In most nations throughout Central and Eastern Europe (CEE), fortunes for banks primarily improved in 2025, regardless of the uncertainties of the persevering with warfare in Ukraine, a shaky financial restoration within the eurozone, and usually falling rates of interest impacting total earnings.
A priority for a lot of banks, together with these in Hungary and Romania, has been state intervention, most notably governments rising financial institution taxes to spice up income. A research by Fitch Rankings discovered that Hungarian authorities plans to extend income from financial institution taxes might equate to about 8% of the sector’s 2024 working income. Given the final unpredictability, the area has seen a rush towards dimension, with larger banks higher positioned to outlive.
“Current M&A exercise confirms the attraction of the area for worldwide banking teams with sizeable presence. We expect the consolidation will proceed by opportunistic transactions or due to modifications within the wider European banking scene,” says Artur Szeski, senior director at Fitch Rankings.
Different evident tendencies in 2025 included the continued power of Western European-based banks, from Austria, Belgium, Germany, and Italy, inside the CEE area—these banks management some 25%-30% of CEE’s financial institution belongings—and the persevering with development towards dominance by one or two massive banks within the many smaller CEE nations. The banks usually confirmed resilience; eager engagement with the broader monetary world; and a powerful tendency towards innovation and digitalization, with many launching new apps.
So how does the longer term look? Fitch Rankings says it “expects CEE banking sectors to proceed delivering sturdy efficiency in 2026 regardless of challenges from decrease rates of interest.” That assumes these occur, given the uncertainties generated by the continuing warfare within the Gulf (the easing cycles evident in lots of economies have been placed on maintain). Szeski additionally anticipates a brand new wave of presidency interventions and solely tentative restoration in demand for company credit score.
What appears clear is that 2026 might be much more unpredictable for CEE than 2025, with the unsure financial outlook impacting each retail and company enterprise. Nevertheless, the most effective banks—together with our winners right here—must be properly positioned to dodge the pitfalls and discover new alternatives.
Central & Eastern Europe
OTP Financial institution
OTP Financial institution is our regional winner for the fifth yr in a row in CEE—an space comprising 24 nations together with Turkey—beating sturdy competitors from different pan-regional banks together with the Erste Group, UniCredit, and Raiffeisen Financial institution Worldwide (RBI). OTP has come a great distance from its institution as Communist Hungary’s Nationwide Financial savings Financial institution again in 1949. In the present day, OTP is a real regional star working in 11 nations and providing a full and complete vary of banking and insurance coverage providers.
Final yr noticed OTP consolidate its sturdy financials, with whole belongings reaching €118 billion ($138.6 billion), web earnings up 3% to almost €2.9 billion, and return on fairness (ROE) at 21.6%. With over 1,206 branches, OTP Financial institution has just below one third of Hungary’s banking market which accounts for 36% of OTP Group belongings.
The OTP Group scores properly in sustainable finance and social targets, each a part of its mission assertion, and in different key areas. Already energetic in Central Asia—having acquired Ipoteka Financial institution in June 2023 in Uzbekistan, arguably the area’s most diversified financial system—OTP is now focusing on that area’s largest financial system, Kazakhstan. Hungary and Kazakhstan efficiently concluded negotiations over a brand new $100 million joint funding fund within the Astana Monetary Centre in October 2025; and in February 2026, CEO Péter Csányi stated OTP was seeking to purchase a Kazakh financial institution.
Albania & Kosovo
Banka Kombetare Tregtare
In Albania and Kosovo, market leaders Banka Kombetare Tregtare Albania and Banka Kombetare Tregtare Kosoveretained their respective main positions as Nos. 1 and a pair of in every home market, demonstrating the advantages of the group’s joined-up strategy. In Albania the financial institution has an nearly 25% market share, whereas in Kosovo sturdy development has enabled whole belongings to extend to almost €1.6 billion. Final yr the financial institution celebrated its centenary, coinciding with that of Albania itself.
Armenia
Ameriabank
Ameriabank, Armenia’s second-largest financial institution—barely smaller in belongings than Ardshinbank—continues to learn from its April 2024 takeover by Financial institution of Georgia (BOG). With strong financials, Ameriabank presents complete providers and innovation and has loved an uptick in lending.
