Competition keeps eroding BCR's market share

The BCR’s market shares on the retail segment continued to erode in the third quarter of the year, both for loans and for deposits, according to data published by Erste Bank, the majority shareholder. In September, the largest bank in terms of assets held 21.2% of the retail credit market, down 2.2% against March. Compared with 2006, BCR lost almost 4 percentage points of the lending market for individuals, amid restructuring, coupled with an intensification of competition from small and medium-sized players. The market share for retail deposits was down from 27.7% in March to 26% in September. Compared with the 2006 level, the contraction is similar to that of the credit market, by 4.8%. Two years ago, BCR controlled over a third of the market of deposits set up by individuals. According to half-year results, Erste Bank, the majority shareholder of BCR, was the second largest bank in Austria in terms of assets, behind Bank Austria (UniCredit) and the second largest in the region, also behind the UniCredit group.