Press Centre

12/10/2017 - UniCredit Bank wants to be the primary bank for regional SME businesses

  • From October, an independent sales network with separate management only for regional businesses (SME)
  • 9 regional centres in Slovakia - for priority services to regional businesses
  • In financing for businesses, SME is a strategic, rapidly growing segment with great potential

 

From October, UniCredit Bank launches an independent sales network, managed as a separate segment, for priority services to regional businesses (SME) in Slovakia. It aims at provision of services to businesses with annual turnovers of up to EUR 10 million.

We have built 9 regional centres with sales priorities individually adjusted to SME. For our clients, it means that when they come to the client centre, the services are adjusted to the size of these businesses and their specific needs. Regional businesses (SME) now have an independent network, with separate management and specialised managers. On the market, these companies often belong to different segments or they have to compete with large companies,” says Elena Rokusová, Head of SME SK.

“In this regard, we use the proven expertise of our Bank in western Europe, where we have already successfully implemented this model,” adds Rokusová.

Although large, often multinational companies are more in public view and, in particular, they are often given credit for the growth of the economy, smaller local business are an equally important part of the economy.

Companies with fewer than 250 employees create more than half of the Slovak GDP. Large and small businesses often coexist in the economy, they would not survive alone. Large companies create environment and job opportunities for smaller companies, while small companies are usually more flexible, more driven and often helping to accelerate innovative progress.

Europe has been struggling with the economic crisis and its consequences in the last decade. It hit large companies in the economy as well as small businesses. Small businesses often have less diversified sales, therefore they have often struggled, some with success and others less so.

It seems, however, that European economies, including the Slovak one, have already definitely bounced off the bottom and found their way out of the crisis. Economic recovery first appeared in large companies. Their better condition has also translated, with a slight delay, into the segment of small and medium-sized enterprises.

 The cyclical recovery should continue in the coming years and at this stage of the economic cycle, it is likely that economic growth would shift increasingly towards smaller, more flexible and innovative businesses.

 

UniCredit Bank, too, sees the potential of the SME segment, which, unlike large corporations, is often dependent on domestic financing. SME is becoming a key segment in corporate banking, which is dynamically growing, resulting in new needs of such businesses in the area of ​​banking services. Therefore, UniCredit Bank has designed the structure and organisation to build an independent segment for regional SME businesses, where all banking services are tailored to their needs only.

 

Organisational management at UniCredit Bank:

From 1 October 2017, the regional businesses - SME Segment (companies with annual turnovers of up to EUR 10 million) - are managed by Ms. Elena Rokusová. The segment of corporate clients (over EUR 10 million) is managed by Jaroslav Habo.

 

Elena Rokusová, Head of SME SK at UniCredit Bank - is no newcomer in banking. After graduating from the University of Economics in International Business, she began her career at HVB, where she occupied several positions in the field of client service. Subsequently, she started working at UniCredit Bank. In recent years, she has managed the area of financing of regional businesses.  (photo attached)

 

Jaroslav Habo, Head of Corporate Clients Slovakia at UniCredit Bank - he began his career in banking nearly 20 years ago. From 2002, he started working at HVB Bank as a project financing specialist. Later, he occupied several positions within UniCredit Bank in the sectors of large corporates and real estate. This year, he became a head of Corporate Clients Slovakia. (photo attached)

 

 

 

Contact details:   Zuzana Ďuďáková, Press Spokesperson of UniCredit Bank Czech Republic and Slovakia

                        Email: zuzana.dudakova@unicreditgroup.sk

                        Tel. No.: +421 2 4950 2303

20/09/2017 - UniCredit ranked number one in 11 countries by Euromoney Cash Management Survey 2017

UniCredit has been ranked number one in Cash Management in 11 countries by the Euromoney Cash Management Survey 2017. The bank demonstrated its dominance and market leadership in Europe region with first-place rankings in Austria, Bosnia & Herzegovina, Bulgaria, Croatia, Czech Republic, Hungary, Italy, Romania, Serbia, Slovakia, and Turkey.


The 2017 Euromoney Cash Management Survey is the 16th annual survey of the leading providers of cash management products and services across the world. With responses this year from over 25,000 businesses and 2,500 financial institutions, the survey is the most authoritative and comprehensive ranking in the cash management industry.

“We are delighted with the results of this year’s survey” says Gianfranco Bisagni, UniCredit Co-Head of Corporate & Investment Banking. “Cash management is a core service for our clients, and this award demonstrates the excellence of our comprehensive product suite, designed for corporates of all size, from small-caps to large multinationals. To be recognised by this survey – which is based on their feedback – is a fantastic sign for us and a validation of what we strive to achieve”.


This year’s achievements represent for UniCredit a considerable jump on the previous year –
rising from 5 number-one rankings to 11.

 

About UniCredit
UniCredit is a simple, successful Pan European Commercial Bank, with a fully plugged in CIB,
delivering a unique Western, Central and Eastern European network to its extensive client franchise:
25 million clients. UniCredit offers local expertise and international reach, supporting its clients
globally, providing them with unparalleled access to leading banks in its 14 core markets as well as in
other 18 countries worldwide. UniCredit European banking network includes Italy, Germany, Austria,
Bosnia and Herzegovina, Bulgaria, Croatia, Czech Republic, Hungary, Romania, Russia, Serbia,
Slovakia, Slovenia and Turkey.

18/01/2017 - #InvestEU: EIF and UniCredit agreement to provide EUR 160 million for innovative SMEs

The European Investment Fund (EIF) and UniCredit have signed an InnovFin SME guarantee agreement to enhance access to finance for innovative small and medium-sized enterprises (SMEs) and mid-caps in eight countries. This transaction benefits from the support of Horizon 2020, the EU's Framework Programme for Research and Innovation, and the European Fund for Strategic Investments (EFSI), the heart of the Investment Plan for Europe.

This agreement will allow UniCredit, via its banks, to offer additional financing worth EUR 160 million to innovative companies in Bosnia and Herzegovina, Bulgaria, Croatia, Czech Republic, Slovakia, Hungary, Romania and Serbia.

The banks in Bosnia and Herzegovina and in Serbia will benefit from the support of a guarantee provided by EIF and backed under Horizon 2020, the EU's Research and Innovation programme, while the guarantee agreements with the banks in Bulgaria, Croatia, Czech Republic, Slovakia, Hungary and Romania will be backed by the Investment Plan for Europe.

European Commission Vice-President Jyrki Katainen, responsible for Jobs, Growth, Investment and Competitiveness, said: “This agreement is excellent news for innovative small companies across these eight countries. The additional EUR 160 million in financing that will be made available from this agreement demonstrates that the Investment Plan is playing a crucial role in achieving the Commission's objective of providing the support that will allow SMEs to create jobs, innovate and grow.”

EIF Chief Executive Pier Luigi Gilibert added: “This umbrella SME guarantee agreement will be instrumental in helping countries in the Western Balkans and Eastern European regions to foster innovation and entrepreneurship. I am confident that UniCredit’s network of banks in these eight countries will target high-growth potential companies, which will be able to translate the additional financing received into growth and job creation.”

Carlo Vivaldi, Head of CEE Division of UniCredit, said: “We are strongly committed in supporting SMEs companies in Central and Eastern Europe (CEE). Thanks to the new umbrella facility and our extensive network we can further facilitate the development of innovative SMEs across different countries where our clients will have easier access to finance and will benefit of better pricing.”

The transaction reflects the EU's commitment to rapidly launch concrete initiatives aiming at accelerating lending and guarantee transactions capable of boosting jobs and growth in the EU.

