Egnatia Bank, the domestic arm of Greek group Marfin, plans to boost its assets to 890m euros this year, more than double last December's level.
"We've already developed a network of subsidiaries that are maturing and starting to generate business," stated Stylianos Sofianos, Egnatia Bank chairman and chief executive.
At the end of last year the bank operated a 19-branch network, up from 8 in December 2006. The number of branches will reach 31 this year, with new subsidiaries set to open in cities with a high business potential.
According to Sofianos, in order to support the development of its domestic arm, the Greek group will operate a capital increase worth 20m euros. At present, Egnatia Bank has a share capital worth 35m euros, but also a subordinated line of credit from its parent company. However, the bank is still a small player, after it accounted for just 0.6% of assets in the system in December.
The bank's net income has to climb to 8.3 million euros in 2008, from last year's level of 4.35 million euros.
At the end of first quarter, Egnatia will change its name to Marfin Bank Romania, to reflect its position as part of the group. The group's leasing company on the Romanian market, Egnatia Leasing, will also adopt the new corporate identity.
Marfin is also present on the market of mandatory private pensions with Marfin Fond de Pensii. However, the fund attracted only 198 participants and ranked bottom out of the 18 funds present on the market.
The volume of loans granted by Egnatia Bank is expected to double this year to 614m euros. The bank mainly focuses on corporate customers, but is in the process of developing its retail operations. Deposits are expected to more than double and reach 307 million euros. Even so, the bank will remain dependent on financing from its majority shareholder.
Egnatia will hire around 160 people this year, and reach 388 employees by the end of the year.
The Greek group entered the domestic market in 2000 when it took over the operations of BNP-Dresdner Bank, in a strategic move to expand on other regional markets.
At the beginning of last year, Marfin Investment Group took over Egnatia Bank and Laiki Bank, with the two entities subsequently adopting the group's identity.
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