Raiffeisen Romania foresees €59 mln in profits in 2007

The bank targets €300 mln in income and €241 mln in expenses, according to a decision by shareholders published in the Official Gazette.

Raiffeisen Bank has a broad expansion strategy and has allocated some €24 mln to open 220 new offices in 2008.

"We aim to open a branch for each working day, in 2008. We also target to increase our share from a current 8.9 percent," the bank's President, Steven van Groningen, recently told a press conference. According to market sources, expenses for opening a new unit amount to an average €110,000, if the space is rented.

Raiffeisen Romania had some 337 units and 5,145 employees by mid-2007, according to a report by the Austrian lender.

Raiffeisen Romania had large deposits at the central bank in the first half of 2007, which lead to an increase in loans to other banks granted by Raiffeisen International, the Austrian group's external business division.

The group operates on the Romanian market through Raiffeisen Bank Romania, housing bank Raiffeisen Banca pentru Locuinţe, Raiffeisen Leasing, brokerage company Raiffeisen Capital&Investment, private pension company Raiffeisen Asset Management and Raiffeisen Investment Romania.