 

About EIF

The European Investment Fund (EIF) is part of the European Investment Bank Group. Its central mission is to support Europe's micro, small and medium-sized businesses (SMEs) by helping them to access finance. EIF designs and develops venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. In this role, EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment. More information on EIF's work under EFSI is available here.

About UniCredit

UniCredit is a strong Pan-European Group with a simple commercial banking model and  a fully plugged in Corporate & Investment Bank, delivering its unique Western, Central and Eastern European network to its extensive 25 million strong client franchise.
UniCredit  offers local expertise as well as international reach and accompanies and supports its clients globally, providing clients with unparalleled access to leading banks in its 14 core markets as well as an another 19 countries worldwide. UniCredit  European banking network includes of Italy, Germany, Austria, Bosnia and Herzegovina, Bulgaria, Croatia, Czech Republic, Hungary, Romania, Russia, Slovakia, Slovenia, Serbia, Turkey.

About the Investment Plan for Europe

The Investment Plan focuses on strengthening European investments to create jobs and growth. It does so by making smarter use of new and existing financial resources, removing obstacles to investment, providing visibility and technical assistance to investment projects. The Investment Plan is already showing results. The projects and agreements approved for financing under EFSI so far are expected to mobilise over EUR 164 billion in total investments across 28 Member States and to support more than 388 000 SMEs. On 14 September 2016, the European Commission proposed extending EFSI by increasing its firepower and duration as well as reinforcing its strengths. Find the latest EFSI figures by sector and by country here. For more info, see the FAQs.

 

About InnovFin

The InnovFin SME Guarantee Facility is established under the “EU InnovFin Finance for Innovators” initiative backed by Horizon 2020. It provides guarantees and counter-guarantees on debt financing of between EUR 25,000 and EUR 7.5 million in order to improve access to loan finance for innovative small and medium-sized enterprises and small mid-caps (up to 499 employees). The facility is managed by EIF, and is rolled out through financial intermediaries – banks and other financial institutions – in EU Member States and Associated Countries. Under this facility, financial intermediaries are guaranteed by EIF against a proportion of their losses incurred on the debt financing covered under the facility.

 

 

17/01/2017 - UniCredit crowned Best in Europe by Euromoney Trade Finance Survey 2017

UniCredit has been named “Best Trade Finance Provider” in both Central and Eastern Europe (CEE) and in Western Europe by the Euromoney Trade Finance Survey 2017.

The survey, which received more than 4,000 responses from businesses using trade finance, recognised UniCredit’s excellence in trade finance services.  The bank’s credentials in trade finance are founded on its deep product expertise and  its unparalleled market knowledge in its core European markets, which is supplemented by comprehensive coverage through an extensive international network of branches, representative offices and 4,000 correspondent banks.

UniCredit has made significant investments in the trade finance sector by developing innovative platforms for trade finance, supply chain finance and BPO execution. The bank is part of a number of collaborative blockchain initiatives, including the R3 bank consortium, and has developed proofs of concept for two blockchain-based trade finance solutions.

Trade finance is a pillar of UniCredit’s multi-year plan and strategic to its mission as a simple pan-European bank delivering a unique western, central and eastern European network to its extensive client franchise with a fully plugged in Corporate & Investment Banking Division.

Claudio Camozzo and Jan Kupfer, Global Co-Heads of Global Transaction Banking (GTB) at UniCredit, said: “We are delighted to have been named Best Trade Finance Provider in both Central and Eastern Europe and in Western Europe by the Euromoney Trade Finance Survey 2017. This award stands as testament to our innovation in trade finance and our ability to connect clients around the world with a comprehensive product suite which serves clients ranging from small caps to large international corporates.”

The bank also swept the board in the European country awards being named “Best Domestic Trade Finance Provider” in Bosnia and Herzegovina, Bulgaria, Croatia, Hungary, Poland, Romania, Serbia and Turkey.

 Paolo Spada, Central and Eastern Europe GTB Head at UniCredit, stated “It is an honour to have received the award for Best Trade Finance Provider in Central and Eastern Europe for the fourth consecutive year. We are proud of our unrivalled presence across different countries.  Our leading regional presence, combined with our best-in-class technology and product expertise, puts us in an excellent position to provide our clients with the very highest level of service.”

 

About UniCredit

UniCredit is a leading European commercial bank operating in 17 countries, with over 143,000 employees, over 7,500 branches and an international network that spans 50 markets.

Our strategic position in Western and Central and Eastern Europe enables us to command one of highest market shares in the region.

While our brand is recognisable all over Europe, we have preserved the highly valuable local brands of banks that we acquired to form our Group.

Milan, 17 January  2017

Contacts:

Media Relations Tel. +39 02 88623569; e-mail: MediaRelations@unicredit.eu

 

20.12.2016 - Pay with your thumb! UniCredit introduces fingerprint payments in Smart Banking

Santa Claus does not have to bring gifts only on Christmas Eve The red and white logo of UniCredit is no coincidence - the bank has Christmas presents for you before the Christmas Eve this year. You do not have a tree? It doesn’t matter, all you need is a smartphone. As an early present, UniCredit Bank introduces a possibility of making payments in a quick, convenient, and secure manner in the Smart Banking mobile application using only your fingerprint.

Already in May of last year, UniCredit Bank was the first bank in the Czech market to introduce the fingerprint technology in smartphones in its mobile banking. Owing to their fingerprint, clients can log into Smart Banking as well as the Online Banking key.. Now, clients may use it even more effectively – for faster and safer signing of payments.

 The most important thing in every relationship is to truly listen. Here, at UniCredit Bank, we have made the wishes of our clients come true. The outcome is a unique innovation allowing them to confirm payments up to CZK 5,000 in the mobile Smart Banking by using only a fingerprint,says Carmelo Minardi, Director of Multi-Channel Banking at UniCredit Bank. Transactions over EUR 200 will be signed by PIN, as at present.

UniCredit Bank’s Smart Banking makes full use of the state-of-the-art technology of smartphones. Besides simplifying the activation of the application via SMS, the feature of account detail sharing or automatic setting of the payment date, we have made the last update of the mobile Smart Banking more comfortable and safer. 

Fingerprint payments bring clients extra comfort and speed when making their transactions from a mobile phone. To send money using a fingerprint is just as convenient and fast as to pay for your shopping with a contactless card at the cash-desk with a beep,” adds Radek Jirka, Manager of Direct Banking at UniCredit Bank.

 In order to secure personal data protection, Smart Banking uses the fingerprint technology in the user’s smartphone. Fingerprints are neither saved nor sent to the bank’s server. Following the next update of the application, UniCredit Bank’s Smart Banking users with smartphones where the fingerprint feature is enabled may use it.

09/12/2016 - UniCredit Bank to help children in need with a financial gift on Christmas

UniCredit Bank donates EUR 12,500 to a project of the Deťom s rakovinou non-profit organisation, created by the parents of these sick children. Through its philanthropic activities, UniCredit Bank has been supporting children, communities at risk and the business environment in Slovakia.

 

We want to take the tradition of Christmas giving a step further. We want to make children’s faces beaming with smiles....to bring smiles to children's faces. That is why we donate EUR 12,500 to little oncology patients.   If more of us do the same, we can make a small gift turn into a great progress. Our business partners deem this decision to be very positive and they support us,” speaks Miroslav Štrokendl, Director of Foreign Branch at UniCredit Bank in Slovakia. 

 

Before Christmas, the bank is going to support children with oncological disease. with cancer. with an amount of EUR 12,500. UniCredit Bank is a strong and successful bank, supporting Slovak communities and the environment where it operates in the long run. It helps useful and philanthropic projects within its powers and capacity, mainly focusing on those that help children live a full life.

