Romexterra makes 2.5m-euro net income in Q1

Romexterra Bank made 2.45 million euro net profit in the first quarter of this year. Calculated in RON, the profit stood at close to 8.6 million RON, 77% higher than in the first quarter of 2005.

The bank”s assets rose by 69% in this interval, to 1.15 billion RON (the equivalent of 329 million euros). The expansion was driven by the increase in the volume of loans granted, which climbed 85%. According to the bank”s data, the loans granted to individual clients tripled during this period, given that the starting base was low. Funding to corporate customers went up by 75%.

In 2005, Romexterra managed to increase its profit by 120% to 22.6 million RON (the equivalent of 6.2 million euros). Assets rose by 54% last year, to a little more than one billion RON (286 million euros), gaining the bank a 0.8% market share. Like the other players in the system, Romexterra managed to considerably improve its profitability, despite pressure for cutting interest spreads.

The bank will continue its territorial expansion this year, having planned to open at least 20 branches. At present, Romexterra operates a 41-branch network, after 7 new offices became operational last year.

Rumours are floating around the market about a concentration of the shareholder structure, in view of a sale of the bank to a strategic investor. Romexterra is one of the few banks on the market fit for an acquisition. After all, the bank”s representatives confirmed interest from foreign banks in the takeover of the controlling interests, but did not disclose their identity.

The negotiations for the sale of the controlling interests are, however, made difficult by the high shareholder dispersion, with the shareholder structure comprising 100,000 people, mainly employees in the petroleum and gas industry, in addition to Petrom”s union and several other companies in this industry. Market sources say those interested in buying Romexterra are Bayerische Landesbank (Bayern LB, Germany), the Portuguese at Millennium BCP (who competed for the takeover of BCR) and the Spain-based bank Banco de Valencia.