Azerbaijan
ABB
Previously referred to as the Worldwide Financial institution of Azerbaijan, ABB is the nation’s largest financial institution, controlling some 25% of native banking market belongings, comfortably forward of rivals Kapital Financial institution and Pasha Financial institution. A joint inventory firm with shares 92% owned by the state, it has loved important development with loans rising from AZN 1.9 billion in 2019 to AZN 6.9 billion in 2025, some 23% of the nationwide whole. ABB is concentrated on each particular person and company prospects and its 2026–2028 technique will see it strengthen its market main place through focused development, elevating the general buyer expertise and increasing into new areas and markets. It’s more and more expertise centered, making use of AI, Knowledge, and next-generation applied sciences throughout its product vary and its processes.
Belarus
Priorbank
Belarus’ largest personal financial institution, Priorbank continued to dominate the sector beneath the possession of Emirati group Soven 1 Holding, which purchased its stake from RBI in September 2024 for €230 million. With RBI’s choice to withdraw from Belarus (alongside Russia), RBI suffered a lack of round €300 million. Priorbank has some €2 billion in deposits.
Bosnia & Herzegovina
UniCredit Financial institution
Our winner in Bosnia and Herzegovina—a rustic dominated by Italian and Austrian banks—is UniCredit Financial institution, which remained the undisputed market chief final yr, recording a 14.4% improve in native web revenue to 185 million convertible marks ($111.1 million), whereas whole belongings grew to eight billion marks. The financial institution is acknowledged for its sturdy ESG credentials and for being the most effective financial institution for SMEs. Final yr noticed the introduction of the UniCredit Make investments BH platform and the nation’s first totally on-line money mortgage facility.
Bulgaria
UniCredit Bulbank
Farther east in Bulgaria, UniCredit Bulbank scored one other win for the Italian monetary group, the third-largest financial institution within the Balkan nation however a frontrunner in innovation and digitalization. In contrast to Bulbank’s opponents which have tended to develop through mergers and takeovers, the financial institution has principally grown organically, specializing in SMEs and corporates in addition to retail prospects. UniCredit Bulbank closed 2025 because the undisputed market chief in company banking (loans and deposits), probably the most energetic retail lender, and probably the most environment friendly financial institution in Bulgaria, with the bottom cost-to-income ratio.
Croatia
Zagrebacka banka
Zagrebacka banka, aka Zaba, and a part of the UniCredit Group, is our clear winner in Croatia, displaying good financials and establishing itself as clear market chief—over 25%—on this nation of about 3.8 million folks. In a nation the place digital monetary engagement is excessive—some 80% of the inhabitants—Zaba has launched a number of improvements in its m‑zaba cellular app, equivalent to actual‑time cost notifications, streamlined digital credit score‑card functions, and full digital migration of overdrafts so shoppers not want to go to branches.
The financial institution has benefited from a €100 million risk-sharing facility prolonged to it by the European Financial institution for Reconstruction and Growth (EBRD) in early 2026, which can help loans to corporates and to small and midsize enterprises (SMEs), with the EBRD guaranteeing a proportion of every mortgage. Over 2025, Zaba’s web belongings grew 9.3% to succeed in €28.4 billion, with web earnings up some 2.9% to €572 million.
Czech Republic
Ceska sporitelna
Ceska sporitelna, a part of the Erste Group, is market chief in most classes, with nearly 20% of financial institution belongings and 4.8 million shoppers within the 10.5 million home market. In a crowded monetary sector, Ceska sporitelna is acknowledged as our winner within the Czech Republic for being properly forward in such classes as personal banking, SME banking, and digital options. Innovation is a power, and the financial institution is seen as main its opponents in expertise. It boasts probably the most fashionable banking apps within the Czech market, streamlined and straightforward to make use of, with options together with money‑again and good budgeting instruments. The financial institution reported a 6.1% improve in web revenue to 27.8 billion Czech koruny (over $1.3 billion), over 2025.
Estonia
Luminor Financial institution
Estonia’s Luminor Financial institution has returned as our winner on this small however dynamic financial system, Luminor having reaffirmed its ambitions to develop into one of many prime three banks throughout the three Baltic nations by the top of 2027.