 

In 2016, using the possibility to donate 1.5% of tax, the bank donated a total of EUR 56,823 to several charity organisations that are helping children.

Such organisations include, for instance, the Návrat association and Hospic Plamienok. The bank also supports the Svetielko nádeje civic association as well as children growing up in the developing third-world countries within the Magna Children at Risk humanitarian organisation.

 

Moreover, the bank also supports social entrepreneurship within the “Can Fish Fly?” project.  Together with Provida Foundation, it granted an amount of EUR 69 thousand and expert counselling focused on the development and implementation of business plans to four social start-ups this year. The most successful project of this year’s programme has been the SARAHS – On the Wave of Knowledge project, thanks to which interested people and primary school pupils can learn how people used to live in harmony with nature. Projects Analytical Incubator (VIA IURIS), Darujme.sk (Centre for Philanthropy), and Better Geography have also been awarded.

 

Contact details:  

Zuzana Ďuďáková, Press Spokesperson of UniCredit Bank Czech Republic and Slovakia
E-mail: zuzana.dudakova@unicreditgroup.sk
Tel. No.: +421 2 4950 2303

24/11/2016 - UniCredit Bank obtains the Account of the Year 2016 award

UniCredit Bank obtains the Account of the Year 2016 award

U Konto by UniCredit Bank is the best current account in the Czech Republic. In a prestigious competition of banking products entitled Fincentrum Bank of the Year 2016, UniCredit Bank ranked first in the Account of the Year category. Experts have awarded its unique current account, which offers a whole range of services and withdrawals from all ATMs worldwide free of charge. Moreover, the bank offers a ten-year guarantee of the account conditions. Since its creation in 2014, the U Konto by UniCredit Bank has been opened by more than 315 thousand clients of the bank.

"We have been the first bank in the Czech and Slovak market to introduce the fee-free account in April 2014. We aimed to meet not only the clients’ requirements and expectations as regards modern, innovative and user-friendly current accounts, we also wanted to positively surprise our clients. That is why the U Konto provides not only a whole range of services free of charge, including online transactions and mobile banking, but also withdrawals from ATMs worldwide. Moreover, clients are able to conveniently use all these benefits in the long term, owing to the ten-year guarantee of conditions," says Giovanni Guidi, Head of Retail and Private Banking at UniCredit Bank.

Clients can open the fee-free account at branches at UniCredit Bank or UniCredit Bank Expres, partners´ corners or fully online. Subject to an active use of the U Konto, clients can use the account completely free of charge. All you need to do is send, let’s say, your pay to this account and generate a monthly credit turnover of EUR 400. For young people up to 26 years of age, the U Konto is free of charge without any conditions. Within the U Konto, clients obtain a free-of-charge account keeping, debit payment card, electronic transactions, and access to Online and Smart Banking. Moreover, with the U Konto, clients do not have to waste their time by looking for an ATM and they can withdraw cash free of charge at any ATM at home or worldwide with no limitations. In the U Konto TANDEM option, clients can meet the condition of active account use in pairs, getting two mutually independent accounts.

Both existing and new clients who currently open the favourable free-of-charge U Konto in the bank get the opportunity to buy a powerful and elegant Huawei P9 lite Dual SIM smartphone under favourable conditions. Owing to the pre-approved credit card, they can get the smartphone for only EUR 204 a month for 12 months.

24/11/2016 - UniCredit Bank joins Black Friday again, with up to 20 % discounts on loans and other discounts for two whole weeks

UniCredit Bank has been the first bank on the Slovak market to join the Black Friday sales holiday last year. This year, too, it has prepared favourable offers for whole two weeks. Clients can obtain consumer Presto loans with up to 20% discounts and get a smartphone free of charge. Further, they can get a 50% discount on joining fees of investment products or a Huawei smartphone at a favourable price for their U Konto account. All they need to do is visit any UniCredit Bank branch from 24 November until 9 December to ask for the conditions of the campaign, or visit the Banks website.

 “Slovak people love discounts and our last years Black Friday discounts were hugely successful, attracting a great number of clients to our branches and e-shop. This year, too, we would like to enable all interested people to take out everything they need in a convenient and comfortable manner from loans and investments to current accounts. That is why we have extended the sales holiday for whole two weeks,” says Giovanni Guidi, Head of Retail Banking at UniCredit Bank.

Clients get up to 20% discounts on the consumer PRESTO Loan interest rates. During the Black Friday event, interest rates start from 3.9% p.a. for consolidated loans. Moreover, subject to compliance with the set conditions, clients can get a Huawei P9 lite Dual SIM smartphone to their loan completely free of charge.

If clients open the U Konto during Black Friday, they get not only favourable conditions and, subject to compliance with the conditions, also withdrawals from all ATMs worldwide free of charge but also an opportunity to purchase the mentioned Huawei smartphone at a more favourable price than before, at only EUR 204.

Both new and existing clients can finance the purchase of the smartphone by loan through a UniCredit Bank credit card, where one of the alternatives for repayment can be 12 monthly instalments of EUR 17.

Now, this is the ideal time for those who plan to invest on a regular basis. During Black Friday, they have an opportunity to get a 50% discount on joining fees of both recurring and one-off investment products of UniCredit Bank for the whole two weeks.

10/10/2016 - UniCredit and PROVIDA Foundation supported four social start-ups connecting business and charity

Bratislava, 10th OctoberThis year, four social start-ups have kicked off or improved their business under the “Can Fish Fly?” programme organized by PROVIDA Foundation in cooperation with UniCredit Bank and UniCredit Foundation. In total, they have obtained EUR 64 thousand for support of social entrepreneurship, as well as expert consulting as to how implement and develop further their business plan. In internal vote, UniCredit Bank employees granted an additional EUR 5,000 to the winning project.

 

The most successful project of this year’s programme has been the SARAHS – On the Wave of Knowledge project, thanks to which interested people and primary school pupils can learn how people used to live in harmony with nature. The project has received a grant of EUR 16,000 as well as additional support of EUR 5,000 directly from UniCredit Bank employees. The project for establishment of an eco-centre has won mainly owing to its quality team with a strong vision for further development and possibilities of how to replicate it to other Slovak schools.

 

“The aim of our project was to create an environmental background in the form of an eco-classroom, with adjacent premises and possibilities of adding a new dimension to educational trips. The fact that after discussion we have moved from the initial idea of making trips to create a small profit-generating business centre from the eco-centre and school environment was crucial for us. This is important not only for the school but also for the entire community,” Ján Salanci, Director of SARAHS, sums it up.

 

Projects Analytical Incubator (VIA IURIS), Darujme.sk (Centre for Philanthropy), and Better Geography have also been awarded. Each of them received a grant of EUR 16,000. They were also able to use a non-financial support.

“It is a combination of financial support and quality expert consulting that stands behind the success of the “Can Fish Fly?” programme. Grants are always implemented in the context of strategic development of the organisation and directed towards strengthening the long-term financial and programming sustainability of the organisation while maximising its social benefit,” Peter Mészáros, the programme’s expert sponsor, identifies the primary objective of the programme.

 

From the financial support of UniCredit Group, PROVIDA Foundation provided more than 160 hours of business consulting, focusing mainly on development strategy, financial management, marketing, and sale, for the portfolio of programming organisations.

 

“In our bank, we appreciate the approach of people who are not afraid to enrich the society with new ideas or fight for its better functioning. Innovations are constantly moving all of us forward. We are pleased that our bank, as one of the leading innovators of the banking market, can make a contribution even outside the world of finance,” explains Zuzana Ďuďáková, Press Spokesperson of UniCredit Bank.

