Poland Bank Pekao strategic analysis

1. STRATEGIC
ANALYSIS
BANK
PEKAO
(Matteo
Biagini)
Poland’s
banking
sector
is
the
biggest
banking
market
in
the
central
and
eastern
European
region.
The
country’s
banking
sector
is
70%
owned
by
foreign
investors.
Some
of
the
foreign
parent
banks
have
sold
their
Polish
units
this
year
to
tide
over
the
crisis
in
their
home
markets.
Concerning
the
Strategic
group
analysis
regarding
Bank
Pekao,
we
analyzed
the
market
of
banking
sector.
We
saw
that
Bank
Pekao
has
5
main
competitors:
Bank
handlowy
w
warszawie
(citigroup),
Deutsche
Bank,
ING
Bank
Śląski,
Raiffeisen
bank
polska
SA.
Bank
Zachodni
(grupe
Santander).
Following
the
Strategic
Group
Analysis.
Product
Line
Breadth:
1 Bank
Pekao:
Financial
services
personal
accounts
express
loans,
mortgage
loans,
credit
cards,
prepaid
cards,
investment
products,
internet
banking,
mobile
banking,
phone
top-­‐ups.
2
Bank
handlowy
w
warszawie
(citigroup):
Current
accounts:
Savings
Account,
Super
Saving
Account
Services:
Citibank
Online,
Citi
Alerts,
Mobile
top
up,
Cheap
CHF
Rebate
Programme,
Medical
Package.
3
Deutsche
Bank
:
Accounts,
Credit
Cards,
Deposits,
Structured
Investments,
Investments
funds,
Stock
Exchange
services
Credits
and
loans,
Bancassurance.
Business
Clients:
Accounts
and
settlements,
Credits
db
FranchiseFinance
Deposits
and
investments
Stock
Exchange
services.
Corporate
Clients:
Cash
Management
&
Trade
FinanceTrust
&
Securities
Services
Corporate
Finance
4
ING
Bank
Śląski
Payments,
Savings,
Loans,
Insurances,
Mortgages,
Insurance
on
life
and
health,
Investments,
Retirement
Products.
5
Raiffeisen
bank
polska
SA:
financing,
leasing,
investing,
hedging,
trade
&
export
finance,
investment
banking,
cash
management,
payment
services,
custody
&
fund
services.
6
Bank
Zachodni
(grupe
Santander)
from
daily
banking
operations
to
investment
management
or
the
granting
of
a
mortgage.
Also
from
the
financing
of
equipment
and
investments,
or
the
handling
of
foreign
trade
collections
and
payments,
to
Treasury
management
and
an
extensive
range
of
transactional
services.

2. Geographic
convergence:
UniCredit
group):
is
one
of
Europe's
leading
commercial
bank
with
strong
1)
Bank
Pekao
(
roots
in
17
European
countries.
This
bank
is
present
in
roughly
50
markets,
includes
more
than
8,900
branches
and
over
147,000
employees.
The
Group
operates
in
the
following
countries:
Austria,
Azerbaijan,
Bosnia
and
Herzegovina,
Bulgaria,
Croatia,
the
Czech
Republic,
Germany,
Italy,
Poland,
Romania,
Russia,
Serbia,
Slovakia,
Slovenia,
Turkey,
Ukraine
and
Hungary.
2)
Bank
handlowy
w
warszawie
(citigroup):
Proudly
serving
more
than
100
million
clients
in
40
countries,
and
above
all
in
some
of
the
world's
most
important
growth
markets,
from
China,
Malaysia,
Korea
and
India
in
Asia
Pacific,
to
Poland
and
Russia
in
Europe,
to
Mexico,
Brazil,
Colombia,
Argentina
and
Panama
in
Latin
America.
In
Mexico
3)
Deutsche
Bank
Is
a
Germany
based
group.
Against
a
backdrop
of
increasing
globalization
in
the
world
economy,
Deutsche
Bank
is
very
well-­‐positioned,
with
a
presence
in
over
70
countries,
significant
regional
diversification
and
substantial
revenue
streams
from
all
the
major
regions
of
the
world.
They
have
bases
in
all
major
emerging
markets
including
the
Asia
Pacific
region,
Central
and
Eastern
Europe,
and
Latin
America.
4)
ING
BANK
Is
a
Netherlands-­‐based
group,
with
thousands
of
branches
in
more
than
40
countries.
With
global
reports
made
available,
you
can
access
comparative
economic
data
of
countries,
country
analysis
and
forecasts,
and
international
market
forecasts.
5)
Reiffesen
Bank
Raiffeisen
Bank
International
considers
Austria
and
Central
and
Eastern
Europe
(CEE)
its
home
market.
In
Austria,
it
is
a
leading
commercial
and
investment
bank.
In
CEE,
its
subsidiaries
cover
the
entire
region:
approximately
14.6
million
customers
are
serviced
at
more
than
3,000
business
outlets
in
the
corporate
and
private
customer
segments
as
well
as
in
investment
banking.