The financial institution is pursuing a three-pronged technique of rising its buyer base, enhancing the effectivity of IT techniques, and digitalizing its working mannequin, in addition to remaining compliant with altering laws within the three economies.
For the total yr 2025, the financial institution posted web earnings of €157.7 million, a drop from 2024’s €202 million, reflecting the eurozone’s decrease rates of interest.
Georgia
BOG
In Georgia, BOG continues to trip the crest of a fast-growing financial system. The financial institution’s place has been strengthened by the Ameriabank takeover. This has given synergies to the guardian firm, the FTSE 250-listed Lion Finance Group, which has loved double-digit lending development. With TBC Financial institution the one actual home competitors, BOG controls over 40% of home lending and deposits. Within the final quarter of 2025, Lion posted pretax earnings of 619.2 million Georgian lari ($230.1 million), up nearly 23% YoY, bringing full yr earnings to almost 2.2 billion lari, a 21% improve.
Hungary
OTP Financial institution
Hungary’s OTP Financial institution carried out higher than its opponents amid a tricky working surroundings—together with a moribund home financial system, a controversial financial institution tax, and stiff competitors. OTP maintained its market-leading place, offering common monetary providers to each retail and company shoppers by the mom firm and native associates equivalent to OTP Mortgage Financial institution, OTP Constructing Society, Merkantil Financial institution (leasing), OTP Fund Administration, and OTP Actual Property.
The financial institution has taken steps to enhance its operational capability, in 2025 opting to formally separate the roles of chairman and CEO to reinforce managerial focus, strengthen government decision-making, and permit quicker reactions to regulatory and market modifications.
New CEO Péter Csányi has recognized key areas to enhance efficiency, together with a stronger concentrate on buyer centricity and boosting the financial institution’s enlargement into such markets as housing, well being care, and e-commerce, in addition to exploiting AI alternatives and on-line channels. OTP has additionally prioritized future-proofing by regional enlargement: Already energetic in 11 CEE nations, it’s eying alternatives in others.
Latvia
SEB banka
Subsequent door, Latvia’s SEB banka (Skandinaviska Enskilda Banken), with a market share of just below 20% of the inhabitants, towards market-leader Swedbank with round 35%, is our winner on this small nation of beneath 2 million folks. The financial institution has excessive market rankings and is a significant innovator in digital channels, with strong cellular and web banking and good instruments for traders and company shoppers.
SEB is pursuing a Baltic-wide technique. The purpose is to unify as one authorized entity by early 2027 after which broaden actions throughout the three Baltic states, which have a mixed inhabitants of round 6 million. The reorganization, effected through two cross-border mergers, goals to reinforce buyer development within the area and streamline company governance whereas sustaining uninterrupted banking operations in every of the three nations. The consolidated authorized entity might be domiciled in Estonia, with branches in Latvia and Lithuania.
Lithuania
Swedbank
Our winner in Lithuania, Swedbank noticed its web earnings down 1% YoY) over 2025—largely reflecting decrease rates of interest—however consolidated its place because the second-largest financial institution by belongings (32% of the full), with the biggest buyer base after Revolut Financial institution.
Moldova
MAIB
In Moldova, market chief MAIB once more wins our award. With Moldova’s financial system beneath fixed menace from Russia, the financial institution has centered on serving to SMEs in addition to particular person prospects. Final October the financial institution secured a €10 million mortgage from the EBRD to help the sector’s export competitiveness, key with Moldova now an EU-candidate nation.
Montenegro
CKB banka
Our Montenegro winner, CKB banka, a part of the OTP Group, is the undisputed market chief on this tiny Balkan nation of round 627,000 and has pressed forward with digitalization and innovation. When it comes to belongings, CKB reached greater than €2.1 billion and a market share of virtually 28%.
North Macedonia
Komercijalna banka
In North Macedonia, Komercijalna banka is likewise properly forward of its opponents with a market share of properly over 30% on this nation of 1.8 million inhabitants. Throughout 2025, Komercijalna banka was permitted for membership within the Single Euro Funds Space (SEPA) scheme and formally began offering prospects with the choice to make use of SEPA FX funds in euros from October 2025.