 

The programme is carried out by PROVIDA Foundation in cooperation with  UniCredit Foundation and UniCredit Bank, which support the development of social entrepreneurship in another 16 countries of UniCredit Group besides Slovakia.

 

“Every year, the number of social start-ups is rising. Besides funds, we share managerial experience with our social entrepreneurs, because experience is the most valuable asset when developing any kind of business. We are pleased to maintain this trend also in the Can Fish Fly? programme, under which we have supported many excellent business stories even this year,” says Maurizio Carrara, Chairman of UniCredit Foundation.

 

Please, find below the description of all four projects; each of them has an interesting story. If any of these stories catches your attention and you would like to work with it, please contact us. We will provide you with the required contact information and other information.

 

Contact details:  

Zuzana Ďuďáková, Press Spokesperson of UniCredit Bank Czech Republic and Slovakia

Email: zuzana.dudakova@unicreditgroup.sk

Tel. No.: +421 2 4950 2303

Please, find the following stories below to work with:

Story one: Speak the language of nature

To learn directly in the open air how was the life on a farm once, how flour was milled, bread baked, and how to take care of farmed animals, to explain the importance of bees, or show how to grow herbs. Today, everyone regardless of their age can experience it owing to the On the wave of knowledge project. Thanks to the “Can Fish Fly?” grant programme and the newly built eco-centre, the capacity of eco-trips has tripled, the project has a chance of being self-financed in the short term, employ 2 animators, and grow.

Sarahs civic association project – On the wave of knowledge – has received a grant of EUR 16,000 and an extra EUR 5,000 because of winning the vote of UniCredit Bank employees.

 

Story two: For better education

Innovative education materials enhance the quality of education of geography at schools. The Better Geography project attempts to modify the content and forms of the educational system. Owing to unusual and research-oriented activities, it helps one hundred Slovak schools develop critical thinking ability, information processing, and cooperation of their students. Thanks to the “Can Fish Fly?” grant programme, more than 150 Slovak schools teach today using the Better Geography methodology, which is more than double than in the last year.

The Better Geography project has received a grant of EUR 16,000.

 

Story three: If you want to donate, make donations for particular donors

Common people like to support a good cause, too. All you have to do is allow them to do so. The Daruj.sk project aims at “user-friendly” donating. Also owing to the support of UniCredit Foundation, more than 107 organisations have already obtained donations worth nearly one million euros. Thanks to the “Can Fish Fly?” grant programme, the organisation has doubled its turnover, becoming sustainable with the possibility of financing its further growth.

Centre for Philanthropy project – Darujme.sk – has received a grant of EUR 16,000.

 

Story four: On the side of justice

Individuals, communities, companies and, ultimately, the entire society are able to move forward and change for the better through better laws, higher quality courts, and more predictable legal system. It is the more predictable legal system for which VIA IURIS foundation is fighting on behalf of both citizens and entrepreneurs. Owing to the sale of analyses and its Analytical Incubator, the foundation is trying to obtain finance for its operation. Thanks to the “Can Fish Fly?” grant programme, the foundation has improved its marketing and sale, and it is ready to offer its commercial services in both the Slovak and foreign market.

VIA IURIS project – Analytical Incubator – has received a grant of EUR 16,000.

 

Notes for editors:  

 

PROVIDA Foundation

PROVIDA is an incubation platform and an investor in social enterprise projects. They support and implement projects which introduce innovative solutions to help marginalised children and young people, as well as disadvantaged and disabled people. They also support social enterprises and develop communities through art. They run their own projects and they help and financially support implementation of projects of other non-profit organisations. PROVIDA connects activities of the Pro Vida civic association (2006) and PROVIDA Foundation (2010)

 

UniCredit Bank Czech Republic and Slovakia

UniCredit Bank Czech Republic and Slovakia ranks among leading financial institutions in the Czech Republic and Slovakia, providing a wide range of quality products and services for retail and private clients, including small and medium-sized enterprises as well as large corporates. It is one of the strongest banks in the market of project, structured, and syndicated finance. The Bank has also built a particularly strong position in acquisition finance, while ranking first in commercial real estate finance.

UniCredit Foundation is a corporate foundation, established in 2003 with the aim to contribute to the development of solidarity and philanthropy in communities and geographic areas where UniCredit Group is present (17 countries in Europe and Central Asia). Through provision of funds and managerial knowledge, UniCredit Foundation fosters both projects with wide social impact and activities carried out by local non-profit organisations. The implementation of projects enables employees to make a contribution within the cultural inclusion of the Bank. Over the last 10 years, the Foundation has implemented more than 400 projects and initiatives worth a total of more than EUR 100 million invested locally (www.unicreditfoundation.org)

 

Contact details:  

Zuzana Ďuďáková, Press Spokesperson of UniCredit Bank Czech Republic and Slovakia

Email: zuzana.dudakova@unicreditgroup.sk

Tel. No.: +421 2 4950 2303

26/09/2016 - Want more from your bank. Get a Huawei smartphone at an advantageous price with the U Konto account or PRESTO Loan

Want more from your bank. Get a Huawei smartphone at an advantageous price with the U Konto account or PRESTO Loan from UniCredit Bank

Do you want to get a powerful and elegant smartphone for free or with a considerable discount right from your bank? It’s no problem with UniCredit Bank. Owing to the favourable PRESTO Loan, you can now get a Huawei smartphone entirely free of charge. At the same time, we are also extending the already long list of benefits of the free-of-charge U Konto account, with which you can get the mentioned smartphone with a significant discount. The UniCredit Bank autumn campaign focused on the benefits of both products has kicked off.

 

In the autumn, all clients who take out a consumer PRESTO Loan receive a powerful and elegant Huawei P9 lite Dual SIM smartphone from UniCredit Bank as a gift*. The only condition is a minimum amount of loan of EUR 7,200 thousand and duration of the repayment period of at least 72 months. The loan may be used for anything, or merge or transfer your existing loans to UniCredit Bank and save, let’s say, on a monthly instalment. You can also save money by taking out the insurance of the ability to repay and by actively using your account in UniCredit Bank.

 

Moreover, existing or new clients who open the advantageous free-of-charge U Konto account in the bank have the opportunity to buy the mentioned smartphone at favourable EUR 228, saving around one-fifth of the current market price. At the same time, they can repay it on an instalment basis through a pre-paid credit card, which they easily get to their U Konto account.

 

Almost 300 thousand clients have already been using the benefits of the popular U Konto account, such as account keeping, online transactions or withdrawals from any ATM all over the world entirely free of charge, subject to an active use of the account. All you need to have, let’s say, your pay sent to this account and generate a monthly credit turnover of EUR 400.

 

Within the campaign, there have been TV spots on TV Markíza in Slovakia and on TV Nova and TV Prima and their related channels in the Czech Republic from 19 September. In the online environment, the focus will be mainly on display banner ads on the most popular servers - Sme.sk, Atlas.sk, Aktuality.sk or Centrum.sk in Slovakia and on iDnes.cz, Seznam.cz, Blesk.cz, and Denik.cz in the Czech Republic. A part of the campaign will also be on social networks.

04/08/2016 - UniCredit Bank Czech Republic and Slovakia achieved excellent business results in the first half of 2016

UniCredit Bank Czech Republic and Slovakia achieved excellent business results in the first half of 2016. Consolidated net profit grew by 11.9% yoy
to CZK 3.5 billion

  • Consolidated net profit went up by 11.9% yoy to CZK 3.5 billion compared to half-year results of the financial group UniCredit Bank Czech Republic and Slovakia reported in the last year.
  • Operating income increased by 6.9% yoy.
  • Loans to clients rose by 4.9% compared to 30 June 2015.
  • Deposits from clients increased by 11.8% yoy.
  • Total assets grew by 12.6% yoy.
  • Mortgage loan and consumer loan from UniCredit Bank succeeded in the Zlatá koruna (Golden Crown) competition; for mobile Smart Banking won second place in the Novelty of the Year category.
  • Both UniCredit Leasing and UniCredit Factoring celebrated 25 years on the Czech market.

