UniCredit to resume network expansion as the economy recovers

UniCredit wants to gain market share on the Romanian retail market, and is set to focus on opening branches, as well as on developing distribution through alternative channels, says Gianni Papa, head of operations of the Italian group in Central and Eastern Europe.

"As already announced, we plan to open 300 branches over the next five years. The expansion of the chain will, however, be correlated with the trend of the economy, because we don't want growth just for the sake of growth. Romania is an interesting market for us, but it faces economic problems that need to be resolved," Papa specifies.

He says the basic strategy remains organic growth, based on the group's existing capabilities.

"In general, acquisition is not an option as it used to be before the crisis and we have already proven that we have the ability to extend the network organically," Papa added.

UniCredit Ţiriac Bank could open around 50 branches this year, and reach a total of around 300.