CE/SEE banks continue to deliver strong results despite the headwinds
Despite geopolitical turbulence and shifting monetary cycles, banks in CE/SEE continue to outperform their Western European peers, supported by high profitability, robust lending growth and solid asset quality.
When financial markets are dominated by geopolitical headlines and economic uncertainty, longer-term trends can easily be overlooked. Yet the latest edition of Raiffeisen Research’s flagship CEE Banking Sector Report shows that one of Europe’s most compelling banking stories remains firmly intact: the continued resilience and growth potential of the CE/SEE banking sector.
Produced annually by the Raiffeisen Research network across CEE and Vienna, the report combines local market expertise with a cross-country perspective, offering one of the most comprehensive analyses of banking developments in the region.
“The CE/SEE banking sector has faced multiple shocks over recent years, yet it continues to demonstrate remarkable resilience. Despite an increasingly complex geopolitical backdrop, the region remains one of Europe's most attractive banking growth stories. The regional profit pool remains around its historic highs of EUR 30-32 billion in 2025 and 2026 and is expected to rise toward EUR 40 billion by 2030.”
– Gunter Deuber, Head of Raiffeisen Research, Chief Economist, RBI
CE/SEE banks continue to outperform
While growth across Europe is slowing, CE/SEE economies continue to enjoy a clear growth advantage. Excluding weaker outliers (Romania & Slovakia), regional GDP growth is expected to average around 2.8% in 2026–2027, well above the euro area.
This supportive economic environment continues to translate into strong banking-sector performance.
Key findings from this year’s report include:
- Return on equity (RoE) of 15–16% compared with around 9% in the euro area
- EUR 31.5 billion regional banking profit pool in 2025, close to record levels
- Double-digit lending growth expected to continue across much of the region
- Double-digit lending growth expected to continue across much of the region
- Eight of the twelve core CE/SEE banking markets generate an RoE of 14–15% or more
The results underline the continued convergence story shaping banking markets across Central and Southeastern Europe.
High profitability is here to stay
Although interest-rate cycles are changing and profitability may ease somewhat from recent peaks, the report shows that banks’ structural earnings drivers remain firmly in place.
The CE/SEE banking sector generated a profit pool of EUR 31.5 billion in 2025, already approaching the scale of larger Western European banking markets. Looking ahead, Raiffeisen Research estimates that the regional profit pool could rise to EUR 37–38 billion by 2030, supported by continued economic convergence, deeper financial intermediation and growing wealth-management activity.
Poland remains the region’s largest earnings contributor, accounting for around 37% of total banking profits, followed by Czechia, Hungary and Romania.
“The figures continue to show that banking in CE/SEE is not merely a cyclical success story. High profitability is increasingly supported by structural factors such as deeper financial intermediation, growing household wealth and continued convergence with Western Europe.”
– Ruslan Gadeev, Senior Analyst, SSA & Financials Research
Lending growth and asset quality remain supportive
The report also highlights the continued strength of regional lending trends.
Retail banking is expected to remain the main growth engine. In the coming years, annual growth of around 10–12% is projected, particularly in Southeastern Europe. Mortgage penetration remains well below Western European standards, leaving additional room for sustainable growth.
At the same time, asset-quality indicators remain remarkably robust. NPL ratios are close to, or even within, euro area benchmarks and far below the levels seen during previous crisis periods.
This combination of healthy lending growth and contained credit risk remains one of the defining strengths of the CE/SEE banking sector.
A flagship publication built on regional expertise
The annual CEE Banking Sector Report is one of Raiffeisen Research’s flagship publications and an excellent example of the value created by the regional research network.
The full CEE Banking Sector Report is available to registered Raiffeisen Research/RBI clients and can be downloaded here.
A summary of the CEE Banking Sector Report can be downloaded free of charge here.