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Dies ist eine<br />
Financing Growth in Emerging Europe<br />
Carlo Vivaldi,<br />
<strong>CFO</strong>, Bank Austria/UniCredit Group, Vienna, Austria
MANAGING GROWTH IN A NEW LANDSCAPE<br />
1 st <strong>CFO</strong> Summit Emerging Europe & CIS<br />
Carlo Vivaldi – <strong>CFO</strong> Bank Austria<br />
Vienna, 8 October 2008
A GLOBAL HIGHLY FRAGILE RISK ENVIRONMENT ...<br />
FREEZE-UP IN THE MONEY MARKETS<br />
250<br />
225<br />
200<br />
175<br />
3M: Euribor vs OIS<br />
3M: GBP Libor vs SONIA<br />
3M: USD Libor vs. OIS<br />
basis point<br />
150<br />
125<br />
100<br />
75<br />
50<br />
25<br />
0<br />
Jun-07 Oct-07 Feb-08 Jun-08 Oct-08<br />
Dislocations in financial markets persist as perceived counterparty risk in the<br />
financial system has risen to extreme level<br />
In the real economy signs of weakness now spreading from the US to Japan and<br />
Europe<br />
Uncertainty is reflecting in the high level of credit spreads<br />
2<br />
Note: OIS=Overnight Indexed Swap; LIBOR/EURIBOR=Inter-Bank Offer Rate; SONIA=Sterling Overnight Interbank Average Rate<br />
The difference is a measure of tension in the money market<br />
Source: Bloomberg, UniCredit Global Research
... IS SETTING HIGH MARKET VOLATILITY ...<br />
S&P500, % - IMPLIED VOLATILITY INDEX<br />
40<br />
35<br />
30<br />
Canada CP<br />
liquidity squeeze<br />
Northern<br />
Rock warning<br />
and bailout<br />
Spreading of US<br />
recessionary fears &<br />
FED unexpected 75 bp<br />
rate cut<br />
Lehman Brothers<br />
default, public<br />
intervention to support<br />
AIG, Merrill Lynch<br />
acquisition by BofA<br />
25<br />
20<br />
15<br />
10<br />
5<br />
Sachsen<br />
LB<br />
bailout<br />
UBS reports US$<br />
10 bn write-downs<br />
and BofA<br />
liquidates US$ 12<br />
bn cash fund<br />
Bear Sterns<br />
collapse and<br />
subsequent<br />
acquisition by<br />
JPMorgan<br />
Chase<br />
Freddie Mac and<br />
Fannie Mae plunge<br />
on capital concerns<br />
and subsequent<br />
government bail-out<br />
0<br />
01/05/07<br />
31/05/07<br />
30/06/07<br />
30/07/07<br />
29/08/07<br />
28/09/07<br />
28/10/07<br />
27/11/07<br />
27/12/07<br />
26/01/08<br />
25/02/08<br />
26/03/08<br />
25/04/08<br />
25/05/08<br />
24/06/08<br />
24/07/08<br />
23/08/08<br />
22/09/08<br />
3<br />
Source: Bloomberg
... EVEN IF POSITIVE SIGNALS COME FROM EMERGING MARKETS’<br />
RESILIENCE AND CORRECTION IN COMMODITY PRICES<br />
9<br />
8<br />
7<br />
6<br />
5<br />
4<br />
3<br />
2<br />
1<br />
GDP GROWTH<br />
(historical and IMF forecast)<br />
Advanced Economies<br />
Emerging economies<br />
150<br />
140<br />
130<br />
120<br />
110<br />
100<br />
90<br />
80<br />
70<br />
60<br />
OIL PRICE (Brent, USD)<br />
0<br />
1970 1976 1982 1988 1994 2000 2006 2012<br />
50<br />
Jan-07 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08<br />
Emerging markets are more and more important in the global economy and show<br />
resilience thanks to very dynamic economies<br />
Correction in commodity prices will help both producers and consumers fuelling<br />
exports and supporting purchasing power<br />
4<br />
Source: Bloomberg, UniCredit Global Research
AGENDA<br />
The new scenario: increased importance of<br />
commercial franchise<br />
CEE economic and financial perspectives<br />
UniCredit strategic commitments in CEE<br />
5
LOOKING AT BANKING, THE EUROPEAN LANDSCAPE IS<br />
CHARACTERIZED BY A GROWING FUNDING GAP...<br />
EUROZONE BANKS FUNDING GAP (€ tln)<br />
+52%<br />
Funding gap<br />
