ING goes window shopping

Although it is not contemplating any acquisition on the Romanian banking market at the moment, Holland-based ING financial group does not rule out the interest in taking over a large bank.

“We are not considering to buy a bank at the moment, but I can’t say we won’t be,” Ralph Hamers, ING’s Bucharest branch general manager, told Ziarul Financiar.

He mentioned that a possible interest would target a bank as large as ING, or even larger, in terms of operations on the Romanian market. “I cannot volunteer a name,” Hamers added.

At present, ING ranks fourth in the Romanian banking system, in terms of assets, after BCR, BRD-Groupe Societe Generale and CEC (the Savings Bank).

Hamers specified ING was interested in a possible acquisition due to its commitment to Romania and to the results (i.e. very good) of its operations here.

ING came to Romania back in 1994. The management decided that the bank should develop by itself, that is by opening its own branches and introducing high-end products.

ING’s total underwriting on the Romanian market currently amounts to more than $800 million. Romania is ING’s most successful market in the region, second only to Poland.

The Dutch Group in Romania operates in commercial banking, insurance and investment banking.

BCR (the Romanian Commercial Bank) is the largest bank in Romania, with 30% in market share. BCR is still state-owned (70%), but the authorities announced it might be privatised in no more than two years.

BRD (Romanian Development Bank) is held by France-based Societe Generale Group, with the state holding only a residual stock (7.32% in the share capital). CEC is fully state-owned and is currently undergoing a restructuring process.

ING’s is CEC’s consultant for this process. It is yet uncertain whether the state may decide to put CEC up for privatisation. CEC could also go back to being a savings bank for the population only. ING has recently recommended that CEC should keep being a commercial bank, focusing on retail.

A PricewaterhouseCoopers (PWC) survey says the Romanian banking sector is going through a time of huge growth, with a potentially explosive growth in the medium run.

“This will provide huge opportunities and revenues for the banks capable of seeing the environment that’s changing and are ready to act as a catalyst of the expanding sector, although there will be certain high risks in the course of time,” the PWC report shows.

Total assets in the banking sector amount to some $10bn. The consolidation in this sector is largely anticipated, so that the banks are looking for the necessary critical mass to generate lots of savings and finally high revenues.