Banca tiriac contemplates growth strategy

Banca tiriac management is contemplating a strategy to ensure the bank’s growth on the financial market. The bank at the end of last year accounted for 3.1% market share in terms of assets, which amounted to 10,911bn ROL (more than $340 million). Anthony van der Heijden, the bank’s chairman says this growth could be achieved either through a strategic investor or through a contribution in cash by the current shareholders. He dismisses the rumours in the press alleging the owners of the bank were in talks with financial investors to sell the controlling interests, but does not deny the bank is indeed considering an investor, though.
“We are not negotiating the sale of the bank with anybody. No institution has come to us in this regard. It was only a story run by the press. We, however, do not deny the fact that we are thinking about the bank’s strategy for the future, because we need capital in order to grow. This growth is either achieved through a strategic investor or through the contribution in cash by shareholders. No decision has been made yet,” Anthony van der Heijden yesterday said. The bank chairman hinted that the shareholders’ dividends might no longer be paid in the future, in order to capitalise the bank.
Rumours on the Romanian market this year had it that the majority shareholder of the bank, businessman Ion tiriac was carrying talks with various international financial groups to sell the bank. The names mentioned at the time included the National Bank of Greece and the Italian UniCredito Group, which bought a bank from the Romanian market last year.
Banca tiriac has been going through an extensive restructuring process with Van der Heijden at its helm over the past three years. He was brought on board from ING Bank Romania by Ion tiriac to solve the problems the institution had started to experience back then.
The bank estimates to make 700bn ROL in full-year profit, up nearly 100bn ROL compared with the results in 2001.
Banca tiriac launched a promotional campaign for four products aimed at natural persons yesterday – the Central Account, the Savings Account, the Personal Credit and the Auto Credit. “We will engage in a promotional campaign on TV and in the newspapers, you’ll be hearing a lot from us over the next few weeks,” Antony van der Heijden said.
The Central Account allows depositing the salary of the holder and offers the possibility to have a Visa Electron card issued free of charge. The client may apply for a credit of up to six times their monthly net salary. Every operation conducted through the Central Account is free of charge.
The Savings Account allows withdrawing a specific amount of money at any time, provided a minimal threshold is observed. This amount bears a higher interest.
The bank has also re-launched the Auto Credit, a service that enables an applicant to get up to $15,000 or the equal value in a different currency. The applicant is required to make at least 150 euros a month.
With more than 564bn ROL in share capital Banca tiriac is the largest private bank established in Romania after 1989. The shareholders of the bank are Ion tiriac holding – 66.87%, the European Bank for Reconstruction and Development – 5.87%, Romanian natural persons – 19.54%, Romanian companies – 3.90%, foreign natural persons – 3.75% and foreign-held companies – 0.07%.