Piraeus Bank Romania plans to grow by itself

Greek Piraeus Bank is not planning, at least not for the time being, to expand on the Romanian market by buying another bank or by a merger, as its development plan for the next three years was built around an organic growth. It has some $2 million scheduled for net investments this year, the bank chairman Emanuel Odobescu says.
“There’s no merger or acquisition plan at the moment, particularly because the market hardly offers such an opportunity. Our development plans target expanding the network by 5 or 6 offices this year, by 10 offices in 2004 and by another 10 in 2005, ” Odobescu told Ziarul Financiar.
The bank’s network currently comprises 5 offices only.
Odobescu added the bank was considering an increase in assets from 104 million euros at the end of 2002 to 172 million euros in 2003, then to 240 million euros in 2004, so that the assets of the bank would come to total 333 million euros by 2005.
Piraeus Bank Romania nearly doubled its assets last year, which went up from 60 million euros to 104 million euros, while the net profit logged was worth nearly 5.05 million euros compared with the 100,000 euros in 2001. Actually, 2001 was the year when the bank broke even, after having posted losses in 2000, its first year in business on the Romanian market.
“Last year’s growth is obvious and shows we are interested in both the retail segment, which registered positive developments (launch of cards and credits for buying or refurbishing a home) in 2002, as well as in crediting large companies. At the same time we have been and will remain concerned about developing crediting product lines for SMEs – for doctors, pharmacists, fitness specialists, and for millers, bakers and pastry specialists,” Odobescu says.
Piraeus Bank entered the Romanian market in 2000, when it bought the controlling interests in Hungarian Pater Bank.