Banca Tiriac last year made 13 million euro net income, up 18% due to an increase in the volume of operations and to gaining new business. This year's net income target is 14 million euros.
"We achieved a return on equity of about 18%, which is quite good. At the same time we managed to get significant medium-term funding sources from financial institutions that improved our balance sheet position and allow us to provide even stronger support to the lending activity," Selcuk Saldirak, the bank's president said.
The volume of loans granted reached 360 million euros, compared with 290 million euros at the end of 2003. Deposits attracted amounted to 455 million euros, an increase of 82 million euros on the previous year. The bank added 100,000 new clients last year so that it ended 2004 with 681,000, 648,000 of which are individuals.
Selcuk Saldirak says the banking market is becoming increasingly more competitive, while margins are dwindling.
"Under the circumstances, one has to boost the volume of one's business to keep profitable. We must expand our operations as much as possible in terms of both products and services and offices. We plan to open 11 offices this year, half of which in Bucharest and hire another 200 people, most of whom will be graduates we will train to support our clients," Saldirak added.
The bank's assets totalled 620 million euros at the end of last year, 145 million euros more than in late 2003. Equity capital reached 90 million euros, up 25%. This year's asset target is 810 million euros.
Businessman Ion Tiriac is the main shareholder of this bank, as he owns 73.61% in it through his group. The other significant shareholder is EBRD, with 5.43%.
In 2004, Tiriac started procedures to find a strategic investor. Two banks submitted bids in the end, HVB Bank, Germany's second leading bank and Piraeus Bank based in Greece. Tiriac decided to reject the bids feeling his bank could grow even further.
"I did not sell the controlling interests last year as I felt I could wait. Meanwhile, both the economy and the banking market have witnessed growth, we grew organically, as did the interest in the bank. I am in no rush to sell, though I always think that I need a strategic partner if I am to move to a higher level," Tiriac says.
About 9% of the capital is held by minority shareholders. "If someone is selling shares of the bank, I'm buying. However, at the same time, I would advise every minority shareholder not to sell because the bank can grow even further. I sympathise with the shareholders wanting dividends, yet I must tell them that I need to put the profit into the development of the bank. Eventually, at the end of the day I'm just another shareholder, even though I am the largest," Tiriac says.
Is floatation on the Bucharest Stock Exchange an option for the bank? "If I cannot find a suitable partner, then putting a stake in the bank up for sale on the stock market is in the cards," Ion Tiriac added. cristian.hostiuc@zf.ro
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