Ivica ChačaturianováGabriel Hinzeller

Association of Financial Intermediaries and Financial Advisors

30. April 2008, CIFA - VI. International Forum

Base Factors

• Market- Maastricht criteria- Euro expectations and fears- reforms (necessity & challenge)

• Economy- change of interest rates- earnings growth- tax benefits- strengthening of Slovak crown- increase of real estate prices2

Financial Market Development

• Banking- increase of motgages - higher risk products- specialised banking products

• Investment - euro-convergent funds- longer terms investments- savings plans- guaranteed products- real estates3

Financial Market Development

• Insurance- unit linked products- bankassurance- effects of demonopolisation of MTPL (2002)- effects of pension reform in life assurance

• Financial services- improving the quality through education- competition- higher requirements of clients- responsibility4

Slovak Pension Reform (2004-2006)

• very well managed, now changes of terms

• experience (legislation, business, professionalism, ...)

• II.pillar is not a cure-all

• raise of consumer responsibility

• better consumer financial literacy

• improvement of other life/pension products5

Consumer Behaviour

• higher consumer literacy

• modern ways of thinking

• experience from abroad

• long term regular savings

• indebtedness

• role of financial advisors and distributors

• drawbacks and speed6

Structure & use of incomes...

Spending29%

Spending&pay loans19%

Spending&save41%

Spending&pay loans&save

11%

for bad times20%

flat reconstruction

12%education

10%improving household

10%

car4%

holiday8% help for family

8%

furniture7%

funeral6%

pension6%

marriage5%

hifi, TV, etc.4%

7

Assets

Time deposits64%

Life insurance10%

Mutual funds17%

Pension companies

6%

Supplementary pension co

3%

Bank loans91%

Never-never7%Leasing

2%

Assets & liabilities of households

Liabilities

8

Loans to households (% of GDP)

9,40%

12,20%

14,40%15,30%

2004 2005 2006 1.H.2007

Structure of loans

Mortgage loans70%

Consumer loans16%

Credit cards, CA loans6%

Others8%

Breakdown of loans

9

2006

Banks83%

Brokerage houses1%

Mutual funds7%

Insurance7%

Pension co1%

Supplementary pension co

1%

Banks80%

Insurance8%

Supplementary pension co

1%

Mutual funds8%

Brokerage houses

1%

Pension co2%

2007

Market share of financial institutions on assets in %

10

Sources of information

• www.statistics.sk

• www.nbs.sk (National Bank)

• www.mfsr.sk (Finance Ministry)

• www.etrend.sk (economic weekly)

• www.hnonline.sk (economic daily)

• ...

11

12

KD Investments, správ. spol., a.s.Gabriel HinzellerLaurinská 3811 03 Bratislava, SlovakiaTel.: +421 2 5910 4908Fax: +421 2 5910 4910E-mail: gabriel.hinzeller@kd-group.skwww.kd-group.sk

13