CEE Banking M&A Study 2022

Navigating uncertainty – CEE banking market demonstrates resilience in the presence of macroeconomic instability

We are happy to hereby release the 5th edition of our CEE banking M&A study.

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CEE Banking M&A Study

We are happy to hereby release the 5th edition of our CEE banking M&A study

The 5th edition of the CEE Banking M&A Study offers a comprehensive overview of the current state of the banking sector in the region, highlighting the most pressing challenges and opportunities facing the industry which drive deal activity. The study encompasses macro and banking market dynamics, transaction activity, and a new addition to our study is an in-depth analysis of the Fintech sector, along with a detailed analysis of the performance of individual CEE countries.

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Banking trends in CEE

Despite the numerous challenges in recent times, including the COVID-19 pandemic, a geopolitical tension, and the current high inflationary environment, the sector has demonstrated remarkable resilience and the consolidated balance sheet of banks in the region continued to grow.

Profitability and asset quality

The profitability of the banking sector has improved, as the expected significant deterioration in asset quality related to COVID-19 did not materialize. However, the future remains uncertain, and it is challenging to predict the long-term impact of the current high inflationary and interest rate environment on asset quality and non-performing loan levels.

Transaction activity

The transaction activity in the banking market slowed slightly in 2022, however this uncertain environment, might make it difficult for banks with lower market share, profitability and weaker capital base to compete, necessitating transactions in the future.

Fintech sector

The Fintech section of our study is assessing the regional Fintech trends and listing the CEE region’s main Fintech companies as in line with our clients’ feedback they have become an inevitably significant player within the financial ecosystem and a plausible acquisition target for banking institutions.