Banca Romaneasca to direct resources towards expansion

Banca Romaneasca, a member of the National Bank of Greece Group had total assets worth 7,837 billion ROL (192 million euros) at the end of June, 19% higher if compared to the end of year 2003. In the first six months of this year, the bank derived net profit standing at 145.3 billion ROL (3.5 million euros). At the end of 2003, net profit had totalled 9.6 billion ROL. The bank’s profit at the end of the first quarter reached 103.5 billion ROL.

“Banca Romaneasca continues to develop at a fast pace. This is confirmed both by the financial results registered in the first six months of this year and by the growth of its portfolio of retail products through credit and saving instruments,” commented Petru Rares, the bank’s general manager and deputy chairman of the bank’s Board.

Deposits attracted from customers together with available funds reached 4,434 billion ROL (108 million euros) at the end of the first half of this year, marking a 9.5% leap as compared to December 2003.

The bank’s own equity came to 967 billion ROL (23.7 million euros), 20.7% higher against December 2003.

According to the bank’s management, the money will be directed towards supporting the bank’s development policy. “We plan to expand the bank’s territorial network by the end of this year, by adding another ten branches, while the number of ATMs will grow from 27 to 80,” Rares also stated.

At the end of last year, the largest financial group from Southeast Europe, the National Bank of Greece (NBG) Group, acquired the majority stake in Banca Romaneasca SA, currently holding 90.86% of its share capital.

Like the other foreign players, NGB has implemented corporate governance principles with regard to Banca Romaneasca, entailing the separation of administrative and executive responsibilities at management level.

Though it has been present in Romania for several years now and has tackled several expansion opportunities, the Greek bank has so far stuck to activities developed through its subsidiary, that has come to control 0.5% of the Romanian banking market.
liviu.chiru@zf.ro