History
Tatra banka, a.s. was established in 1990 as the first private bank in Slovakia and by its name, fierce determination, and ambitions, it followed the traditions of the oldest financial institution in Slovakia - the original pre-War Tatra banka. That financial institution operated on the territory of the today´s Slovakia already before the World Ward II, and afterwards, due to the changed political situation in Czechoslovakia and due to establishment of the centralized Czechoslovak State Bank ("CSSB") in 1950, Tatra banka was included in CSSB and put into dormant position. It means that it has never been dissolved, but stopped to do any banking operations. Only the new political situation after 1989 allowed the newly established Tatra banka, a.s. to take over the name of the bank which was known in Slovakia from history, and thus could start the modern era of Slovak banking. It should be reminded that Tatra banka, a.s. had actually used only the name, but had not assumed any liabilities and receivables of the former Tatra banka.
The modern Tatra banka, a.s. was founded according to the Law No. 158/89 Coll. on banks and saving banks. Its foundation was closely monitored by the Slovak economic circles and the wide public, which was reflected by vivid purchase of its shares by individuals. From the very beginning, the objective is to create a medium-sized universal bank with wide scope of banking services for clients from all target groups of the population. Upon completion of the internal organizational preparations, Tatra banka, a.s. commenced its activities in December 1991. The first branch of Tatra banka, a.s. was opened in Bratislava, Vajanského nábrežie. That office later served as the address of the bank´s headquarters until relocation to the new Tatracentrum building in Hodžovo námestie 3, in 2001.
In November 1992, the bank´s second branch was opened in Herlianska ulica, Bratislava. Already at that time and ever since, the clients have been able to dispose of their accounts in any Tatra banka´s branch on-line, through computer connection with the headquarters. The connection of the bank to the SWIFT international payment system in 1992 started expedient and safe execution of payment instructions and interbank transfers. In addition, the bank implemented the Reuters Dealing System, the use of which allowed direct conclusion of prompt forward exchange transactions.
In the second half of 1993 and during the year 1994, seven new branches were open. All of them were also directly connected with the central data processing, and the portfolio of products was extended by the offer of giro saving services on current accounts. The bank started to offer also Thomas Cook traveling checks, building savings offered by Prvá stavebná sporiteľňa, and electronic telebanking. At that time, realisation of the Tatra banka card project started to gain great importance. The first step was installation of ATMs in the Bratislava, Lučenec, and Košice branches, and was accompanied by issuing debit cards to clients. Tatra banka obtained a license granted by the VISA International card company, as an addition to the Europay license. Tatra banka became the only bank in Slovakia which issued, as a dealer of Raiffeisen Zentralbank Österreich, VISA international credit cards for its clients. It signed also a contract on cooperation in issue and acceptance of American Express debit cards and checks. At the same time, Tatra banka became one of the founders and shareholders of Autorizačné centrum Slovenska a.s., whose main task was to ensure effective authorisation of card operations for Slovak banks, and to actively contribute to development in use of debit cards as payment instruments in Slovakia. The bank had also markedly boosted its position in the interbank foreign exchange and money market, and thus became one of its most significant participants.
The year 1995 brought several positive features and winnings for the bank. Tatra banka operated as the only bank with access to all three international refinancing programs (Exim bank, PHARE, and EIB), and became an agent - the only agent for a long time - of Western Union, offering monetary transfer service with immediate remittance of funds to the countries of the whole world within 10 minutes, and the portfolio of its debit cards was extended by the Eurocard/Mastercard debit card as the first international card to the current Crown account for both individuals and legal entities, which could be used locally and abroad. What concerns the treasury, the growing number of important business clients required improved care of such clients. Therefore, within dealing, the Customer Desk department was established, that focused on business activities with the clients and to introduction of new products in view of the growing client´s needs.
In 1996, Tatra banka, as the only bank in Slovakia, decided to take part in subscription of the first eurobonds in Slovak Crowns. In July 1996, the European Bank for Reconstruction and Development issued bonds in the total nominal value of SKK 750 million (EUR 24,895,439.16)1, an shortly afterwards, an additional contribution was provided by International Finance Corporation by issuing bonds in the nominal value of SKK 1.2 billion (EUR 39.83 million)1. In this way, the Slovak Crown was added to the growing number of currencies from the emerging markets where eurobonds are issued. Tatra banka, as the only Slovak bank, participated in both historically very important deals.
During 1996, Tatra banka opened 9 new branches on the territory of Slovakia, and in the end of that year, the clients were served by total 22 branches. However, the clients were able to use the bank´s services also by phone. Via the modern and unique service in Slovakia - Tatrafón, the client could obtain the information on the balance on the account 24 hours a day.
