Development of the Network

Since starting the expansion in what has developed into the RZB Group's home market Central and Eastern Europe, RZB – and in tune with it Raiffeisen International – have pursued a consistent and clear strategy: Enter new markets early and ahead of competition and then expand locally in line with business growth and customer demand. Thereby, healthy organic growth was achieved both regionally and locally at manageable risk, without overstretching available capital, manpower and organizational structure.

Until the acquisition of Market banka in Bosnia and Herzegovina in 2000, regional expansion was pursued organically, exclusively by founding banks and avoiding the risks and uncertainties of purchasing an existing bank. The advantage of founding operations from the outset was that a modern infrastructure and products could be implemented from the beginning with service-oriented staff hired and trained exactly according to the needs of the new banks. The trust of both customers and business partners increased rapidly, above all due to the fact that Raiffeisen's unique cohesion and reliability over a time-span of more than 100 years was successfully communicated to the public. According to the Raiffeisen principle of being very close to the customer, almost exclusively local employees and board members are hired.

In order to develop the Network faster regionally and locally and to accelerate expansion especially in retail banking, acquisitions of leading local banks were made in Bosnia and Herzegovina, Romania, Slovenia, Kosovo, Belarus, Albania, Ukraine (Bank Aval) and most recently in Russia (Impexbank) and the Czech Republic (eBanka). The most important prerequisites for the purchase of a targeted bank were the potential to increase profitability and the compatibility with the existing Network. In addition, Raiffeisen International invests only in operations where it was welcome as a shareholder.

In terms of business segments, Raiffeisen International's Network Banks invariably started with corporate banking, so as to service the many companies addressing CEE as a reasonable investment target. However, unlike its international competitors, the Network Banks not only serviced international corporations, but also focused on the local business community. Investment banking services were added according to demand and market development. Starting in 1999, the retail business with private individuals and small and medium-sized customers was rolled out. As of year-end 2009, the Group served more than 15 million customers.