Raiffeisen aims to double profit

Raiffeisen Bank Romania will invest about 40 million euros in growth this year, which is 20% more than the investments made in 2002.

The institution aims to double profit this year, up to 9 million euros, to push assets up more than 60% and, implicitly, boost its market share. Raiffeisen Bank Romania saw a 55% surge in assets last year, to 1.03 billion euros, with loans accounting for 65% of this amount, the bank’s president Steven van Groningen said.

Also last year, the bank managed to break even, for the first time after taking over Banca Agricola (BA – Agricultural Bank), and reported net income worth 4.6 million euros, according to the international accounting standards. Steven van Groningen says the bank’s main goal is to increase the market share, at the same time improving profitability to an acceptable level. The bank estimates to double profit in 2004.

“We will outgrow the rest of the banking system. We want to rank third on the market, without having to discuss our position with number four. This means we have to get some 10%-15% of the market,” van Groningen explained.

According to the data released by the bank, Raifeisen controls 7.2% of the banking system assets, a market share of 8.1% in terms of loans granted to the population and a similar level for the corporate credits. The results for 2003 show a credit boom, both for natural persons and the corporate segment. The bank has managed to exceed the dynamic posted by the other lending institutions.

Heinz Wiedner, a member of the Raiffeisen International Board, finds the lending evolution to be normal, given the rather low loan level inherited from BA. oana.nuta@zf.ro