Loans to customers<br />
1.4 2.2 2.4<br />
13.6<br />
12.1<br />
11.2<br />
9.9<br />
8.5<br />
7.1<br />
Deposits from customers<br />
2003 2007 2010<br />
The funding gap is expected to increase also in the next 3 years: banks need to raise<br />
a higher share of customer deposits to finance their development<br />
6<br />
Note: customers’ loans ad deposits do not include interbank activity<br />
Source: UniCredit Research and Strategy, analysis based on ECB data
... AND BY DIFFERENT GROWTH PERSPECTIVES BETWEEN<br />
WESTERN AND CENTRAL-EASTERN COUNTRIES<br />
REAL GDP GROWTH (%)<br />
6.4<br />
5.2<br />
BANKING PENETRATION GAP<br />
(Loans+Deposits) / GDP, %<br />
227<br />
2.3<br />
1.7<br />
60<br />
82<br />
97<br />
Eurozone CEE (1)<br />
Avg 05-07 Avg 08-10<br />
2007<br />
Eurozone<br />
2004 2007 2010<br />
CEE<br />
Growth has peaked in 2006-2007 in CEE, but will remain sensibly higher than in<br />
Eurozone<br />
Financial deepening process to continue, stimulated by volumes growth<br />
Source: UniCredit Group CEE Research Network, Bloomberg<br />
7 Note: (1) Hungary, Czech Rep., Slovakia, Poland, Slovenia, Croatia, Bosnia, Bulgaria, Romania, Serbia, Latvia, Lithuania, Estonia, Russia, Kazakhstan, Ukraine, Turkey
THE NEW LANDSCAPE IS FAVOURING LARGE COMMERCIAL<br />
FRANCHISES<br />
GROWING<br />
FUNDING GAP<br />
Re-intermediation process<br />
Increased importance of retail clients<br />
FRAGILE RISK<br />
ENVIRONMENT<br />
More balance of Originate-to-Distribute model versus<br />
customer relationship model<br />
Strengthened risk management functions<br />
DIFFERENT<br />
GROWTH<br />
PERSPECTIVES<br />
Diversification of investment and growing focus on<br />
under-penetrated areas in banking terms<br />
INCREASED IMPORTANCE OF DISTRIBUTION FRANCHISE<br />
8<br />
Source: UniCredit Research and Strategy, ECB
UNICREDIT HAS BUILT THE # 1 FRANCHISE IN EUROPE SERVING<br />
40 MLN CUSTOMERS AND IN THE CURRENT SCENARIO CAN<br />
RELY ON SOME KEY COMPETITIVE ADVANTAGES<br />
Top 3<br />
Top 5<br />
Top 10<br />
% of 2007<br />
Revenues<br />
90%<br />
6%<br />
4%<br />
UniCredit has the broadest<br />
presence in Europe among<br />
peers (22 countries), with a<br />
network of ~10,000 branches<br />
(~2,000 more than the 2 nd<br />
player) and can leverage on:<br />
unparalleled branch<br />
network connecting us to<br />
millions of customers<br />
global factories<br />
supplying the network<br />
with top notch products<br />
at competitive prices<br />
common platforms<br />
across Europe to<br />
increase efficiency and<br />
effectiveness<br />
significant in-house<br />
expertise in all aspects<br />
of the banking industry<br />
9
CEE WILL BE THE MOST IMPORTANT RECIPIENT OF CAPITAL IN<br />
THE NEXT THREE YEARS<br />
ALLOCATED CAPITAL, % mix<br />
30.4<br />
32.9 31.7<br />
2007<br />
2010<br />
16.2 15.9<br />
18.5<br />
16.6<br />
15.8<br />
12.0<br />
10.0<br />
Retail CEE Region Corporate MIB Other<br />
Significant increase in the CEE region, from 18% to over 30%<br />
Considerable reduction in the Markets&Investment Banking activities (-4.6 pp)<br />
10<br />
Note: all figures under Basel II
AGENDA<br />
The new scenario: increased importance of<br />
commercial franchise<br />
CEE economic and financial perspectives<br />
UniCredit strategic commitments in CEE<br />
11
DESPITE AN ECONOMIC DEPENDENCY ON CAPITAL INFLOWS,<br />
MAJOR CEE COUNTRIES ARE RESILIENT TO A STRESS<br />
SCENARIO ...<br />
DEPENDENCY ON CAPITAL INFLOW<br />
700<br />
Ukraine<br />
The level of the cost of risk<br />
is different in the area<br />
Cost of risk<br />
