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The sector has a substantial representation of international banks, accounting for over 80% of the total banking assets as of 2022. Among these are prominent European banking conglomerates with operations spanning several Central and Eastern European nations.
There have been some significant changes of ownership in the Serbian banking market over the last few years. After Slovenian banking group NLB’s takeover of Komercijalna Banka, in 2023 Greek bank Eurobank sold its Serbian subsidiary to AIK Banka, making the latter the second-largest banking group in the country.
AIK’s owner MK Group now plans to expand its presence in the banking sector in Serbia and the region, as well as growing its business in other sectors such as renewables and agriculture.
Also in 2023, Raiffeisen Banka completed its legal and operational merger with RBA Banka, formerly Crédit Agricole Srbija. The merger began in April 2022 with the acquisition of 100% of RBA Banka's shares. It has increased Raiffeisen Banka's market share in Serbia to 12%.
In another potential M&A deal, Montenegro’s central bank said in November it has received a request for approval of the purchase of a 50% stake in Prva Banka Montenegro from an unnamed Serbian company.
A survey by the European Investment Bank (EIB) among bankers found that the Serbian banking market is perceived as more attractive than it was six months ago. 25% of parent banking groups said they considered market potential to be low, while 75% assessed it as medium.
This was despite bankers reporting a decline in loan demand in the second and third quarters. Demand is forecast to remain weak into early 2024.
Bank lending to the non-monetary sector continued its y/y deceleration in Serbia in the second quarter of 2023, the National Bank of Serbia (NBS) said (latest data available).
“The slowdown in domestic lending resulted from high last year’s base, maturing of guarantee scheme loans and higher lending interest rates due to tightened NBS and [European Central Bank] ECB monetary policies,” the central bank said.
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