3. 6)
Bank
Zachodni
(grupe
Santander):
Santander
Consumer
Finance
is
a
leading
consumer
finance
company
operating
in
13
European
countries,
from
mature
to
emerging
markets:
Austria,
Belgium,
Denmark,
Finland,
Germany,
Italy,
the
Netherlands,
Norway,
Poland,
Portugal,
Spain,
Sweden
and
the
UK.
Geographic
convergence
vs.
Product
Line
Breadth
We
decided
to
analyze
geographic
convergence
because
it
has
importance
in
today
internationalized
banking
sector.
The
main
reason
is
because
the
polish
banking
market
is
owned
for
a
70%
by
foreigns
investors
and
geographic
convergence
importance
is
rising
in
all
industry
and
it
means
that
a
globalized
and
internationalized
bank
can
create
a
relevant
competitive
advantage.
And
above
all
the
more
a
bank
is
global
the
more
is
linked
with
other
banks
and
the
more
the
customer
has
the
possibility
to
benefit
from
more
services
all
over
the
world.
But
on
the
other
hand,
companies
have
also
to
consider
the
product
line
breadth
because
customer
can
choose
the
bank
with
the
biggest
product
line.
Concerning
the
product
line
breadth
we
can
note
that
some
are
narrows
and
other
are
wider.
Pek
ao
Deut
sche
Raiff
eisen
Bank
handl
owy
ING
zac
hod
ni
Geographical
Convergence
Product
line
breadth
NARROW
WIDE
LOW
HIGH

4. Analyzing
the
geographical
convergence
we
can
see
that
the
banks
operating
in
Poland
are
brenches
of
baks
operating
all
over
the
world.
We
can
go
from
Deutsche
Bank
that
it
is
present
in
70
countries
to
Raiffesen
that
operates
in
Central
and
Eastern
Europe.
Bank
Pekao
is
in
a
middle
position
beacuese
it
operates
in
17
European
country
plus
Azerbaijan,
Russia,
Turkey
and
Ukraine.
So
we
can
say
that
Pekao
is
in
many
countries
but
is
not
globalized
as
Deutsche
Bank,
Bank
Handlowy
and
ING.
Concerning
the
product
line
breadth
we
can
see
that
Deutsche
Bank
is
still
dominating
and
that
now
Bank
Zachodni
(grupe
Santander)
is
in
a
good
position.
But
also
Bank
Pekao
is
offering
a
lot
of
good
services
in
Poland
and
for
sure
the
product
line
is
wider
than
Bank
Handlowy
and
Reiffesen
Bank.
Of
course
they
will
have
to
try
to
enter
in
new
markets
but
the
quantity
of
services
offered
in
Poland
is
quite
sufficient
for
the
country.
According
to
the
graph,
Deutsche
Bank
has
the
best
position,
because
right
now
it
is
operating
in
more
than
70
countries
and
the
quantity
of
service
and
power
on
the
market
is
really
high.
But
Bank
Pekao
has
all
the
instruments
to
do
well
in
Poland
and
in
the
future
try
to
enlarge
to
non
european
countries.