(1)<br />
600<br />
500<br />
400<br />
300<br />
200<br />
100<br />
0<br />
Russia<br />
Turkey<br />
Serbia<br />
Romania<br />
Lithuania<br />
Hungary<br />
Croatia<br />
Poland<br />
Czech Rep.<br />
Slovakia<br />
Kazakhstan<br />
Latvia<br />
Estonia<br />
Bulgaria<br />
0 0.2 0.4 0.6 0.8 1<br />
Most CEE countries can rely<br />
on low level of external<br />
debt<br />
In a stress scenario (3) ,<br />
major CEE countries would<br />
be more resilient – on<br />
average GDP reduced by<br />
less than 1% – than some of<br />
the major western countries<br />
(e.g. UK and Spain)<br />
Sensitivity to capital inflows: (2)<br />
12<br />
Note: (1) Cost of Risk is calculated as CDS of the country as of 29/09/2008<br />
(2) Calculated as (Current Account – FDI (excluding RE & Financial Sector)) / VA in tradable sectors + Imports - Exports<br />
(3) A scenario implying a relevant reduction of capital inflows.<br />
Source: Bloomberg, local CBs, UniCredit Group CEE Research Network
... WHILE THE REAL RISK SEEMS TO BE INFLATION<br />
INFLATION ON THE RISE<br />
(CPI index, avg)<br />
HIGH WEIGHT OF FOOD AND ENERGY IN<br />
THE CPI BASKET<br />
(% of total consumption)<br />
15<br />
10<br />
Broader Europe<br />
50<br />
40<br />
30<br />
5<br />
0<br />
SEE&Baltics<br />
Central Europe<br />
2005 2006 2007 2008f 2009f 2010f<br />
20<br />
10<br />
0<br />
CE SEE&B Broader Europe<br />
Food<br />
Energy<br />
A global challenge, which leaves policy makers very limited instruments<br />
CEE more affected due to the high weight of food and oil in the consumption basket<br />
Negative impact on consumption and on international competitiveness<br />
13<br />
Note: CE includes Hungary, Czech Rep., Slovakia, Poland, Slovenia; SEE&B includes Croatia, Bosnia, Bulgaria, Romania, Serbia, Latvia, Lithuania, Estonia; Broader Europe<br />
includes Russia, Kazakhstan, Ukraine, Turkey<br />
Source: UniCredit Group CEE Research Network
BUT CEE REGION CAN RELY ON SOLID GROWTH DRIVERS<br />
SUCH AS REAL INCOME CONVERGENCE FAVORING<br />
REALIGNMENT IN LIVING STANDARDS<br />
CONVERGENCE IN REAL INCOMES<br />
(GDP per capita in PPS, EU27=100) (1)<br />
46,2<br />
49,6<br />
53,9<br />
2000 2004 2007<br />
REALIGNMENT IN CONSUMPTION PATTERNS<br />
(Consumption of middle class, % over total<br />
expenditure)<br />
(2) (3)<br />
60<br />
50<br />
40<br />
30<br />
Western<br />
Europe<br />
Latvia<br />
CEE<br />
Slovakia<br />
Croatia<br />
Estonia<br />
Lithuania Poland<br />
Romania<br />
Bulgaria<br />
20<br />
30 40 50 60 70 80 90<br />
Primary goods<br />
BALANCED HOUSEHOLDS SAVING POSITION<br />
(Household net fin and real wealth % of GDP,<br />
2000=100) (1)<br />
120<br />
100<br />
80<br />
Net financial wealth<br />
Net financial and real wealth<br />
2000 2001 2002 2003 2004 2005 2006 2007<br />
14<br />
Note: (1) CEE including new EU members states + Croatia and Turkey; financial and real wealth excl. the Baltics. (2) Data as of 2005. (3) Primary goods: food and non-alcoholic<br />
beverages; clothing and footwear; utilities; health. Secondary goods: alcoholic beverages, tobacco and narcotics; transport; purchase of vehicles; operation of personal transport<br />
equipment; transport services; communications; recreation and culture; restaurants and hotels; miscellaneous goods and services; education; furnishings, household equipment and<br />
routine house maintenance - Source: UniCredit Group CEE Economic Research, Eurostat
BANKING SYSTEM IS WELL CAPITALIZED, ALSO THANKS TO A<br />
WIDE PRESENCE OF INTERNATIONAL PLAYERS ...<br />
CAPITAL ADEQUACY RATIO<br />
