BRD - Groupe Société Generale (SocGen), the second largest Romanian bank, forecasts an increase in its market share due to a rise in the number of real estate mortgage clients and special offers for small and medium-sized enterprises (SME) operating in agriculture.
BRD SocGen Chairman, Patrick Gelin, told Business Standard in an exclusive interview that the bank is launching new products on the market, “especially for our SME clients in agriculture. We are also drafting a new mortgage loan for our individual clients,” he said.
The bank is preparing to face tough competition on the market this year. 39 banks are already operating on the Romanian market, and 57 more European financial institutions have notified the National Bank of Romania (BNR) of their plans to come to Romania this year.
BRD SocGen’s Chairman told Business Standard he is not worried about the newcomers. “I am skeptical about any bank’s ability to gain a significant market share from nothing, and simultaneously obtain acceptable profitability,” he said. Gelin added he does not know any success story of this kind in Europe, in which the retail market is led by a limited number of credit institutions.
He said newcomers are either institutions wanting to take advantage of Romania’s EU accession, to engage in operations with other EU members as a starting point, or banks investing in greenfield projects aiming to succeed in retail banking.
Gelin also said that, this year, the loan market will largely depend on pricing features - the level of interests and fees - as well as other conditions, such as the level of the down payment. On the other hand, he added, mortgages for real estate will be important in securing new clients.
BRD SocGen, the Romanian branch of the French Group Société Generale financial institution, posted net income worth €50.08 million, a 12 percent year-on-year increase, due to a significant rise in the number of loans granted.
BRD SocGen is the second largest Romanian bank, with a 16.28 percent market share (in assets), according to BNR data.
Groupe Société Generale is also operating in the Czech Republic, Bulgaria, Cyprus, Hungary, Russia, and the Republic of Moldova. The Romanian branch is the most profitable in the region.
The bank is listed on the Bucharest Stock Exchange, with a capitalization worth €4.9 billion. The main shareholder is Groupe Société Generale, with a 58.33 percent package. The five Romanian financial investment institutions (SIF) and the European Bank for Reconstruction and Development (EBRD) are also shareholders.