The after-tax consolidated profit of UniCredit Bank Czech Republic and Slovakia increased from CZK 3,095 million (as of 30 June 2015) to CZK 3,463 million (as of 30 June 2016).

Comments of Jiří Kunert, CEO and Chairman of the Board of Directors of UniCredit Bank Czech Republic and Slovakia:

"Despite the increased costs to the Resolution Fund and the Deposit Insurance Fund, we have achieved a twelve percent growth in consolidated net profit. This major increase in net profit was due to both the steadily increasing volumes of retail and corporate loans as well as the return on the international transaction acquisition of Visa Europe, where our bank had a shareholding. We manage to successfully implement the set strategy across all segments and we are creating a strong position for further growth on both markets. UniCredit Bank enjoys high levels of trust among its clients, in the times when banks all around Europe are under pressure from increasing regulation, maintaining profitability or events such as Brexit."

FINANCIAL INDICATORS OF UniCredit Bank Czech Republic and Slovakia – 1ST HALF-YEAR 2016 

 Consolidated Data

1H 2016

1H 2015

Change

Profit and Loss Statement (CZK million)

 

 

 

Net interest and similar income

5,078

5,200

-2.3 %

Net fee and commission income

1,919

1,956

-1.9 %

Administrative expenses

4,151

3,646

+13.9 %

Credit risk cost

542

762

-28.9 %

Profit before income tax

4,360

3,884

+12.3 %

Net profit after tax

3,463

3,095

+11.9 %

Balance Sheet (CZK million)

 

 

 

Total assets 

632,779

561,766

+12.6 %

Receivables from clients  

373,221

355,880

+4.9 %

Deposits from clients 

372,156

333,008

+11.8 %

Payables from debt securities

63,299

67,811

-6.7 %

Shareholder's issued capital 

64,849

57,777

+12.2 %

COMMENTS TO THE ATTAINED RESULTS

Items of Profit and Loss Statement

“Low interest rates and growing competition on the banking market result in a slight decrease of net interest income and net income from fees and commissions. Growing regulatory requirements have further impact on the growth of administrative expenses of banks, including our Bank. However, it is thanks to our prudent strategy and positive macro environment that we manage to continually reduce credit risk cost which fell by 28.9% yoy,” said Mr. Gregor Hofstaetter-Pobst, CFO of UniCredit Bank.

Balance Sheet

  • In the retail banking, the lending segment grew considerably by 13.6% thanks to a high growth of mortgage loans (14.3%), as well as of consumer loans (11%). Bank deposits of retail clients are also growing (9.1%), supported by the success of the no-fee account U konto (U Account) which is gaining growing popularity, especially among young clients.
  • In the corporate segment, deposits from clients significantly increased by 18.1% yoy. Stable growth of granted loans (4.8%) was visible in the segment of small and medium enterprises which reported a two-digit growth by 10.1%.
  • As for leasing companies, financed value of vehicles grew by 26% in the first half of 2016 compared to the same period of 2015. The most significant year-on-year growth expressed in percent was reached by vehicles up to 3.5 tonnes (31%) and vehicles over 3.5 tonnes (7%).

Novelties and awards 

  • At the beginning of this year, both UniCredit Leasing and UniCredit Factoring celebrated 25 years on the Czech market.
  • In the first half of 2016, UniCredit Bank also introduced several important product novelties. Customers can now open U konto TANDEM (U Account Tandem) which enables them to fulfil the condition of minimum turnover for no-fee current account in tandem. The introduction of PRESTO Půjčka (PRESTO Loan) with a bonus of CZK 3,000 (in the case of loan over CZK 100 thousand) was also promoted by a marketing campaign of the Bank. The Bank already launched the second round of the successful programme “Doporuč a získej” (Recommend and Be Awarded) in which the Bank rewards its customers for recommending services to friends and acquaintances.
  • In the Zlatá koruna (Golden Crown) competition, UniCredit Bank had the best mortgage and consumer loan. Also mobile Smart Banking was successful, winning the second place in the Novelty of the Year category. The professional jury also awarded the stock dividend fund of Pioneer Investments, which is a member of UniCredit Group. 

Note for editors

The consolidated net profit of the financial group UniCredit Bank Czech Republic and Slovakia, a.s. includes results of UniCredit Bank and UniCredit Leasing in the Czech Republic and in Slovakia, as well as the results of the factoring company UniCredit Factoring Czech Republic and Slovakia, a.s.

Enquiries:
Zuzana Ďuďáková,
hovorkyňa UniCredit Bank Czech Republic and Slovakia a UniCredit Leasing SK, a.s.
E-mail: zuzana.dudakova@unicreditgroup.sk, tel. 02/49502303

13/06/2016 - Giovanni Guidi appointed as a new Board member of UniCredit Bank

Prague, 13 JuneGiovanni Guidi (62) became a new Board member of UniCredit Bank Czech Republic and Slovakia in June. Within UniCredit Bank, he will continue in his position as Head of Retail and Private Banking Division.

Giovanni Guidi has more than 40 years of experience in the banking sector. He started his career in UniCredit Group in 1975 as an employee in retail network of Credito Italiano. He gradually made his way up to top management. He was in charge of the development of Retail and SME segment as well as of Credit and Market Risk Processes.

Giovanni Guidi started his international career in 2002 in UniCredit Group’s New Europe Division, where he was responsible for the development of Retail and SME segment. From 2005, he participated in the reorganisation of UniCredit Group and worked as a regional manager in several Central and Eastern Europe countries, from Poland and Croatia to Turkey.

In 2008, Mr. Guidi held the office of Head of Retail Risk in Ukrosotsbank, a former Ukrainian branch of UniCredit Group. In 2010, he joined UniCredit Bank Czech Republic as Head of Consumer Finance. In 2012, he was appointed Head of Retail Banking Division and shortly after also Executive Committee member. Mr. Guidi participated, for instance, in strategies for acquisition and retention of affluent clients and in development of retail banking.

12/05/2016 - Banking in CEE – supporting sustainable growth and innovation

Banking in CEE – supporting sustainable growth and innovation

  • Corporate lending remains a central area of banks´ business in the region, a moderate recovery expected going forward
  • The structure of corporates’ sources  of financing in CEE indicates a potentially greater role for debt securities

Corporate lending is going to remain a central area of banks´ business in Central and Eastern Europe (CEE - CEE includes Bosnia, Bulgaria, Croatia, Czech Republic, Hungary, Poland, Romania, Russia, Serbia, Slovakia, Slovenia, Turkey and Ukraine) and it is expected to recover moderately going forward. This is one of the key findings of the recent “Banking in CEE – Supporting Sustainable Growth and Innovation” study compiled by CEE Strategic Analysis at UniCredit. Although corporate lending has been weak in most CESEE (Central Europe and South Eastern Europe (CESEE) is CEE excluding Russia, Turkey and Ukraine) countries in the past years, which appears to be related to lower investments and, in part, to higher corporate savings, corporate loans growth has accelerated  in some countries in 2015. At the same time the structure of corporates’ sources of financing in CEE indicates that there is scope for a potentially greater role for debt securities. Exports and EU funds should provide additional business opportunities for banks in the region.

