“This year’s profit will be below that of 2006 due to scheduled investments,” said the bank’s President, Sergiu Oprescu.
The bank’s loans surged 124 percent in the past 12 months, and the balance registered by the end of September reached €2.34 bln, while deposits increased by 28 percent, to almost €1 bln.
The bank opened 42 branches in the past year, with a current network of 96 units, and hired 500 people for a total of 1,714 employees.
By the end of H1 2007, Alpha Bank had a 4.8 percent market share, and it targets a 10 percent share in the coming three years, with 300 units by 2010.
Assets of the 40 banks operating in the Romanian banking system totaled €50.9 bln at the beginning of 2007, 28 times less than assets of European banks (€1,400 bln).
“The performance of the Romanian banking sector was affected by lower margins, due to a drop in interest rates on a market with lower inflation and higher competitiveness, and by increased costs associated with the expansion of banking networks,” said Fitch Ratings banking team Manager.
Romanian banks registered a total net profit worth RON 1.401 bln (€0.419 bln) in H1 2007, up 13.9 percent from H1 2006, while net assets soared by 10.22 percent, to RON 190.49 bln (€56.97 bln), according to data supplied by the National Bank of Romania (BNR).
“In the short-term we foresee a slowdown of the profit rate in the banking sector, considering various pressure factors such as higher competition, lower interest margins, increased provisions, ongoing investments in territorial networks, and costs related to applying the Basel II Agreement,” indicates a study made by BNR.
Alpha Bank Romania, which administers assets worth some €3 billion, registered a 58 percent increase in assets in 2006, up to €2.11 bln, which means a 4.15 percent market share, according to BNR data.
On the local market, the Alpha Bank group operates a bank, a leasing company, the Alpha Finance brokerage company, the Alpha Advisory consultancy company, and Alpha Insurance Brokers.
“This year’s profit will be below that of 2006 due to scheduled investments Sergiu Oprescu President, Alpha bank Romania
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