Egnatia Bank Romania will conclude the year with a net profit of 2 million euros and total assets of some 100 million euros, as planned, says Stylianos Sofianos, the chairman of the bank.
"We will double our balance sheet by the end of the year, compared with December last year. We expect this to double again next year, as well," Sofianos says. The bank had 103 million euros in assets at the end of August, but some adjustments were made in the meantime.
The bank''s equity capital currently totals 13.5 million euros. It will take out another subordinated loan from the majority shareholder by yearend, the Greek Egnatia Bank group.
"The loan will allow us to develop our business and continue to grant loans. We haven''t decided on the size of this loan yet," Sofianos says. He added that the bank could continue to grant foreign currency loans under the new NBR regulations capping funding in foreign currency. At present, only one quarter of the loans granted by this bank are denominated in RON.
Egnatia plans to develop its business on the retail segment, and is currently expanding its territorial network, which is essential if it wants to be competitive on this market.
The bank has recently opened a branch in Bucharest (now totalling two such offices), and will open one more by the end of the year, also in Bucharest. In 2006, the network will be expanded in the rest of the country so as to total 10 branches.
The bank will soon launch a personal loan, to complement its product portfolio aimed at individual customers. At present, Egnatia offers real estate and car loans for individuals. Sofianos says the bank will stand out from the competition thanks to the speed and flexibility its still small size allows, without having to contemplate a market niche, as other players have. The bank can rely on the expertise acquired by the Greek group on other markets for its business on the retail sector in Romania. liviu.chiru@zf.ro
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