Crisis freezes BCR's territorial expansion plans
BCR, the biggest bank on the Romanian market in terms of assets,
has dropped plans to exceed the mark of 700 branches and agencies
by the end of 2010, intending to end this year with a 668-branch
territorial chain, from 667 at present.
The extended recession and the collapse of retail loan sales have
led to a new postponement of the older target of 700
branches.
At the end of 2009 BCR had 661 branches dedicated to individuals
and small firms, and continued to improve its territorial coverage
in the first half of this year.
According to a business plan version included in the prospectus of
the financing programme on the Luxembourg market last summer, BCR
was planning to expand its chain to 728 branches in 2010 "in order
to make it easier for customers to access financial services and to
preserve its market share in certain geographic areas."
The bank, however, went back on its target, informing investors
that the 2010 target would remain 668 branches.
Since the effects of the economic crisis started to emerge, the
territorial expansion plan has been adjusted several times. 10
branches left over from the 2008 programme were opened in the first
part of 2009. In February last year, the BCR management was still
counting on reaching the 700-branch mark by the end of 2009, which
never happened.