In 1996, as the only bank in Slovakia, Tatra banka had access also to all 4 international refinancing programs (PHARE, Japanese EXIM bank, EBOR, EIB) and maintained its leading position in the foreign exchange market by innovated treasury products. In November 1996, the reputable Standard & Poor´s rating agency evaluated for the first time 5 largest Slovak banks, and the rating of Tatra banka represented at that time the highest level in the Slovak Republic. In the next following year 1997, Tatra banka confirmed its long-term leading "pioneer" post in support of electronic ways of communication. As a user of one of the state-of-the-art telecommunication networks in Slovakia, it maintained its first position in automation of banking services and it was the first one to implement banking services provided via telephone and internet. In July, also as the first bank in Slovakia, Tatra banka introduced a new service in the market - sending bank statements via internet, followed in the next year by the option to obtain immediate information on the balance on the account and to give instructions for transfer from the account, and implementation of the DIALOG telephone service which became most popular among the clients.
In January, the bank provided a syndicated loan in the amount of USD 13.5 million to the Slovak-Kazakhstan firm JSC-ANACO (the mayor shareholder was Nafta Gbely, a Slovak company). By that form, it was the first time when the Slovak bank provided a syndicated loan in the European currency to a foreign company. As the only bank in Slovakia, Tatra banka also participated in an installment syndicated loan in the amount of USD 135 million with a state guarantee, which was provided to Železnice SR (Slovak Railways) and organized by a syndicate of international banks. In that year, the bank prepared and installed the first version of its web site www.tatrabank.sk which provided the basic information on banking products, services, and branch network. In April 1997, Tatra banka was connected to the VISA International network, whereby its ATMs became the most universal machines in Slovakia. The bank installed the highest number of cash terminals which realised almost one third of the turnover made by debit cards in Slovakia.
In 1998, the bank achieved excellent economic results, thus strengthening its position of the largest completely private bank in Slovakia. Its network was extended to 36 branches and in May 1998, they started to co-operate in sale and repurchase of mutual fund shares managed by its subsidiary Tatra Asset Management. Tatra banka, as one of the first banks, started also to mediate purchase and sale of securities in foreign capital markets. The scale of local and foreign debit cards was extended by the VISA Electron debit card which is still very popular and most used international debit card. 1998 was also the year of preparation for the new euro currency. Tatra banka started to open accounts in this currency on 1st January 1999 even before official introduction, thus allowing the Tatra banka´s clients to inform their foreign business partners about numbers of their euro accounts. Later, in connection with conversion to the new European currency on 1st January, 2002, Tatra banka arranged for smooth transition of accounts maintained in the EU member states currencies to euro. All clients´ accounts were converted free of charge. In the next following year, the good financial position as well as the top services were the reason for many awards and acknowledgements granted to the bank by independent world magazines - including the "Best Bank in Slovakia" award granted for the fifth time by the Euromoney magazine, "Best Slovak Bank of the Decade" announced by the Central European magazine, and the Bank of the Year title awarded by the Trend weekly for the second time during the two-year existence of this award. In October 1999, Tatra banka received, for the b-mail service, a prestigious first prize in the category "Best On-line Banking Product of the Year" in the annual Technology for Retail Banking Excellence Awards by the world renowned Banking Technology magazine. During 2000, the bank prepared a concept of communal financing, with provision of the first communal loans, and Tatra banka had also significantly extended its strategy in financing small and medium enterprises - a year later, loan teams were created for them in the regional branches in Košice, Bystrica, Žilina, and Trnava, preparing the applications for loans directly in the region. In the electronic banking services, the bank has extended its offer by a new Mobile banking service allowing to obtain information on the balance and movements on the account, and also placing payment instructions via mobile phone.
Since mid 2000, Eliot, the first Slovak internet bank developed and supported by Tatra banka, started to provide the electronic banking services solely via the internet. The monetary and foreign-exchange transactions concluded in real time via the internet started to be realised by the i:deal service. That still allows the clients to agree on individual interest rates for conversions of foreign payments, for transfer of funds between accounts, and also for Crown deposits, without visiting the branch or calling the dealer to the bank. Expansion of the Tatra banka´s branch network continued in 2000 by opening 9 new branches and 10 offices. Thus, in the end of the year, the clients had available 69 branches in the whole Slovakia - and in the last quarter 2000, Tatra banka started to provide mortgage loans.
The new authorization and processing software for debit cards allowed Tatra banka, as the first bank in Slovakia, to introduce the true VISA credit card in the bank market. The offer of credit cards was extended in November 2000 by the MercedesCard with many advantages and discounts for the client of Mercedes, in addition to the standard function of debit cards. The first VISA virtual credit card in Slovakia was launched, allowing the clients to do safer purchases via the internet.
