Erste Bank merged Erste&Steiermarkische Banka (ESB), Erste's 42%-owned Croatian subsidiary, and Rijecka banka, its 97%-owned Croatian subsidiary, as of August 1, 2003. Erste holds 77.3% in the new ESB. In terms of total assets (EUR 2.1 bil.), EBC is now No. 3 among Croatian banks, with approximately a 9% market share, 600,000 clients, and a network of 116 branch offices. The Croatian banking system is regional in nature and EBC will be a leading bank mostly in the northwest (former Rijecka banka) and northeast (former ESB) of Croatia. Both of these regions are expected to see the most dynamic growth.
ESB is almost equally oriented toward retail and corporate clients as regards loans and deposits. Expected, neutral.
Jan Hájek