“The economic environment, in which banks are operating in Central and Eastern Europe, is expected to remain overall positive. Most countries in the region will show solid economic growth in both, 2016 and 2017”, said Carlo Vivaldi, Head of CEE Division at UniCredit. According to UniCredit Research real GDP growth of CESEE should reach 3.2 per cent this year and 3.3 per cent next year following 3.5 percent in 2015, the respective rates of CEE will be 1.3 per cent and 2.6 per cent following 0.4 per cent last year.  Moreover economic growth is expected to spread to all CEE countries in 2016.

corporate-loans.png

“Following the global financial crisis in 2008, the corporate financing gap in CESEE has turned positive reflecting low financing needs due to lower investments and, in part, higher savings ”, stated Mauro Giorgio Marrano, Deputy Head of CEE Strategic Analysis at UniCredit. For example gross corporate savings as a portion of GDP climbed to 20.2 per cent on average in Bulgaria in the 2009 – 2014 period compared to 15.5 per cent between 2004 and 2008, and to 17.6 per cent on average in Hungary compared to previously 14.1 per cent. Although not all CESEE countries have shown an increase in corporate gross savings, the reduction in investment has been observable across the board. As the economic recovery progresses, corporate lending is expected to pick up with the regional laggards improving.

While lending is going to remain the main source of corporate financing in CEE, there is scope for a potentially greater role of debt securities. “Over the past years, we have seen that the share of financing through debt securities has increased somewhat in countries such as Czech Republic, Poland and Slovakia. Nevertheless its share is still low in most countries”, noted Carlo Vivaldi. On average the share of debt securities in total corporate financing amounts to 8 per cent in CESEE, but it is 10 per cent in Western Europe and 43 per cent in the US. Czech Republic, Poland and Slovakia are already above CESEE average.

corporate-debt.png

Further business opportunities for banks´ corporate business may be initialized by growing exports and an improving absorption of EU funds. Exports represent a significant portion of GDP in most CEE countries exceeding euro area and global average. With the euro area being the most important trading partner of the region, exports should record solid growth rates above the global average in most CEE countries in 2016 and 2017.

eu-funds.png

EU Funds are an important source of financing CEE-EU (This group includes some of the countries that joined the EU in 2004 and 2007, namely Bulgaria, Croatia, the Czech Republic, Hungary, Poland, Romania and Slovakia) economies, with banks providing advisory services, co-financing and financial intermediation. For the current programming period 2014 – 2020, more than EUR 200 billion has been allocated by the European Commission under the European Structural and Investment Funds for the CEE member states. Approximately EUR 117 billion is allocated to six CEE countries, being Bulgaria, the Czech Republic, Croatia, Hungary, Romania and Slovakia. Out of this, 20 per cent or EUR 23 billion, are meant to finance the private sector, where banks are mostly involved. “Around EUR 3.5 billion will be implemented through facilities approved by UniCredit”, estimated Carlo Vivaldi, Head of CEE Division at UniCredit.

UniCredit re-invests EUR 13 billion in organic growth of CEE business

UniCredit considers itself a long-term, strategic investor in Central and Eastern Europe, which is keen to develop its business with both corporate and private customers in the region. Since 2007 CEE Division re-invested a total of EUR 13 billion in profit before tax in the region.

In 2015 the banking group has acquired over 1.2 million new customers across all CEE countries, where it has a presence, and it intends to grow its customer base by another 1 million customers each year until 2018. Over the same period CEE CIB aims at increasing its number of customers by approximately 10,000 corporations annually. According to its Strategic Plan UniCredit is going to invest EUR 1.2 billion into digitalization aiming equally at matching new trends in customer behaviour and reducing costs. The number of internet banking users is projected to increase from currently 5 million to 10 million and the number of mobile banking users from currently 1 million to 7 million over the next three years.  CEE lending volume is expected to grow by EUR 20 billion to EUR 106 billion in 2018.

“We are fully committed to the new Strategic Plan and its implementation is fully on track, including the intended transfer of CEE shareholdings from Vienna to Milan by year-end 2016. With this step, we lay the foundation for an even leaner governance structure and a more effective capital and liquidity management within the Group”, emphasized Carlo Vivaldi.

UniCredit is the banking group number one in Central and Eastern Europe – in terms of network, total assets and geographic diversification. The banking group operates an extensive network of roughly 3,000 branches in 13 countries, which generates roughly one quarter of its total revenues. UniCredit in CEE serves more than 26,000 international corporate customers. 2 out of 3 international corporate customers from Germany, Italy and Austria operating in CEE are served by UniCredit´s International Centers. The banking group has a long-established expertise in handling state and EU-supported programs in the CEE region resulting in more than EUR 2 billion facilities dedicated to EU Funds projects approved and another over EUR 1.3 billion agreements signed with the European Investment Fund in the first programming period 2007 - 2013.  By this, UniCredit supported more than 8,000 CEE companies, mainly SMEs with EU funds and financial instruments.

UniCredit

UniCredit is one of  Europe's leading commercial banks with strong roots in 16 European countries. Our network, which is present in roughly 50 markets, includes over 7,000 branches and over 125,000 FTEs (as of December 31, 2015).

In the CEE region, the Group operates a large international banking network with more than 3,000 branches (incl. Turkey at equity).

UniCredit operates in the following countries: Austria, Azerbaijan, Bosnia and Herzegovina, Bulgaria, Croatia, the Czech Republic, Germany, Hungary, Italy, Poland, Romania, Russia, Serbia, Slovakia, Slovenia and Turkey.

Enquiries:
UniCredit Media Relations International
Tiemon Kiesenhofer, Tel.: +43 (0) 50505 56036   
Email: tiemon.kiesenhofer@unicreditgroup.at

11/05/2016 - UniCredit Bank Czech Republic and Slovakia achieved consolidated net profit of CZK 1.3 billion for the first 3 months of 2016

Stable growth in lending, deposits and an increase in the number of clients with unbeatable U konto

  • Consolidated net profit went down slightly by 4.2% yoy adjusted for the effect of the contribution to the Resolution Fund and the Deposit Insurance Fund, which was posted in 1Q2016. Having accounted for the mandatory contribution, it went down by 20.3% yoy to CZK 1.3 billion.
  • Operating income was down 8% yoy.  
  • Compared to 31 March 2015, loans to clients rose by 5.5%. 
  • Customer deposits increased by 14.2% yoy. 
  • Total assets went up by 16.5% yoy.  
  • Consolidated capital adequacy is 15.62% (non-audited data). 
  • In its Private Banking Survey 2016, the renowned Euromoney Magazine awarded UniCredit Bank for its innovative private banking technology and its Art Banking service, oriented on investment in art. In the Mergermarket Agency’s M&A Awards, UniCredit was awarded Financial Adviser of the Year Central & Eastern Europe thanks to its advisory in the Czech Republic and Slovakia. 

The after-tax preliminary consolidated profit of UniCredit Bank Czech Republic and Slovakia decreased from CZK 1,677 million (as of 31 March 2015) to CZK 1,337 million (as of 31 March 2016). Mr Jiří Kunert, CEO and Chairman of the Board of Directors of UniCredit Bank Czech Republic and Slovakia, commented on the results:

Our business results are in line with the development of the banking sectors profitability in an environment of low interest rates and yet, despite this fact, it exceeds market expectations. The most significant decline in revenues was recorded in trading on financial markets, which last year quarter was compared to this year's very strong. In the retail segment, we are continuing the dynamic development of new products and digital innovations in consumer financing, and this has been translated into clientsdemand and double-digit growth in loans and mortgages. The same pace is also maintained in lending to small and medium-sized enterprises. This year’s good start has also been reflected in more than 20 per cent increase in the financed value of vehicles provided by our leasing companies. 