Stabilization of the interbank environment resulted in renewed trades with FRA (forward rate agreement). Tatra banka was the first bank in the market, that started to actively quote the given instrument. At the same time, it was one of the main initiators in founding the system of creators of the market for treasury bonds in the Stock Exchange in Bratislava. The year 2000 was also a year of launching the Investment Navigator web site - an on-line advisor for the clients in investment decisions. In the end of 2001, the bank operated 88 branches in whole Slovakia and employed 2,462 employees. Via its network of representations, the bank started to provide a new product - the supplementary pension insurance based on strategic co-operation with Pokoj DDP.
The bank has for a long time maintained the first position in provision of high quality debit cards, which is supported also by the successful product - the VISA credit card. Tatra banka, as the only bank, allowed the holders of credit cards to have online access to information on all realised transactions via the Internet banking. In 2001, the offer of debit cards was extended by the prestigious Diners Club international card being the oldest brand of debit cards in the world.
In 2001, Tatra banka received a significant professional "Best Bank in Slovakia" award from Euromoney and The Banker, the international renowned periodicals, and thus became the "Bank of the Year" for the fourth time in a row in rating of the Trend weekly. In 2002, Tatra banka had more intensively focused on offer to individual clients, resulting in further extension of the network of commercial representations to the total of 94 branches. In order to provide more targeted care of medium corporate clients, it created commercial centers. Via 15 commercial centers in the regions, the needs of particularly the small and medium enterprises are better satisfied.
In that period, Tatra banka started to successfully provide new commercial financing products, based on the EU pre-entry aid. Thanks to the positive development in this direction, the bank provided pre-financing and financing certain projects connected with support funds as PHARE, ISPA or SAPARD. On 1st January, 2002 Tatra banka became a member of the International Factors Group based in Brussels, which belongs to the largest factoring companies, associating members from the countries all over the world.
In the end of 2002, Tatra banka commenced exclusive co-operation in issuing debit cards with Metro Cash & Carry Slovakia. The extended co-operation in acceptance of debit cards with the Diners Club, JCB, and Cetelem card companies ensured for the bank the largest portfolio of cards that may be accepted by business partners via cash terminals.
In July 2002, the Internet banking was extended by a new supplementary service to the current account - i:deposit. In the month of October, a new type of identification, authorization, and authentication tool was launched - i:key which is based on the electronic signature technology and contributes to security of the electronic payment transactions.
Together with JP Morgan, Tatra banka was a leading manager of the issue of Eurobonds for Železnice Slovenskej Republiky (Slovak Railways) in the total amount of SKK 6.84 billion (EUR 227.04 million)1. The issue represented the first eurobond issue in Slovak Crowns of the issuer based in the Slovak Republic and was the largest eurobond issue in Slovak Crowns in 2002.
In turnovers realised by debit cards at business partners, the bank maintained its leading position among the banks in the Slovak Republic with the 38 % share in the banking market. In the month of December 2003, Tatra banka as the first bank in Slovakia reached the turnover via cash terminals exceeding SKK 1 billion (EUR 33.19 million)1. In provision of mortgage loans, the bank still survived among the top in the Slovak market and recognized record growth in volume and number of provided loans. The bank´s offer in the second half of 2003 was extended by new banking-insurance products: insurance of immovable properties serving as collaterals for mortgage loans, and investments products with life insurance, all developed in co-operation with the insurance company Uniqa poisťovňa, a.s., and as the only bank, Tatra banka developed and started to sell sophisticated banking-insurance products in its own name, which could be purchased only in the network of its own business outlets. In the market of foreign exchange options, Tatra banka played a leading role among the local banks. Tatra banka was again one of the leaders and market creators, particularly in the forward rated agreement trades and interest swaps. Tatra banka was a market creator for the Slovnaft and Slovakofarma shares and also for all treasury bonds.
