ING Bank Romania’s revenues are constantly increasing; profit, however, might halve in 2007 compared with last year’s figure due to the bank’s intended investments. The investments could outstrip last year’s, particularly with regard to network expansion, states Misu Negritoiu, the bank’s general manager.
“We are not focusing on sales, but continue to be wary of risks. We aim to keep our credit portfolio well maintained and clean. We are not concerned about current profit, but rather about our portfolio quality five years from now,” Misu Negritoiu told ZF.
In 2006, the bank generated a gross profit of 10.4m euros. However, Negritoiu, who took charge of ING Bank Romania almost a year ago, will not abandon the target of taking the bank’s market share as close as possible to 10%. According to ING Romania’s development policy – the bank’s retail network is expected to expand to 300 branches by 2009, with the retail customer portfolio expected to include one million clients.
“We continue to carry out particularly clean operations, without an aggressive development, because we are not pursuing an increase in our market value. We already have an established base; the bank machinery has all the necessary systems in place, with the required staff and procedures and is proving to be successful. Over the next two years we will be building the critical mass of a universal bank,” stated Negritoiu.
Negritoiu is not worried about losing some valuable people of the bank, such as those working in the securities or corporate departments, indicating that ING has constantly provided the market with specialists and that the mechanisms are solid enough to do without certain individuals.
In April, the bank introduced the concept of micro-firms, with turnovers below 2m euros, for the retail segment.
At the same time, Negritoiu has boasted that he is managing one of the cleanest, although “probably limited” corporate portfolios on the market.
The volume of corporate loans released by the bank increased by around 12%, in the first quarter of this year. For 2007, the bank intends to attract around 1,000 new corporate customers, from a potential of around 8,000. Negritoiu also states that the branch network will be enlarged further so as to cover all counties.
On the retail segment, ING will further invest in marketing campaigns to “wipe out its image of being an elitist bank” and will open dedicated branches at a fast rate. “By the middle of the year, we plan to open 30-40 branches so as to reach our target of 170-180 by the end of 2007,” adds Negritoiu.
ING is banking on a relatively small number of standardised retail products, with simple and easy access.
“We are not looking for niches on the market and we’re not changing our offers due to competition. We are continuing to bank on our own formula, whilst showing customers that this is to their benefit, and that we are not affected by market competition,” stated Negritoiu.
ING Bank
Despite a steady increase in revenues, may see income at half the level of 2006 this year amid greater investments in order to expand its network
In 2006 generated a gross income of 10.4m euros
ING maintains its target of reaching a market share of around 10%
Plans to expand its unit network to 300 by 2009, with its retail customer portfolio to include one million clients