(2007, %)<br />
FOREIGN BANKS PENETRATION<br />
(2007, % of total assets in CEE)<br />
Austria<br />
12.7<br />
Germany<br />
12.5<br />
Italy<br />
Serbia<br />
Turkey<br />
Russia<br />
BiH<br />
Croatia<br />
10.9<br />
18.9<br />
16.8<br />
16.4<br />
15.4<br />
27.9<br />
Local<br />
banks<br />
55.7%<br />
44.3%<br />
Foreign<br />
banks<br />
50.2%<br />
Estonia<br />
Ukraine<br />
14.8<br />
13.9<br />
40.4%<br />
Romania<br />
12.7<br />
Slovakia<br />
Poland<br />
12.4<br />
12.4<br />
9.4%<br />
Cezch Rep<br />
11.5<br />
Latvia<br />
11.1<br />
Lithuania<br />
Bulgaria<br />
Hungary<br />
10.9<br />
10.8<br />
10.6<br />
Top global<br />
players (1)<br />
Other foreign<br />
players<br />
Sub-regional<br />
players (2)<br />
Slovenia<br />
9.3<br />
15<br />
Note. (1) Top global players: UniCredit Group, RZB, KBC, ERSTE, SOGEN, Intesa San Paolo, OTP; (2) Sub-regional players: EFG, NBG,<br />
Nordea, Pireaus, Sampo, SEB, Swedbank<br />
Source: UniCredit Group CEE Research Network, Local Banking Supervision Reports, IMF Financial Stability Report April 2008
... AND CAN RELY ON A CONTINUOUS LENDING AND DEPOSITS<br />
GROWTH BOTH IN RETAIL AND CORPORATE SEGMENTS<br />
VOLUME GROWTH - CEE<br />
(CAGR 07-10, by segment, Eur bn)<br />
998<br />
LOANS<br />
24%<br />
25%<br />
1,915<br />
2007 2010<br />
Retail<br />
907<br />
DEPOSITS<br />
21%<br />
19%<br />
Corporate<br />
1,545<br />
2007 2010<br />
RETAIL BUSINESS<br />
Households improving their living standards and<br />
prepared to stretch their balance sheet positions<br />
Opportunities in:<br />
• consumer financing remains an attractive<br />
business as consumption demand is strong<br />
• demand for housing remains, as supply gap<br />
with EU still exists<br />
CORPORATE BUSINESS<br />
<br />
<br />
Companies are now exploiting the benefits from past<br />
investments but show a renewed demand for bank<br />
lending<br />
Further growth of corporate business is also tied to new<br />
product offering<br />
• corporate deposits and cash management services<br />
• leasing and Factoring<br />
• trade finance<br />
16<br />
Source: UniCredit Group CEE Research Network
IN PARTICULAR THERE ARE SOUND PROSPECTS FOR<br />
CORPORATE SECTOR ...<br />
15<br />
10<br />
5<br />
0<br />
INVESTMENT GROWTH (% real)<br />
avg 2005-'07<br />
avg 2008-'10<br />
Central Europe SEE&B Broader Europe<br />
Manufacturing still exploiting<br />
benefits of past investments,<br />
despite some lower demand<br />
(particularly in consumption<br />
goods) and pressures on<br />
competitiveness<br />
Trade patterns hold, as<br />
globalised production models<br />
are now consolidated<br />
Structural funds and<br />
infrastructural projects to<br />
provide some relief to<br />
construction, while the real<br />
estate sector enters a<br />
correction phase<br />
STILL HIGH INVESTMENTS EVEN IF SLIGHTLY DECELERATING<br />
17 Source: UniCredit Group CEE Economic Research
... WITH SIGNIFICANT OPPORTUNITIES FOR BANKS<br />
CORPORATE LOANS PENETRATION GAP<br />
(% of GDP, 2007)<br />
Italy<br />
Germany<br />
Austria<br />
Slovenia<br />
Latvia<br />
Estonia<br />
Bulgaria<br />
Kazakhstan<br />
Ukraine<br />
Lithuania<br />
Croatia<br />
Bosnia-H.<br />
Hungary<br />
Russia<br />
Slovakia<br />
23<br />
Serbia<br />
21<br />
21<br />
Czech R.<br />
Turkey<br />
19<br />
Romania<br />
18<br />
Poland<br />
15<br />
26<br />
32<br />
31<br />
29<br />
29<br />
38<br />
37<br />
40<br />
46<br />
44<br />
44<br />
53<br />
52<br />
52<br />
CORPORATE BUSINESS IN CEE-10 (1) :<br />
LENDING VOLUMES (% on total lending)<br />
