Europeen Bank ( next article)

* Indrek Neivelt, chairman

www.hansa.ee HUNGARY

OTP Bank

Strategy: Still the leading bank in Hungary, OTP has moved strongly to augment its dominance of the retail market by developing new products. That may be necessary in the face of fierce competition in what may be central Europe's most overbanked market. Recent legislation increased opportunities for portfolio management; OTP already controls 25% of domestic funds under management.

Innovation: OTP has introduced many new products in recent years, including new types of retail loans and Internet banking. The bank made its first cross-border buy-of Slovakia's Investicna a Rozvoja-in December 2001. It is believed to be eyeing further opportunities in Romania and the former Yugoslavia.

Financial strength: Boosted by a recovering economy and strong growth in assets, preliminary after-tax profits rose 18.3% in the year ended December 2001. ROE stood at 25.8% in the fourth quarter.

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* Sandor Csanyi, CEO

www.otpbank.hu

KAZAKHSTAN

Kazkommertsbank

Strategy: Kazkommertsbank bestrides what is by far the most advanced of the central Asian republics.The bank's traditional customer base is the country's large and medium-size companies-and in an economy that boasted growth of around 13% in GDP during 2001, those clients have proved lucrative. But that growth is swelling private pocketbooks, too, and Kazkommertsbank is actively developing its retail banking network.

Financial strength: Net income rose by 31% in the year ended December 2001. Loan growth helped, but it was a 78% jump in fee and commission income that provided the biggest boost.

Of note: The November 2001 sale of 33% of nearest rival Halyk Bank to an industrial consortium looks to have stymied any hope of a merger with

Kazkommertsbank.

* Askar Alshinbaev, CEO

www.en.kkb.kz

LATVIA

Parex Bank

Strategy: Parex has an enviable record of developing a wide range of services for companies and individuals in Latvia-and turning them into a profit. It's using a strong domestic platform to reach out into the wider Baltic region and beyond. While the bank aims to grow its portfolio across the board during 2002, a particular target is home loans, which president Valerijs Kargins hopes to increase by 20% this year. For now, the bank has put on ice its search for an international strategic partner.

Innovation: Parex has demonstrated rare expertise in capital markets, acting in international bond syndicates for borrowers such as Rabobank and the Republic of Latvia.