Items of Profit and Loss Statement  

The net interest income of UniCredit Bank Czech Republic and Slovakia was down to CZK 2,511 million (as of 31 March 2015: CZK 2,565 million). The net income from fees and commissions declined
to CZK 925 million yoy (as of 31 March 2015: CZK 941 million).  

The level of general administrative expenses rose by 24.7% to CZK 2,240 million (as of 31 March 2015: 

CZK 1,796 million). After adjustment of costs to the Resolution Fund and to the Deposit Insurance Fund, is the annual increase in general administrative expenses 6%. The credit risk cost dropped to CZK 172 million yoy (as of 31 March 2015: CZK 346 million).

In line with IFRS we booked the estimated costs for our contribution to the Resolution Fund and the Deposit Insurance Fund in 1Q 2016, hence the net profit is down 20.3%, adjusted the consolidated net profit dropped slightly, by 4.2%. Despite the persistent environment of low interest rates, we have maintained a solid base of net interest income and have succeeded in increasing the volume of transactions across all segments. Our credit risk cost was down to CZK 172 million, reflecting the soundness of our portfolio as well as strong macroeconomic environment. We further continue to grow both in loans and deposits.” said Gregor Hofstaetter-Pobst, CFO of UniCredit Bank.

Balance Sheet  

In retail banking, consumer financing reported further strengthening. Retail loans posted double-digit growth, with mortgage loans increasing by 14% yoy and consumer loans rising by 12% yoy. The number of clients who use the free-of-charge U konto account with a 10-year guarantee of conditions amounted to 263,000. Over the last quarter there was an increase of almost 10%.

In the corporate segment, there was a 7% yoy growth in lending to small and medium-sized enterprises. Corporate banking deposits also reported a strong increase, almost by 20% yoy.

In the leasing companies, the financed value of vehicles for 1Q2016 grew by 19% compared to the same period in 2015. The strongest yoy percentage growth was reported in commodities by vehicles up to 3.5 tonnes (35%) and vehicles over 3.5 tonnes (20%).

As of 31 March 2016, total assets of UniCredit Bank Czech Republic and Slovakia amounted to CZK 625,650 million, representing a 16.5% increase compared to the figures as of 31 March 2015 (CZK 536,988 million).  

On the assets side of the Balance Sheet, receivables from clients increased by 5.5% to a total of CZK 368,051 million compared to 31 March 2015 (CZK 348,970 million).

On the liabilities side, liabilities towards clients grew by 14.2% to CZK 374,870 million (31 March 2015: CZK 328,120 million). Liabilities from debt securities rose by 26.1% to CZK 63,310 million (31 March 2015: CZK 50,198 million).

Compared to 1Q2015, the bank’s equity was up 4.3% to CZK 63,277 million (as of 31 March 2015: CZK 60,671 million).

Note for editors

The consolidated net profit of the UniCredit Bank Czech Republic and Slovakia, a.s., Financial Group includes the results of UniCredit Bank and UniCredit Leasing in the Czech Republic and Slovakia as well as the results of UniCredit Factoring Czech Republic and Slovakia, a.s.

27/04/2016 - Recommend UniCredit Bank products to your friends and be rewarded with up to EUR 60 per each recommended client

UniCredit Bank launches a new Recommend and Be Rewarded programme. With this programme, UniCredit Bank rewards its loyal clients who recommend the Bank’s services to their friends and acquaintances. When opening a U Konto account, taking out a PRESTO Loan or Mortgage, all you have to do is present a unique Promo Code of an existing client and the Bank will credit up to EUR 60 to the current accounts of both of them. This programme builds on the success of the previous recommendation programmes and it will take place until 31 May.

Recommend UniCredit Bank products to your friends

In the new Recommend and Be Rewarded programme, UniCredit Bank clients can be rewarded with up to EUR 60 per each relative, friend and acquaintance who they bring to the Bank. All they have to do is inform the prospective new client of their unique Promo Code when recommending such person. They get EUR 10 in the event the new client opens a free-of-charge U Konto current account or its prestigious Premium version. The reward is conditional upon a free-of-charge keeping of account of the new client. For young people up to 26 years of age, the U Konto account keeping is free of charge and without any conditions.

The Bank credits EUR 25 if the new client takes out a consumer PRESTO Loan amounting to at least EUR 3,700 during the campaign. The programme applies to a standard general-purpose loan; moreover, new clients are free to transfer or merge their existing loans into a single lower instalment. Clients get an EUR 25 bonus also for taking out Mortgage, including its refinancing. At the same time, applications have to be submitted by 31 May and contracts have to be signed by the end of July.

There is no limit as to the total amount of the reward. It depends only on the number of recommended clients. As an incentive, the Bank credits a bonus for taking out individual products not only to the new but also to the existing client. The Recommend and Be Rewarded programme takes place until 31 May 2016. Clients will receive their rewards not later than three months after the end of the programme. Read more about the programme at www.unicreditbank.sk/sk/odporuc.

Enquiries:
Zuzana Ďuďáková, Press Spokesperson of UniCredit Bank Czech Republic and Slovakia
E-mail: zuzana.dudakova@unicreditgroup.sk
Tel. No.: +421 2 4950 2303

27/04/2016 - Half of parents help their children with mortgage, helping them with an entire quarter of the property’s price

Parents’ money or pledging their parents’ real estate help as much as one half of young Slovaks buy their new home. Parents mostly offer cash or support in the form of borrowing or savings for their children’s mortgage. Every eighth parent offered their own real estate as collateral for their child’s mortgage loan. According to the unique survey by UniCredit Bank focusing on Slovak people with mortgage, it is most often men and people living in Bratislava who ask for help with financing for housing. 

How have your parents helped you in the purchase of your real estate via a mortgage

Do you and your partner want to make your dreams of buying a home come true and would you like to get the best interest rates? The best rates are usually offered by banks for mortgages of 85-90% of the value of the purchased real estate (LTV), but you lack the remaining finance. In such a case, many Slovaks turn to their parents for help. Nearly every second person with mortgage (47%) received help from their parents as to buying a new home. A 100% financial help, such as cash (23%), is the most common; but there are also other popular ways, including family borrowings (7%) or taking out savings products (4%).

“Despite the historically low rates, purchasing a home through mortgage represents a major financial investment for many of us. We often cannot do without the help of our family at the start. Finances for the start are the most popular rightly because they help twice. With lower mortgages, the young will get better interest rates. In UniCredit Bank, for instance, 3-year fixations start at 1.19% p.a. Young people may also equip their households for the money from their parent. An overwhelming majority of parents provides their children with finances up to one fourth of the real estate’s price,” Zuzana Ďuďáková, Press Spokesperson of UniCredit Bank, comments on the survey’s results.

How much have your parents given you?

More than one out of ten parents (12%) give their own real estate as collateral for the mortgage loan. Such help is convenient, for instance, when purchasing a housing association flat as it is sometimes impossible to pledge such flat when applying for mortgage “Parents’ help with buying a new home does not necessarily mean cash on hand. Frequently, it is the provision of one’s own house as collateral for the mortgage that helps,” Ďuďáková adds.

It is mostly young men in their thirties living in Bratislava who enjoy their parents’ support

It is mostly young men up to 26 years of age from Bratislava and the region of Trenčín who enjoy their parents’ support; parents help more than one half of them. On the contrary, in the regions of Košice and Žilina, six out of nine Slovaks manage their mortgage on their own. Parents’ support is usually provided up to no more than one fourth of the property’s price. Every fourth helping parent (28%) gave a higher amount to their child, it was mostly parents from the regions of Prešov and Trnava.

It is mostly people in their thirties who get a mortgage

At what age do people get a mortgage?

