Pekao thinks big by targeting smaller sized businesses

Bank Pekao SA has announced plans to increase its operations in servicing the small- and medium-sized enterprise (SME) sector, taking a lead from the largest domestic bank PKO BP. In addition, Bank Handlowy (BH) also hopes to see its share of the market at least double this year. "The revenues of the banking sector from the SME segment are estimated at around $600 million annually," revealed Philip King, BH's deputy president. At present, the leader in the field is PKO BP, with a market share of around 30%, although Pekao SA, with a 21% market share, plans to outperform its rival within the next three to five years and yesterday disclosed its new offer aimed at the sector. BH receives 10-15% of its revenues from SME clients, but it has announced it plans to control a 30% market share by 2005. This is to be achieved through improving its offers to the segment and improving its terms of credit. (Puls Biznesu, p. 10) A.K.