Turkey-based Demirbank TAS Istanbul will put its banking branch in Romania up for sale, with the deadline for submitting bids having been set for August 24. Also for sale is the leasing company on the Romanian market, Demirbank Romlease.
Demirbank Turkey was taken over by the Turkish State last year, during the financial crisis and sold to one of the leading financial groups in the world, HSBC from Great Britain, several weeks ago.
HSBC did not want to take over Demirbank’s branch in Romania, as well as four other branches of the Turkish bank: Demir Halk Bank Netherlands, Demirbank Bulgaria, Demir Kazakhstan Bank and Demir – Kyrzgz International Bank.
Turkey-based Demirbank holds 62.5% in Demirbank Romania. The rest of the shareholders of the bank in Bucharest are International Finance Corporation, World Bank’s investment division – 20%, SIF Muntenia – 10%, SIF Transilvania – 4.99%, SIF Banat – Crisana – 2.35% and others – 0.16%.
Demirbank Romania says that several investors have already shown interest in the Bucharest-based bank.
“Major European banks, as well as major financial groups in Turkey are interested in buying the bank in Romania. We are in no position to volunteer any names yet,” said Virginia Otel, Demirbank Romania’s development manager.
She claims the bank is interesting and profitable. “The bank has developed, it has branches and a competitive edge over other banks in Romania,” Virginia Otel said.
Demirbank Romania has $17 million in equity capital. At the end of last year, it registered 1,699,694bn lei ($65.55 million) in assets and accounted for 0.72% of the total assets in the Romanian banking system. The bank is now undergoing a share capital increase (from 215bn lei to 404bn lei) process.
According to the statement made by Demirbank Turkey, the buyer should be announced by September 3, both for Romania and for the other branches put up for sale.
Demirbank Romania was established with 61.6bn lei ($8 million) in start-up capital back in November 1997 and Demirbank Istanbul as the main shareholder (99.5%).
In 1999, part of Demirbank Romania’s shares were bought by International Finance Corporation (20%) and the three SIF (Financial Investment Companies, Muntenia, Transilvania and Banat-Crisana). Demirbank Romania’s headquarters in Bucharest are located in the SIF Muntenia building, after all.
The bank started to gradually develop by launching new products and opening branches in the country. It currently has 11 branches and a state-of-the-art computer system. It is the only bank providing a mobile banking type of product on the Romanian market.