Banc Post to double net profit every year

Banc Post managers by 2003 intend to double net profit every year, up to over 54 million dollars at the end of 2003, and to consolidate the bank’s position on the market, by starting to manage private pension funds and to develop mortgage credit.

The bank wants to reduce the weight of fixed assets within total assets from 34.7% to approximately 22.6% and increase the profitability of own assets from 6.1% to about 20.3%, Banc Post chairman Elena Petculescu told Ziarul Financiar.

“The bank’s common development strategy for 2001- 2003 was approved by all shareholders on November 22 and the above-mentioned figures are the main targets. This will demonstrate that the bank will strengthen its position on the market and that it will continue its retail policy by launching new products and services,” the bank’s chairman stated.

The bank will also consider developing certain partnerships with various commercial banks that do not have networks, concluding conventions with several dealers for consumption credits and promoting leasing operations.

“We will focus on increasing the volume of sources attracted from customers by up to 46%, including placements, mostly as far as credits are concerned. Another market share we aim at will be represented by small and medium enterprises, which can develop businesses and contribute to the economic rally,” Elena Petculescu added.

Over the first eleven months of this year Banc Post registered gross profit worth 21 billion lei. Of total assets, which stood at 9,229 billion lei at the end of November, credits accounted for about 3,000 billion lei. Of this amount, bad loans represented 2.1%.

In October, Banc Post increased its share capital, by capitalising reserves, from 106 billion lei to 665 billion lei. Own funds currently stand at 1,301 billion lei.

At present, Banc Post shareholding structure is the following: EFG Eurobank Ergasias – 19.25%; Banco Portugues de Investimento – 17%; the State Ownership Fund – 17%; General Electric Capital Corporation – 8.75%; the bank’s employees and pensioners – 8%; SIF Banat-Crisana – 6%; SIF Moldova – 6%; SIF Muntenia – 6%; SIF Oltenia – 6%; SIF Transilvania – 6%.