Bank targets for the next nine months

Players such as Banca Comerciala Romana (BCR), Banca Romana de Dezvoltare - Societe Generale ((BRD-SG), Unicredit, and Banca Transilvania (BT) are targeting consolidation of their market share and their leasing portfolio, while smaller banks will double their networks, assets and business in Romania. All of this is natural because Romania is quoted as having one of the highest banking sector growth potentials in the region.

“BCR loans will increase 30-40 percent this year, and we will focus mainly on the mortgage market, which is still underdeveloped,” said Manfred Wimmer, CEO of the top Romanian bank according to assets, BCR. The bank has already opened six specialized centers for mortgages, and open a further ten in the period immediately ahead. BCR officials added that 2008 will also bring a rise in corporate financing, with the demand for loans to be sustained by foreign direct investments and imports.

The second bank on the market, BRD-SG, will focus in 2008 on client relations, and wants to become involved in the running of European funds, through the largest banking network, after that of Casa de Consemnatiuni si Economii (CEC), which is less efficient. “The year 2008 will be one in which Romania will have to make much more effort in terms of major public infrastructure projects. Another major challenge will be European funding,” according to a declaration for Business Standard by the President and General Manager of BRD, Patrick Gelin.

Mid-sized banks, such as Greek-owned Banca Romaneasca and Piraeus Bank, will focus on opening new units and increasing their assets.

In 2007, Romanian banks had a net cumulated profit of €825 mln, up 32 percent year-on-year, according to data reported by lenders to the Central Bank. Over 50 percent of the banking system’s net profit belongs to BRD-SG and BCR. Banking system assets also rose 45 percent, to €70 mln.