INTELLECTUAL CAPITAL

BanksThe new image of banking sectorThe results of value creation inCroatian banks are quite differentfrom those in economy.In spite of the fact that in2002 there was a sharp fall amongthe top 400 companies, the banksmanaged to create more than 6,7 billionvalue added, which representsa 45 % increase on previous year.Likewise their value creation efficiencyincreased by almost 20 %(Croatian average VAIC = 3,67).Moreover, the efficiency of Croatianbanking sector is significantly higherthan European average (see table).General overview of efficiencyof Croatian banks isdivided into three sections.below the average. Since all thesebanks were acquired by foreign capital,it is encouraging to compare theefficiency of their Croatian brancheswith the parent company.Privredna banka, for instance, performsalmost three times more efficientlyand Splitska banka twice asefficiently as their parent companies.Zagrebačka banka is slightlyabove, while Erste is slightly belowthe efficiency level of their parentcompanies.The most efficient bank in thesecond group, and at the same timethe most successful bank in Croatiais Štedbanka. For sixth consecutiveyear this bank has the highest efficiencylevel in the whole sector. TheTHE FIRST GROUP consists of the banks disposing with stock capital exceedingone billion kuna. Until recently the situation was relatively stable, since only two majorCroatian banks managed to exceed this limit. However, the mergers that have takenplace this year have changed the situation and it has become more interesting –therefore the results for 2002 have been presented consolidated.Rank Bank VA VAIC1 SPLITSKA BANKA mem. HVB Group 564.833.000 4,642 PRIVREDNA BANKA ZAGREB 1.536.000.000 4,183 ZAGREBAČKA BANKA 2.150.000.000 3,394 ERSTE & STEIERMARKISCHE 394.829.000 2,70In the first group the leading bankis Splitska banka, which is hardlysurprising since there was a mergerof two already successful institutions(Hypo Vereinsbank and SplitskaBanka). Privredna banka continuesto have a significant rise in valueadded and a moderate increase inefficiency, as well as Zagrebačkabanka, which in spite of this trend,still lags behind in terms of efficiency.The Erste & SteiermarkischeGroup has also fallen in ranking,which is partly what could be expectedif we consider the case offormer Riječka banka. Comparingefficiency of these banks withCroatian average in that sector, it isobvious that both the banks performmajor surprise of the year is Hrvatskapoštanska banka, which prides itselfin highest increase percentage,a real boom in terms of value addedand a significant increase in valuecreation efficiency. This only showsthat the Croatian-owned banks cankeep up with the foreign-ownedbanks. In addition to this, it provesthat there was no need for the massivesale of Croatian banks.In the second group Hypo Alpe-Adria bank fell from the first to thethird position. After three years ofdramatic growth, when value addedwas doubling every year, the bank isnow facing a much quieter period.It remains to be seen how the situationwill be developing in the future.24