OTP Bank will operate a share capital increase at RoBank worth ten million euros. The Hungarian bank has also appointed a new Board of Directors for the Romanian bank. The decisions were made during a General Meeting of Shareholders held last week.
The new chairman of the Board of Directors will be Anthony Fekete. The other members of the Board will be Mustafa Ayan, Miklos Nemeth, Akos Takacs and Eniko Zsako. The executive management of the bank is currently handled by the old team, with Mustafa Ayan as the chief executive.
Both the capital increase and the installation of the new Board of Directors need the National Bank's approval to be effected.
The ten million euros will add up to the current capital, 425.9bn ROL (10.3 million euros). RoBank's share capital will exceed 30 million euros following revaluations. RoBank's current equity capitals are in excess of 830bn ROL (20.2 million euros).
The National Bank of Romania endorsed the deal by which OTP Bank bought RoBank in mid July. Hungarian financial group OTP acquired the whole of RoBank this spring, under a $47.5 million transaction.
OTP Bank paid 20% of the money upon the signing of the acquisition contract, with the remaining 80% was to be paid until July 30.
OTP announced a $100 million investment plan for the Romanian market over the next few years. The Hungarian bank aims to attain 4%-5% market share. The bulk of the investments, $70-$80 million will be made in the next three years.
The money will mainly go to the expansion of the territorial network, which should comprise 100 branches and to the development of the IT system and of the electronic transaction system.
RoBank logged 92.1bn ROL net profit last year, with operating income standing at some 190bn ROL. Total interest-related revenues amounted to 761bn ROL. The bank's assets had reached 5,173bn ROL at the end of last year.
OTP's strategy in Romania entails developing an integrated financial group structure that should cover every financial segment through product bundles and linked distribution systems. Thus the next steps announced by the Hungarian bank management will be the entry on the insurance, leasing and investment fund market.
OTP has not yet decided if its entry on the insurance market will be in form of a takeover of an already existing company or if it will set up an entirely new insurer. liviu.chiru@zf.ro
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