Trade<br />
Finance<br />
Factoring &<br />
Forfeiting<br />
Leasing<br />
16<br />
17<br />
5 3<br />
Overdrafts<br />
59<br />
Loans<br />
Good opportunities coming from:<br />
low penetration of corporate loans in comparison with western countries<br />
low diffusion of new financial products different from traditional lending<br />
18<br />
Note: (1) CEE-10: BG, HR, CZ, HN, PL, RO, RU, SK, TK, UA Source: UniCredit Group CEE Research Network on McKinsey estimates<br />
Source: UniCredit CEE Research Network, BIS
RISK MANAGEMENT WILL BE A KEY SUCCESS FACTOR SO<br />
THAT BEING MEMBER OF A MAJOR GROUP IS AN IMPORTANT<br />
ADVANTAGE<br />
Risk management will become a crucial capability,<br />
especially in retail, as banking systems in the region are not<br />
experienced in managing risks during economic slowdown<br />
There is a widespread presence of internal rating and scoring<br />
systems, but what is lacking is history: all databases are quite<br />
“young” when compared to western banks standards<br />
In this scenario, banks belonging to international groups<br />
could be better positioned than local players having the<br />
opportunity to exploit well-established risk management<br />
systems<br />
19
AGENDA<br />
The new scenario: increased importance of<br />
commercial franchise<br />
CEE economic and financial perspectives<br />
UniCredit strategic commitments in CEE<br />
20
CEE REGION IS TODAY A KEY PART OF UNICREDIT<br />
DELIVERING GREAT PROFITABILITY ...<br />
GROUP REVENUES BREAKDOWN (2007, %) 1<br />
Germany<br />
17<br />
51<br />
Austria<br />
Other<br />
9<br />
3<br />
CEE<br />
20<br />
Other<br />
16<br />
MIB 4<br />
Corporate<br />
31<br />
49<br />
Retail<br />
Italy<br />
CEE represents:<br />
20% of Group’s revenues<br />
38% of UniCredit branches<br />
more than 40% of the Group’s employees<br />
21<br />
Note: (1) At constant rates; other incl. virtual bank and local minorities<br />
Source: UniCredit CEE Research Network
... AS THE GROUP CAN ENJOY AN UNRIVALLED PRESENCE IN<br />
19 COUNTRIES, WITHIN TOP 5 IN 10 OF THEM<br />
RANKING (dec 07), TOTAL ASSETS AND EVA (1) (€ mn)<br />
Poland<br />
No. 1<br />
€ 37bn,<br />
473<br />
Czech Rep.<br />
No. 4<br />
€ 11bn,<br />
70<br />
Slovakia<br />
No. 5<br />
€ 4.0bn, 29<br />
Hungary<br />
No. 7<br />
€ 6.1bn,<br />
47<br />
Slovenia<br />
No. 7<br />
€ 2.1bn,<br />
7<br />
Main Presence<br />
Croatia<br />
No. 1<br />
€ 11bn,<br />
85<br />
Bosnia<br />
No. 1<br />
€ 2.1bn,<br />
13<br />
Serbia<br />
No. 7<br />
€ 0.9bn, 14<br />
Russia<br />
No. 10<br />
€ 10.3bn,<br />
121<br />
Ukraine<br />
No. 4<br />
€ 5.0bn,<br />
n.a. 2<br />
Romania<br />
No. 7<br />
€ 3.6bn,<br />
31<br />
Bulgaria<br />
No. 1<br />
€ 4.6bn,<br />
71<br />
Kazakhstan<br />
No. 5<br />
€ 6.1bn,<br />
n.a. (2)<br />
Turkey (3)<br />
No. 5<br />
€ 33bn,<br />
133<br />
22<br />
Note: (1) according to Basel 1; (2) Newly acquired banks; (3) Total Assets of Koc Financial<br />
Services (incl. Yapi Kredi). EVA for Turkey is pro rata for UCG
IN THE LAST YEARS THE GROUP HAS COMPLETED THE<br />
INTEGRATION PROCESS OF CEE BANKS AND IS READY TO<br />
FOCUS ON ORGANIC GROWTH…<br />
INTEGRATION PHASE COMPLETED<br />
Completion of all mergers<br />
between previous UniCredit<br />
and HVB/Bank Austria<br />
subsidiaries<br />
Introduction of UniCredit<br />
Brand throughout CEE (1)<br />
Reduction of IT Platforms in<br />
CEE as a basis for future<br />
synergies and common product<br />
developments<br />
Unification of CEE<br />
Governance Model<br />
FOCUS FOR NEXT YEARS<br />
High-Growth Countries: RU/TR/RO due to<br />
