By Bojana Sutvic
Karlheinz Dobnigg, CEO of Raiffeisen bank in Bosnia and Herzegovina, said the bank has retained its business stability and has kept strong market position in this year, despite challenging market conditions.
In an interview with Bosnia Today, CEO of the most successful bank in BiH stressed that the bank will continue its lending activities in 2016.
“For 2016 we expect to see positive dynamics which should lead to real GDP growth rate of 3.0% marking the strongest economic gain of B&H since financial crisis back in 2009,” he said.
BT: Although the year has not ended yet, could you tell us what are the business results of Raiffeisen bank in Bosnia and Herzegovina in 2015? Are you satisfied with the results?
– Although we have been operating in challenging market conditions, I am glad that we have succeeded to retain our business stability and keep our strong market position.
We truly believe in our business model always focused on the client and his needs. In 2015, we have been active in lending of both private individuals and corporate clients.
During the year, we additionally improved our card offer and introduced cards for contactless payments. Also, we are the first bank in the market which introduced POS devices for acquiring these contactless payment cards.
BT: What are the plans of Raiffeisen bank for 2016?
– Our focus will still be on raising service quality, but also we will continue our lending activities given the fact that our long-term strategic orientation is to be a partner bank and fair financial institution taking care of the financial needs of our clients.
We will actively work on our diversified and comprehensive offer to provide in one place all that our clients expect from their bank.
We always strive to adjust to new trends and recognise future in digital banking, but this does not mean that we will neglect traditional banking which enables the first contact of the client with the bank.
Of course, we will continue implementing our sustainability strategy as the key component of our business policy.
BT: Your bank won several significant awards this year, and one of them is The Banker’s “Bank of the Year in B&H” award. What is the key of your success in B&H?
– Business results derive from our continuous adjustment to the market conditions and I am happy that we have ended the year with yet another significant award in the banking industry.
In addition to “The Banker”, this year we also won awards from other international recognised financial magazines – “Euromoney” and “Global Finance”.
This additionally proves soundness our business model, but also gives us additional motivation to be even better in future.
All this would not be possible without our clients whom I thank for placing their trust in us, but also I would like to express my gratitude to all the bank’s employees who are truly committed in achieving our common business goals.
BT: Authorities in B&H claim that there are positive economic figures but standard improvement is still not felt. In your opinion, can we expect stronger growth of Bosnian economy in the upcoming year?
– Improvement of the living standard is the final outcome of the positive economic dynamics and economic growth. However, we should bear in mind the necessity of having continuous growth in economic dynamics for certain period of time in order to feel economic growth effects through improved living standard of citizens.
Registered economic growth of B&H measured by real GDP, of 1% in 2014 and 2% in 2015, lays strong foundations for improvement of B&H citizen living standard if we see continuation of such positive economic dynamics in period ahead.
For 2016 we expect to see such positive dynamics which should lead to real GDP growth rate of 3.0% marking the strongest economic gain of B&H since financial crisis back in 2009.
Along with traditional drivers of B&H economy such as export and private consumption, the anticipated economic growth will also be boosted by the public and private investments which imply increase of employment and stronger purchasing power of B&H citizens.
Nevertheless, materialization of these positive expectations will largely depend on the political stability in the country and implementation of necessary economic reforms.
BT: For the first nine months of this year, corporate loans dropped slightly, and loans to governments rose – is it possible that rise in government lending will mean less banks’ money for economy?
– Increase of credit placements by B&H banks towards the Public sector in previous period, does not represent any threat for the Corporate-lending capacity of B&H banking sector.
Modest decline of corporate loans is mostly outcome of unfavourable and challenging macroeconomic environment, coloured by lack of investments and political instability.
Furthermore, banks in B&H were also forced to consolidate their balance sheets, “cleaning” them from the non-performing loans, which were much higher in corporate segment compared to other sectors, such as retail or public sector.
Nevertheless, the corporate loans category still represents the largest category within the total loan structure with positive outlook for further expansion in long term period.