Demirbank Romania moves on despite problems in Turkey

Although the situation of Demirbank TAS, Demirbank Romania’s main shareholder (62.5%) in Turkey is uncertain, as take-over negotiations are in progress, things in Bucharest seem to move on. Shareholders at the end of last week approved the capital increase and the development strategy for the next period.

Demirbank Romania shareholders – Turkish group Demirbank TAS, International Finance Corporation (IFC) and three of the Financial Investment Companies (SIF), during the last General Assembly approved the increase of the share capital from 215bn lei to 404bn lei. The increase is to be done by reinvesting net profit and by the inclusion of reserves.

Furthermore, shareholders approved the bank’s last year financial results and its short-term development strategy.

According to data provided by the bank management, Demirbank Romania last year registered 91.5bn lei in gross profit, in compliance with the International Accounting Standards. The bank’s assets on the same date reached 1,803bn lei. The solvency rate, computed in accordance with National Bank of Romania’s norms, went up from 39.08% on December 31, 1999 to 47.17% at the end of 2000, keeping above the minimal limit, 12%, required by NBR.

“We want to keep expanding in 2001 by opening new branches in Romania. At the same time we are planning on developing the banking product and service range using the latest IT equipment available. We’re hoping to meet the demands of our clients this way, by providing them with quick, efficient tailor-made banking services,” said Talip Selcuk Saldirak, Demirbank Romania’s chairman of the board.

He explained that this was the reason why Demirbank Romania had expanded its territorial network by opening five new branches in Ploiesti, Braila, Cluj-Napoca, Piatra Neamt and Bucharest (Magheru), so that it now has 10 branches.

“We are the first bank in Romania to have introduced Mobile Banking services by WAP phones in March 2001. This new service allows our clients to visualise their accounts with the help of the mobile phone and is as safe as Internet banking,” the bank official says.

Demirbank Romania was established in 1997, being one of the first Turkish banks to have come to Romania.

At the moment, its situation is up to the developments in Turkey, given that the Regulating Authority and three possible investors are in talks. British banking group HSBC, the world’s second-largest bank in terms of market capitalisation, early in March submitted a bid for Demirbank TAS, the largest of the 13 Turkish banks under the control of government authorities.

The Turkish Agency for Regulating and Supervising the Banking Activity announced that talks were also conducted with Italy-based Unicredito Bank and with Dogan Group, a Turkish banking and media group.