Poland
PKO Polski
Poland’s powerful and aggressive banking market noticed its largest financial institution, PKO Polski, with a market share of 15.7% whereas nonetheless 30% state owned, edge out its many worthy rivals. The financial institution, like others in Poland, has benefited from being primarily based in Europe’s most-dynamic financial system. Final yr, financial institution belongings reached over 500 billion Polish zloty (greater than $139 billion), with web earnings after changes reaching 8 billion zloty. Company finance revenue was up nearly 9%, and retail lending grew at a double-digit charge. With ROE at 19.8%, PKO Polski boasts a strong capital base with Tier 1 at almost 16.3%.
Romania
Raiffeisen Financial institution
It was a giant yr for Raiffeisen Financial institution in Romania, and the financial institution is but once more our nationwide winner. Final yr noticed whole belongings attain 81.5 billion Romanian lei ($18.8 billion) for the primary 9 months of 2025, 10% up on the identical interval in 2024, Buyer deposits had been up 12% to 63.8 billion lei, unfold throughout the financial institution’s 350 branches and its rising digital footprint. The financial institution additionally arrange a particular SME division geared toward servicing this key factor of Romania’s financial system. In March 2026, the financial institution emerged as winner within the race to purchase Garanti BBVA Group Romania, costing Raiffeisen €591 million and making the newly merged group Romania’s third-largest financial institution.
Serbia
Banca Intesa Beograd
In Serbia, amongst sturdy competitors from the likes of OTP, Raiffeisen Group, and UniCredit, Banca Intesa Beograd is our winner. The largest participant in Serbia, Banca Intesa is a part of worldwide banking group Intesa Sanpaolo, strategically current in 36 nations. The financial institution is strongly dedicated to digitalization. Among the many financial institution’s improvements final yr, it turned the primary financial institution in Serbia to introduce minibonds as a brand new technique of financing SMEs, an necessary a part of the fast-growing financial system.
Slovakia
Slovenska sporitelna
In neighboring Slovakia, Slovenska sporitelna is performing very properly in a aggressive, foreign-bank dominant monetary sector, being the biggest financial institution in belongings and having a 31% market share. It has over 2 million shoppers—together with retail shoppers supported by Slovakia’s largest retail distribution community—and is strongly centered on expertise and innovation, with its George banking app, the nation’s hottest, utilized by over half the financial institution’s prospects.
Slovenia
NLB (Nova Ljubljanska Banka)
NLB (Nova Ljubljanska Banka) retained its place as market chief in Slovenia, a affluent nation with a inhabitants of simply over 2 million. The financial institution’s buyer base stands at 737,000 folks, supported by 69 branches and in depth digital attain: some 60% of that buyer base, with a goal of 80% by 2030. Whole belongings in 2025 stood at €19 billion, pretax earnings at €427 million, and ROE a good 15.6%. The financial institution has bold enlargement plans, aiming by 2030 to greater than double its stability sheet to €50 billion and double its earnings to over €1 billion, with an enlargement of enterprise throughout Southeastern Europe as one of many financial institution’s major priorities.
Turkey
Garanti BBVA
Garanti BBVA wins our greatest Turkish financial institution award. The fifth-largest financial institution by belongings, with 2.6 trillion Turkish lira ($60.5 billion), it has the biggest buyer base—some 30 million—and presents complete, well-integrated, and more and more digitalized monetary providers. The financial institution has confirmed itself to be extremely revolutionary, final November launching Turkey’s first-ever biodiversity blue bond. Early in 2026, the financial institution teamed up with Mastercard to launch a brand new AI-powered digital procuring assistant. For 2025, the financial institution stories web revenue of almost 111.3 billion lira. Whole belongings reached greater than 4.5 trillion lira (with buyer deposits greater than 3.1 trillion lira, a 50% YoY improve over 2024). Lending stood at almost 3.5 trillion lira.
Ukraine
JSC PrivatBank
Ukraine’s big, state-owned JSC PrivatBank continues to dominate the monetary sector with a 23% market share centered on mass-retail and company enterprise. The financial institution has over 19 million prospects and 1,200 branches. Earnings after tax in 2025 had been 19% up at 29.1 billion Ukrainian hryvni ($687.4 million).
The submit World’s Best Banks 2026: Central & Eastern Europe appeared first on International Finance Journal.
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