CEE Banking M&A Study 2023

CEE banks post strong performance - High interest rate environment boosts capital base for potential acquisitions

We are happy to hereby release the 6th edition of our CEE banking M&A study.

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CEE Banking M&A Study

We are happy to hereby release the 6th edition of our CEE banking M&A study

The 6th edition of Deloitte's CEE Banking M&A Study provides an analysis of the present condition of the banking industry in the region. It sheds light on the foremost challenges and opportunities confronting the sector, influencing deal-making. The study covers macroeconomic factors, banking market dynamics, transactional trends, and for the 2^nd year, offers an overview of developments within the fintech sector.

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Banking trends in CEE

Over the past few years, the growth of the CEE banking market was impeded by geopolitical tensions and adverse macroeconomic conditions. Nevertheless, the region continued to demonstrate resilience to these difficulties.

Profitability and asset quality

The profitability of the banking sector reached record level in CEE in 2023 given the high-interest rates environment, which boosted interest margins without an increase in risk costs. NPL ratios decreased despite the challenging economic environment. However, as inflation rates decline and policy rate reductions are anticipated across the region, coupled with potential increase in risk cost, profitability rates are expected to decrease in 2024.

Transaction activity

Transaction activity in the CEE banking market decreased in 2023. Nevertheless, the need for consolidation in CEE banking markets remains, and increased profitability boosting the capital base will enable potential buyers to carry out these transactions.

Fintech sector

The fintech segment of our study is evaluating regional fintech trends and compiling a list of the primary fintech companies in the CEE region. We placed an emphasis on presenting M&A trends in the segment as well.