size<br />
high-growth rates and<br />
still low presence of UCG in some of these<br />
countries (e.g. Russia, Romania)<br />
Further consolidation of leadership in Poland<br />
Retail/Asset Gathering<br />
Large revenue potential and source of<br />
stable income ensuring sustainable<br />
growth<br />
Generation of liquidity for a stable<br />
funding base<br />
Consumer Finance<br />
Large revenue potential<br />
Strong demand in an environment of<br />
increasing financial wealth of households<br />
Supported by the liquidity generated by a<br />
focused strategy on retail/asset gathering<br />
23<br />
Note: (1) Excluding Poland where rebranding is expected to happen in 2009
... THROUGH THE DEVELOPMENT OF GLOBAL PLATFORMS<br />
ALONG WITH THE IMPLEMENTATION OF CROSS-BORDER<br />
PROJECTS TO LEVERAGE ON GROUP KNOW-HOW<br />
KEY PLATFORMS AND COMPETENCE<br />
CENTERS SUPPORTING CEE<br />
MAIN CROSS-BORDER CEE PROJECTS IN<br />
RETAIL AND CORPORATE SEGMENTS<br />
Markets&InvBanking Dedicated<br />
organizational model for IB activities (rollout in<br />
Poland, Turkey, Russia, Croatia)<br />
Household Financing Dedicated credit<br />
processes, risk management tools and IT<br />
solutions (rollout in Poland, Russia, Bulgaria,<br />
Romania, Ukraine)<br />
Asset management Vertically integrated<br />
model producing synergies in product design<br />
and client services (almost full coverage)<br />
Leasing Leading player in the region for<br />
new volume (almost full coverage)<br />
Global Transaction Banking cash<br />
management solutions, trade-finance<br />
development and rationalization of<br />
Correspondent Banking activities (almost full<br />
coverage)<br />
Increase efficiency and effectiveness <br />
transactions to alternative distribution<br />
channels, branch model standardization<br />
and affluent service model redesign<br />
Strong attention to customer<br />
satisfaction common customer<br />
satisfaction programs in retail and<br />
corporate, small business partnership<br />
program<br />
Dedicated service model for<br />
multinationals and cross-border clients<br />
Global Account Manager (GAM) roll-out<br />
and integration of Cross Border Business<br />
Management into GAM Model<br />
24
IN CONCLUSION …<br />
In the new scenario, value creation will come from<br />
a combination of restructuring activities in mature markets and growth<br />
opportunities in fast-growing and under-penetrated markets<br />
exploitation of commercial banking activities<br />
UniCredit is well positioned in this landscape, enjoying Europe’s #1 banking<br />
franchise and a well diversified geographical presence<br />
In this context CEE represents a significant growth engine for the Group as:<br />
it is today granting UCG a substantially higher growth than Western Europe<br />
it represents a sort of “natural hedge” against the negative impacts of the<br />
international crisis<br />
To manage at best growth in this area we have to:<br />
adopt a flexible approach which takes into account the evolution of the crisis<br />
consider the adoption of a more balanced approach between lending and<br />
deposit businesses (more selectivity in lending)<br />
optimize funding at the regional/global level<br />
be focused on risk management which is going to be a crucial capability in the<br />
next years<br />
25
MANAGING GROWTH IN A NEW LANDSCAPE<br />
1 st <strong>CFO</strong> Summit Emerging Europe & CIS<br />
Carlo Vivaldi – <strong>CFO</strong> Bank Austria<br />
Vienna, 8 October 2008
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