RIB to double network to 40 branches

Romanian International Bank, one of the smallest banks in the system, plans to double its territorial network to 40 branches by the end of next year, in order to focus on the retail market.
Six months into the year, RIB had 250 million RON (70 million euros) in assets, an increase of 14% compared with December last year.
“We managed to post almost 2.3 million RON (0.6 million euros) half-year net profit. We anticipate to conclude the year with a net profit of 4 million RON,” says Ion Nitu, the chairman of the bank. He adds the bank has made operating income in the previous years, but not net income, because of the unfavourable exchange rate differences related to the capital conversion.
RIB is 90% held by an American citizen, Daniel Roberts, who also controls another small-sized bank in the US. Nitu says the main shareholder is determined not to sell the bank, relying on its focus on market niches.
RIB is to get a 10 million RON (approximately 2.8 million euros) capital inflow in three instalments this year. The first instalment, 3 million RON, should be contributed by shareholders at the end of this month. The next increases are likely to be made in October and at the end of this year.
The bank’s equity capitals currently amount to 42.8 million RON (nearly 12 million euros). Nitu believes funds will allow the opening of 10 more branches by yearend and an increase in assets to 280 million RON (approximately 78 million euros). At the end of the first quarter, RIB had a little more than 61 million euros in assets, according to National Bank data, which translated into a 0.2% market share. The bank was 33rd out of the 39 in the system.
The RIB chairman says the bank will focus especially on the retail segment, which includes individual clients and small and medium-sized enterprises. The main advantage Nitu sees is the flexibility of the bank, stemming from its small size.