In 2003, Tatra banka still remained the first and the only bank in the Slovak market, offering the on-line trading to its clients. Almost 40 % of the total volume of trades in 2003 were realised via the i:deal, which represented the amount of SKK 12 billion (EUR 398.32 million)1. Tatra banka maintained its long-term leading position in corporate transactions also in 2004, and launched several new products in the market (loans with an EXIMBANKA guarantee, leasing of immovable properties, etc.). The year 2004 was also marked by strong orientation to retail. The bank opened new branches and in the access to the client, it started to apply the principles of the certified "Consulting and Care System". The financial consulting was focused mainly on investment products. In the end of the year, Tatra banka cooperated with Allianz - dôchodková správcovská spoločnosť and thus entered the IInd pillar of the pension reform. In 2005, in the extraordinary dynamic market of retail and corporate products, Tatra banka was able to defend its position among the three most successful banks in many areas, and also the leading position in the market. In 2005, the Eliot service was closed and was replaced by the Internet banking. In the rating for the year 2005 by Global Finance, the renowned economic magazine, Tatra banka received the title "Best Consumer Internet Bank" for the fourth time in a row, which reflected the bank´s innovative approach to use of the internet banking. In that year, the bank extended the functionality of internet banking by several new functions. The bank also confirmed the image of successful product innovator also in respect of deposit products. During the year, its offer of deposit products was extended by the Guaranteed Investment. For the Private banking clients, in co-operation with Tatra Asset Management, the bank introduced a unique concept of a series of three actively managed fund strategies under its own brand Private Profile Funds, and later launched in the market a new generation of investment packages under the name Profile Funds also for retail clients. Currently, Tatra banka is a modern universal bank offering complex banking services and solutions in management of funds for corporate and individual clients. As the first private bank and currently the third largest and for long the most effective bank, it has become one of the dominant players in the Slovak banking market during its existence in Slovakia. Via its network of more than 140 business outlets, the bank operates in all regions of Slovakia and employs more than 3,200 employees. It has for long time maintained its dominant position in providing loans to corporate clients, electronic banking, asset management, mortgage loans, debit cards or private banking.
The activities of its subsidiaries operating within the Tatra banka Group, namely Tatra Asset Management, Tatra Leasing, and Doplnková dôchodková spoločnosť Tatra banka, a.s. are also very successful.
Based on the good stability and good economic results, the bank has been rating high by the international and local renowned periodicals - recently, according to the Trend weekly, Tatra banka is the "Bank of the Year 2005". Similar high rating was awarded to the bank in the last years also by the Banker, Global Finance, and Euromoney magazines. Tatra banka is one of the most successful subsidiaries of the Raiffeisen Banking Group in the Central and Eastern Europe. In these countries, Raiffeisen Banking Group operates as one of the leading banking groups.
In February 1885, Tatra, the Upper-Hungarian bank, was founded. The establishment of a strong Slovak financial institution in Hungary was a very daring idea in the end of the 19th century. It was first mentioned by the Slovak businessman Rudolf Krupec, a native from Bystrička at Martin.
Already in the beginning of 1884, Rudolf Krupec initiated the first meetings which discussed the proposal to establish a bank which might become a pillar of all financial institutions in Slovakia and which would support also Slovak enterprises. The result of these historical negotiations was a proclamation to the Slovak intellectual circles and businessmen: (quotation) "to join the initiative of the founders of the Upper-Hungarian bank which would be named Tatra, which is easy to pronounce in all languages, and which would be based in Turčiansky Sv. Martin." The first shareholders - founders of the bank - included scholars, businessmen, farmers, and traders: Štefan Treskoň, a priest in Kolárovce, Anton Nádáši, a lawyer in Dolný Kubín, Jozef Országh, a lawyer in Dolný Kubín, Matúš Dula, a lawyer, Ján Jesenský, a lawyer, Pavel Zoch, an Evangelic priest in Záriečie, Dr. Gustáv Zechenter, a doctor in Kremnica, and many other famous personalities that are already forgotten. It is a proof that foundation of Tatra banka was an event reaching far beyond the financial circles, and became an event of national significance. The next following year proved that Tatra banka satisfied the expectations of its founders and today, it is a financial pillar that was not even dreamt about by its original shareholders. The arguments of the Slovak founders of Tatra banka prove their sense for reality and actually modern thinking, because they understood that developed and strong monetary services were one of the basic prerequisites of economic and moral development.
Before 1918, the monetary services were the most successful area of the business activities of the Slovak capital. Tatra banka played an important role at that time. It provided loans to Slovak enterprises, accepted deposits, concluded almost all banking transactions, discounted notes and other securities, provided insurance, established business and industrial companies. In every place of its operation, it left a deep trace also in culture and has always supported not only the business but also the social life. Connections of Tatra banka with the personalities of the entire Slovak cultural circles were evident already at foundation of the bank in 1885. The bank maintained that spirit also in the entire next period, as Tatra banka is connected with such personalities as Pavol Országh-Hviezdoslav, a poet, Jozef Gregor-Tajovský and Janko Jesenský, writers.
In the period after 1918, Tatra banka became the largest Slovak bank with wide network of branches and capital shares in many enterprises. During the whole inter-war period, Tatra banka had gradually extended the network of hotel and cinema enterprises within its corporate concern.
In the process of nationalization in 1946, Tatra banka merged with the Slovak Bank, at that time the second larges bank in Slovakia - creating Slovenská Tatra banka. Due to the changed political situation in Czechoslovakia and due to establishment of the centralized Czechoslovak State Bank ("CSSB") in 1950, Tatra banka was included in the CSSB and put into a dormant position. It means that it has never been dissolved, but stopped to do any banking operation.
