HVB still contemplating Banca Tiriac for expansion

HVB Bank keeps sizing up Banca Tiriac in view of a possible takeover, says Friedrich Kadrnoska, Bank Austria Creditanstalt vice-president in charge of the Central and Eastern European operations.

This is regarded as an alternative to continuing the organic growth strategy of the bank on the Romanian market, where it has been operating for five years now. HVB’s goals until 2006 are expanding the territorial network to 20 branches, gaining 40,000 clients and accounting for over 5% of the banking system. “HVB Group will improve its presence in Romania either by an organic growth, that is by opening new branches or by takeovers. Banca Tiriac could be one of the targets, as we are now assessing it. We will make a decision as soon as we get the results,” Friedrich Kadrnoska, Bank Austria Creditanstalt, VP, said during the fifth anniversary of HVB’s entry in Romania. The bank will have nine branches by yearend. HVB Bank Romania is considered the most profitable branch of Bank Austria Creditanstalt in the Central and Eastern Europe. Bank Austria Creditanstalt is in charge of the Central and Eastern European market for HVB and co-ordinates the largest network in the region, comprised of 900 offices in 11 countries. Kadrnoska added this part of Europe was very important to HVB Group, which had invested 370 million euros in the region since 1999, either in developing the network or in buying banks in Poland, Hungary and Serbia. HVB Bank Romania logged 300bn ROL net profit in the first nine months this year and estimates to see full-year profit 30% higher than the one reported in late December 2002, as specified by Dan Pascariu, the bank’s chairman. “Total assets have seen a remarkable surge, as well, from 12,900bn ROL on June 30, 2003 to 16,000bn ROL at the end of September,” Pascariu said. The bank had 14,500 clients on September 30, 45% more than in December 2002. HVB Bank Romania vice-president Helmut Bernkopf said the positive results of the bank in the first nine months were due to the launch of lending products for individuals, as well as to the territorial expansion of the bank from five to eight branches.
razvan.voican@zf.ro