In general, mortgage loans are taken out mostly by people in their thirties to forties (49%), with younger applicants accounting for one third (30%). They use mortgage mainly to buy a house or flat. On the contrary, the older generation prefers refinancing of older mortgage loans. Today, not many people are into building a new house. This applies to all age categories, with building accounting for less than ten per cent of all mortgages.

A typical Slovak repays his mortgage for 22 years on average. The amount of loan has no material influence on the period of repayment. As for fixations, the three-year ones are the most popular; given its historically low interest rates, it was chosen by almost four fifths of clients last year (79%).

Notes for editors

The survey was conducted for UniCredit Bank by the Ipsos agency in March 2016, using a method of online enquiry on a representative sample of 525 Slovak and 840 Czech respondents aged 18 to 65 and on a sample of around 100,000 clients as for UniCredit Bank mortgage data.

Enquiries

 Zuzana Ďuďáková, Press Spokesperson of UniCredit Bank Czech Republic and Slovakia
E-mail: zuzana.dudakova@unicreditgroup.sk
Tel. No.: +421 2 4950 2303

06/04/2016 - Economic growth to spread to all CEE countries this year

  • CEE-EU to repeat 2015 performance, when GDP grew at its fastest pace since the global financial crisis
  • Growth is firming in Turkey, Serbia and Croatia, recessions in Russia and Ukraine are easing

Despite the recent turbulence in global financial markets, Central and Eastern Europe (CEE) entered 2016 on a strong note, with economic activity gaining pace and financial markets resilient.  With growth in the Euro Area  expected to hold well, ECB  embarking on another round of Quantitative Easing, and the Fed adopting a dovish stance, growth should spread to all CEE countries this year and continue at a similar pace in 2017. According to the latest CEE Quarterly published by UniCredit Economics & FX/FI Research department, output expansion will be mainly driven by the ongoing recovery in domestic demand. However, growth will vary by pace and sustainability from country to country. In CEE-EU (This group includes some of the countries that joined the EU in 2004 and 2007, namely Bulgaria, the Czech Republic, Hungary, Poland, Romania and Slovakia. Croatia is addressed separately.) real GDP rose at its fastest pace since the global financial crisis last year and looks on track to repeat this performance also in 2016.

Spurred by concerns about China, global growth prospects and the health of the European banking sector, financial markets underwent major turbulence early in the year. Even though not substantiated by tangible evidence about an impending recession, the global selloff had a significant impact on emerging markets. Although markets calmed down as of late due to evidence about the continued economic strength in Europe, the US and China and the ECB´s renewed round of QE, the global outlook for emerging markets has become more uncertain. Against this background, CEE-EU stood out as an island of stability with the downturn limited and the recovery swift. Growth also firmed in Turkey, Croatia and Serbia. In the latter two, the lack of policy space given high fiscal deficits and debt kept growth subdued. In Turkey, growth was driven by fiscal and monetary expansion. Recessions in Russia and Ukraine have eased.

“Unlike elsewhere in the region, the expansion in domestic demand in CEE-EU has not been accompanied by the buildup of macroeconomic imbalances. This has enabled local authorities to pursue growth-supporting policies without putting financial stability at risk. The strong expansion in domestic demand gave an important cyclical boost to revenues, while the surge in EU-transfers enabled governments to boost public investment without jeopardizing deficit targets,” said Lubomir Mitov, CEE chief economist at UniCredit, “The solid external positions enabled the CEE-EU to benefit to the fullest from the ultra-low global interest rates and ample liquidity, keeping monetary stances accommodative with interest rates at record lows and currencies stable.”

GDP change in % 

Forecast for 2016

Forecast for 2017

EU Members

Bulgaria

3.4

3.6

Croatia

1.5

1.6

Poland

3.7

3.8

Romania

4.3

3.8

Slovakia

3.2

3.2

Slovenia

1.9

2.4

Czech Republic

2.2

3.0

Hungary

2.7

2.6

EU candidates and others

Bosnia-Herzegovina

3.0

3.4

Russia

-2.5

1.2

Serbia

2.2

1.8

Turkey

3.3

3.4

Ukraine

2.0

2.5

Source: UniCredit Economics & FX/FI Research, CEE Quarterly 2Q16

Near-term outlook remains benign, scope for growth-supportive policies about to melt

Going forward, UniCredit researchers remain upbeat about the near-term outlook. Despite the heightened market volatility at the start of the year, they stick to their above-consensus forecast for Euro Area growth of 1.7 per cent in 2016. Recent PMI readings and high frequency data such as exports, orders and industrial production have confirmed that economic activity in the Euro Area continues to plough ahead at a robust pace. That said, growth performance is expected to improve across CEE region, with 2016 likely to be somewhat better than 2017. Scope for growth-supportive policies will be larger this year as well, with strains emerging in a number of countries next year that would necessitate fiscal adjustment and monetary tightening.

Overall growth should remain the strongest and more balanced in the CEE-EU, but is likely to pick up pace also in Croatia and Serbia. Growth should pick up also in Turkey later in the year, as political tensions subside and the effects of the 30 per cent minimum wage hike enacted at the start of the year filter through the economy. Both, Russia and Ukraine, will exit recessions, but recoveries will remain uneven and slow, hindered by the absence of structural reforms needed to boost potential growth. While recovering oil prices will support the ruble and Russian bonds, fiscal policy will become the key challenge. Ukraine, meanwhile, will struggle, with debt and sustainability a concern, until the oligarch-dominated political model is dismantled.

“The expected recovery in bank credit will also provide an important boost to private consumption, which will benefit from improving labor markets and stronger wage growth. We expect bank lending to play a greater role in financing the economy given strong capital positions, ample liquidity, very low interest rates, and signs that the deleveraging that began with the global financial crisis has largely run its course”, stated Lubomir Mitov.

Inflation in CEE-EU to shift to a sustained upward trend

The pattern of growth is likely to be similar next year, but perhaps a tad lower as exports weaken with demand in the Euro Area softer and a stronger euro denting competitiveness vis-à-vis third countries. On the other hand, EU fund absorption ought to pick up again, offsetting most of the drag from net exports. An important distinction in 2017 will be the more limited policy space as higher global interest rates force monetary tightening among CEE-EU and with a number of countries facing the need for fiscal adjustment to avoid breaching the 3 per cent of GDP deficit limit.

Despite robust domestic demand, price pressures will remain restrained this year, mostly thanks to the lower oil and food prices and imported disinflation from the Euro Area. The inflection point for consumer prices is expected to be in 2Q16, after which inflation will shift to a sustained upward trend. This will not only reflect the lapse of favorable basis effects, but also rising core inflation as output moves above potential in most of the CEE-EU. Nevertheless UniCredit researchers do not expect inflation to approach central banks´ targets before late next year, when rate hikes will be back on the agenda. In the meantime, central banks are very likely to remain on hold. Modest further easing could be in the cards only in Poland.

UniCredit

UniCredit is one of  Europe's leading commercial banks with strong roots in 16 European countries. Our network, which is present in roughly 50 markets, includes over 7,000 branches and over 125,000 FTEs (as of December 31, 2015). 

In the CEE region, the Group operates a large international banking network with more than 3,000 branches (incl. Turkey at equity).

UniCredit operates in the following countries: Austria, Azerbaijan, Bosnia and Herzegovina, Bulgaria, Croatia, the Czech Republic, Germany, Hungary, Italy, Poland, Romania, Russia, Serbia, Slovakia, Slovenia and Turkey.

Enquiries:
International Media Relations
Tiemon Kiesenhofer, telephone: +43 (0) 50505 56036
e-mail: tiemon.kiesenhofer@unicreditgroup.at

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