To date, the bank, a subsidiary of the largest private group in Portugal, Millennium Bcp, has allocated the first €40 mln from a total budget of €300 mln planned for the next three years for the Romanian greenfield project. With 500 employees, the Portuguese investors are relying primarily on small and medium-sized enterprise (SME) business, but also on the private banking sector, where they estimate a potential of 40,000 local clients, with incomes exceeding €750. “We are optimistic about our development in Romania and certain that we will exceed targets,” said Millennium Bank Romania’s General Manager, Jose Toscano.
For the next for years, Millennium has announced a target of 150,000 clients, and a profitability threshold and market share of 1.9 percent. “We target a 1.5 percent share of the market by 2010, and 1.9 percent one year later. For 2012 and 2013, the set market share is 2.2 and 2.3 percent, respectively,” added Toscano. To meet these goals, the bank has scheduled investments of €45 mln for next year, €76 mln in 2009, €79 mln in 2010, and €55 mln in 2011. For the moment, Millennium Bcp has total control of the subsidiary, but there is a possibility that the Portuguese group will reduce its participation. “We do not have other plans for Romania, but if an opportunity appears we will consider this. We will, however, have the majority as in all other countries in which we are operating,” Millenium Bcp Vice President, Christopher de Beck, explained.
Millennium Bcp’s management kept its promise to enter the Romanian market at any cost, even after it lost its bid for the privatization of Romania’s largest bank, BCR, to Austrian group Erste.
“We are optimistic about our development in Romania and certain that we will exceed targets Jose Toscano GM, Millennium Bank Romania
