CEE Banking: Strong Growth; Consolidation; Erste Strengthening Regional Leadership

"Driven by economic growth and rising household wealth, the banking sector across Central and Eastern Europe (CEE16*) has expanded by over 56% in the past five years. Unsurprisingly, leading banking groups such as Erste, KBC, UniCredit, and others are competing aggressively to secure regional leadership" said Marcin Mazurek, Director at Inteliace Research when presentin the latest report by Inteliace Research - TOP200 banks in CEE

Steady improvements in profitability further enhance the sector's appeal, creating room for new investments-particularly in process automation, product innovation, and value-added services. These advances deliver measurable benefits to both shareholders and customers, reinforcing a positive outlook for CEE banking.

Robust Growth Across the Region

In 2024, the CEE banking sector maintained its strong growth trajectory, with total assets rising by over €170 billion (8.3% year-over-year) to a record €2.2 trillion by year-end. Growth was broad-based, with 15 of the 16 markets posting gains. Lithuania, Albania, and Poland led the pack, each registering over 12% annual asset growth.

The entry threshold for the TOP200 CEE banks rose to €915 million in 2024, a 13% increase from €812 million the prior year-underscoring the growing scale and maturity of leading regional institutions.
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Market Structure: High Concentration in Core Markets

Nearly half of the region's major banks are concentrated in four countries-the Czech Republic, Hungary, Poland, and Romania-which serve as CEE's banking anchors, bolstered by well-developed financial infrastructure. The remaining institutions are spread across 12 smaller but dynamic markets, including Montenegro, which was added to the analysis in 2021.
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Poland Leads, Smaller Markets Gain Momentum

Poland remains CEE's largest banking market, with €780 billion in assets-35% of the regional total as of 2024. It is followed by the Czech Republic (€422 billion, 19%) and Hungary (€193 billion, 9%).

Meanwhile, smaller markets are emerging as growth leaders: since 2020, Lithuania, Albania, Bulgaria, and Montenegro have each seen banking assets expand by over 55%, driven by improving macroeconomic fundamentals and deeper financial penetration.
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Profitability Hits Record Levels

CEE banks hit new profitability highs in 2024, with return on equity (ROE) climbing to 15.6% and return on assets (ROA) reaching 1.56%. These results cap a sustained upward trend: profitability has tripled since 2020, driven by economies of scale, improved cost management, digital transformation, regulatory alignment, and rising demand for financial services.
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Consolidation Reshapes the Competitive Landscape

Consolidation is accelerating as leading banks expand and others exit or refocus. The most notable move came in early 2025, when Erste Bank acquired a 49% stake in a large Polish bank from Santander for €6.8 billion in cash.

This acquisition filled a strategic gap in Erste's Central European portfolio, lifting its regional assets to €236 billion and giving it a 10.7% CEE16 market share-cementing its position as the region's clear leader.

Other top regional players include: #2 KBC (€142 billion); #3 UniCredit (€125 billion); #4 PKO (€122 billion); #5 OTP (€108 billion); #6 Raiffeisen (€100 billion). Together, the 10 largest banking groups control €1.2 trillion in CEE16 banking assets, or 53% of the regional total-underscoring the sector's growing concentration.
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Outlook: Further Growth and Transformation

The outlook for CEE banking remains robust. A solid economic foundation, rising household wealth, and growing demand for financial services are set to fuel long-term expansion. Consolidation is likely to continue, unlocking scale benefits and operational efficiencies for major players. Together with digital innovation and regulatory alignment, these trends will further strengthen the sector.

At current growth rates, total regional assets are expected to exceed €2.5 trillion by mid-2026.

For more insights on CEE's top banks, check the latest report by Inteliace Research: https://www.inteliace.com/en/00236_List_of_Top_200_banks_in_CEE_2025.html

*CEE16 includes: Albania, Bosnia and Herzegovina, Bulgaria, Croatia, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Montenegro, North Macedonia, Poland, Romania, Serbia, Slovakia, and Slovenia.

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Inteliace Research provides value-added research services and tailored business intelligence solutions. Through customized research, we help clients gain deeper insights into their customers, competitors, and market dynamics.

As the research and analysis division of Elepton Sp. z o.o., a leading business consultancy, we serve clients across Poland and Central and Eastern Europe with expertise grounded in regional market knowledge.

This release was published on openPR.