?iriac Bank is faring better

?iriac Bank is now in a better position, having a healthy balance and better assets, Anthony Van der Heijden, the bank’s chairman, stated.

He says that results of the restructuring process the bank underwent over the last months “will show this year.” According to preliminary data, ?iriac Bank operational profit was 650 billion lei last year, up 55% against 1999 and 21% higher than the bank’s budget had estimated, namely 540 billion lei.

Following the process of credit provisioning, the bank posted losses of 450 billion lei in 2000, according to Romanian accounting standards. The bank’s president stated that losses would be entirely offset this year, when profit is estimated to reach 800 billion lei.

“The increase of provisions constituted in 2000 triggered a risk decrease and a more profitable credit portfolio,” said Anthony Van der Heijden.

The bank will not distribute dividends for the previous financial year, as it did not in 1999, but losses derived from this decision will be offset in 2002, the bank’s chairman maintained. He says the bank has not given small shareholders reasons for satisfaction over the past two years, but this situation will change soon.

Anthony Van der Heijden was appointed the bank’s president by the main shareholder, businessman Ion ?iriac, in 1999. His mission is to improve the bank’s situation and to make ?iriac Bank the best Romanian private bank. Van der Heijden used to manage the Romanian operations of Dutch bank ING, which he succeeded to take to the top of the Romanian banking system.

Van der Heijden estimates he achieved the major strategic targets of 2000, which were the implementation of a new organisational structure, the improvement of the managing team and the launch of new banking services and products.

“More important than that was our ability to conclude the previous financial year with a stable balance. Thus, bad credits stood for an insignificant share of the bank’s total credit portfolio,” the bank’s official stated.

Last autumn, ?iriac Bank was the target of rumours reporting that its financial situation was allegedly unstable. “The way we solved that crisis confirmed that the bank is sound,” said Van der Heijden.

The development strategy for this year includes the implementation of a new IT system and the expansion of its own ATM and POS network.

The bank targets small and medium-sized enterprises and natural persons. The bank also intends to use mobile telephony success in Romania, introducing mobile banking services.