Raiffeisen Bank concluded 2004 with a doubling of its assets to more than two billion euros and a net income of 28.1 million euros, more than five times higher the figure for 2003. Three years ago the bank posted losses of over 10 million euros.
"We set out to achieve an asset growth of 60% but managed to keep on growing faster than the market average, which we estimate at 40%," said Steven van Groningen, the bank's chairman.
As a result, the bank has consolidated its position as the number three on the market in terms of asset value. By the end of November it had achieved a market share of 9.1%, compared with 7.2% in late 2003. In terms of lending, Raiffeisen had a 10.3% market share, while for deposits its share was 9.2%.
Development in the lending business is reflected in the bank's balance sheet, 60% of which is made up by loans, a visibly higher rate than the market average. The bank's credit balance rose by more than 77% in 2004, while deposits doubled.
Steven van Groningen says Raiffeisen Bank has improved its return on equity significantly from 7.5% to 27.4%. At the same time, the bank continued to invest extensively, allocating some 40 million euros to IT systems, equipment, development of the territorial network and personnel training.
"We plan on maintaining this investment pace through 2005 at at least 40 million euros," Van Groningen added.
The bank's product and service portfolio is pretty much complete, according to the Raiffeisen president, and efforts will now focus on improving quality. Raiffeisen also intends to develop Internet banking services and to improve current mobile banking services.
"The general goal for this year is to consolidate our position, as well as to continue to grow faster than the rest of the market so as to achieve 15% of the total assets within a time frame of four or five years," the bank's chairman said.
Growing its market share will also depend on the outcome of Raiffeisen's bid to take over Casa de Economii si Consemnatiuni (CEC), the Romanian Savings Bank. razvan.voican@zf.ro
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