Raiffeisen to increase capital

Raiffeisen Bank Romania will increase capital by 45 million euros to approximately 220 million euros in the first month of next year, by cash contributions from the shareholders registered until November 17, 2003.

“We will increase our share capital by nearly 1,770bn ROL to 8,730bn ROL in January and will do it by issuing 1,000 ROL par value shares,” Steven Van Groningen, the bank’s president told Ziarul Financiar.  

The subscription will be open for 30 business days, from the day after the publication of the capital increase decision in the Official Gazette. The capital increase announcement may be run in the Official Gazette’s issue early next week.

Van Groningen says this capital increase, as well as a series of subordinated loans Raiffeisen Bank Romania will contract from the parent bank and from other financial institutions are part of the strategy to support the bank next year.

Raiffeisen Bank has seen one of the fastest growth paces on the Romanian banking market this year, a speed the bank officials estimate to maintain next year, too.

“The banking assets will reach nearly 1bn euros this year and we plan to attain over 20% growth in this department next year. I think we’ll be above the banking system average,” Raiffeisen president added.

Besides the money due to come in from the capital increase and the loans contracted, the bank also plans to change its strategy for attracting deposits next year.

“We have focused on boosting lending. We’re thinking of stimulating saving next year, but not do it by means of interests but by means of the product bundles we will release.”

This is actually the bank’s first year in the black, even though the profit is not that high. This index is supposed to follow an upward trend as of next year.