commercial bank remains Abanka Vipa, another indirectly state-owned bank. Its market share fell to 7.93% last year from 8.67% in 2011 and 9.06% the year before.

Two foreign-owned banks follow: Unicredit banka, a member of the Italian banking group Unicredit, has increased its market share to 6.21% at the end of 2012 from 5.96% in 2010 and the SKB banka of the French Societe General Group raised its to 5.72% from 5.36%.

Banka Koper, which is owned by the Italian banking group Intesa Sanpaolo, got ahead of Banka Celje, a member of the NLB group. Banka Koper increased its market share to 5.11% in 2012 from 4.50% in 2010, while Banka Celje went down to 5.01% from 5.17%.

The Austrian-owned Hypo Alpe Adria bank is the only foreign bank to have decreased its market share in the period between 2010 and 2012, from 4.35% to 4.19%.

Gorenjska banka has always ranked as the 10th Slovenian bank. Its market share was above 4% in 2011, but then returned to the 2010 level at the end of last year at 3.95%.

Following down the list are foreign banks, which increased their market shares. Raiffeisen banka from the Austrian group Raiffeisen Bank International increased its share to 3.13% from 2.78%, the Russian-owned Sberbank banka, formerly Austrian-owned Volksbank, boosted its share to 2.95% from 1.86% and the Austrian-owned bank Sparkasse to 2.43% from 2.19%.

Trailing on the list from 14th to 17th place are domestic banks Probanka (down 2.27% from 2.57%), Factor banka (up 2.27% from 2.16%), Deželna banka Slovenije (down 1.91% from 1.95%) and Poštna banka Slovenije (up 1.76% from 1.63%). Three savings banks are at the bottom of the list with less than 1% of the market.

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