Hungary’s MKB Bank will continue to play a decisive role in its parent bank BayernLB’s strategy in Eastern Europe; and, as it is expected to meet targets in its business plan, no significant changes to its business strategy will be necessary, MKB Bank told MTI on Monday.
MKB Bank, however, added that it would not meet its profit target for 2008 because it has to set aside higher than expected reserves. Though BayernLB is scaling back its activities, this will affect mainly Asia, not Central and Eastern Europe. BayernLB continues to see serious growth potential in the region.
Acting as the flagship for BayernLB’s expansion in Eastern Europe, MKB Bank acquired two banks in 2006: Unionbank, which has a 1.5% share of the Bulgarian market, and Romexterra, which control’s 0.8% of Romania’s market. MKB Bank said earlier it aims to get a 4-5% share of markets in the two countries in the mid-term.
In the coming weeks, MKB Bank will take steps to rationalize costs in 2009 as part of group-level efficiency improvement measures at BayernLB set to run until 2013. As the measures are likely to affect payroll costs, MKB has capped its staff number at the current level. (MTI-Eco)