Crisis freezes BCR's territorial expansion plans

BCR, the biggest bank on the Romanian market in terms of assets, has dropped plans to exceed the mark of 700 branches and agencies by the end of 2010, intending to end this year with a 668-branch territorial chain, from 667 at present.
The extended recession and the collapse of retail loan sales have led to a new postponement of the older target of 700 branches.
At the end of 2009 BCR had 661 branches dedicated to individuals and small firms, and continued to improve its territorial coverage in the first half of this year.
According to a business plan version included in the prospectus of the financing programme on the Luxembourg market last summer, BCR was planning to expand its chain to 728 branches in 2010 “in order to make it easier for customers to access financial services and to preserve its market share in certain geographic areas.”
The bank, however, went back on its target, informing investors that the 2010 target would remain 668 branches.
Since the effects of the economic crisis started to emerge, the territorial expansion plan has been adjusted several times. 10 branches left over from the 2008 programme were opened in the first part of 2009. In February last year, the BCR management was still counting on reaching the 700-branch mark by the end of 2009, which never happened.