Garanti: We prefer to grow organically in Romania

Garanti, one of Turkey’s biggest financial groups, prefers to pursue a strategy of organic growth in the future in Romania after last year it turned the local branch into a subsidiary licensed by the Romanian central bank, and acquired three NBFIs (non-bank financial institutions) from American-held GE Money, with whom it used to have a joint-venture in the region.
“For now we are more comfortable with our operations growing organically. It is not a good time for buying. Today one and one does not necessarily equal two,” says Zekeriya Ozturk, executive vicepresident of Turkish group Garanti in charge of international operations.
Apart from Romania, the Turks also have operations in the Netherlands and Russia.
“We only have retail operations in Romania, though,” Ozturk says.
Currently Garanti has EUR1.8 billion worth of assets on the Romanian market, with EUR1.5 million being accounted for by the bank and EUR300 million by its three NBFis dealing in leasing, consumer loans and mortgage loans. The bank last year ranked 14th on the Romanian market, having climbed fast in the last few years as its assets grew. In December 2008 the bank ranked 23rd, and had a 0.6% market share. In December 2010 it had reached 1.4%.
The head of Garanti’s operations in Romania, Murat Atay, 39, last week announced the first quarterly profit posted by the bank since the launch of retail expansion five years ago, EUR2.4 million.