Country
Bulgaria

Beneficiary
DSK Bank (formerly Bulgarian State Savings Bank)

Donor
EU Phare, Bundesministerium für wirtschaftliche Zusammenarbeit und Entwicklung (BMZ)

Duration
1994 – 2002

The aim of the project was to implement DSK Bank's business strategy, which was developed with the support of Sparkassenstiftung, throughout the country. DSK Bank focussed on serving private customers and SMEs. From 1995 to 1997, Sparkassenstiftung seconded a long-term credit expert to DSK Bank, whose tasks included the development of an internal structural and process organisation as well as a credit manual and personnel training in the lending business. From 1997 to 2001, Sparkassenstiftung supported DSK Bank in the massive expansion of its lending business in all regions of the country. By the end of 2002, DSK Bank was offering credit products for SMEs and private individuals in over 300 branches throughout the country. The total loan portfolio (lending to non-banks) totalled EUR 360 million, which corresponds to a market share of 20%.

DSK Bank's branch network was restructured; more than 30% of all branches were closed between 1994 and 2000. The number of employees fell by 7,500 to 5,500, while the volume of business increased by 300% to EUR 600 million. DSK Bank thus developed from a loss-making state savings bank into a professionally operating retail bank with a return on equity (ROE) of 20% in 2002, when it was privatised for more than EUR 300 million (purchased from OTP Bank, Hungary).