RBL turns a profit after five years of operations

Raiffeisen Banca pentru Locuinte (RBL), the first player to enter the niche of housing savings and loans five years ago, reported a 4.5 million-RON (one million-euro) profit in the first six months of the year. “Among the most important factors behind these results are the doubling in the number of contracts against the similar period of last year and their improved quality, as well as our policy of cutting administrative costs,” said Alexandru Ciobanu, president of RBL. The bank currently has around 100,000 savings and loan contracts underway, with the average amount contracted standing at 5,000 euros. RBL is in full process of absorbing HVB Banca pentru Locuinte, the second player that entered this niche, in 2005. This leaves RBL with only one direct competitor, BCR Banca pentru Locuinte, which started operations a year ago. Under the savings and loan contracts, clients first accumulate part of the amount agreed on with the bank (usually half the amount), while at the end of the savings period, the client can take out a loan from the bank under convenient terms. The product is available only in RON.