Raiffeisen Banca pentru Locuinte (RBL) concluded last year with losses of 3.5 million euros, far less than the budgeted 4.9 million euros, with investments in the same year reaching four million euros.
The bank has earmarked 4.5 million euros for investments this year.
"The results, which are better than expected in the budget, were due to the large volume of savings attracted, high interest rates and low costs. The savings volume exceeded six million euros," said Wolfgang Melzer, the bank''s vice-president.
RBL, currently the only bank on the market that exclusively targets savings and housing loans, was awarded its operating licence from the National Bank in June of last year.
"We hope we will start making a profit three or four years after the start of our business, but it is hard to give an accurate estimate because we are operating on a market that is being created now," said Ionut Costea, RBL chairman.
The bank concluded nearly 32,500 saving-lending contracts in six months of operations, with total commitments in the contracts amounting to some 155 million euros. The average value per contract was 4,773 euros, 36% higher than budgeted. Its total assets had reached 19.5 million euros by the end of 2004.
"We hope to attain a total volume of assets of 58 million euros by the end of 2005. The increase in average savings by 36% compared with the level set in the budget shows that the population is willing to save more and more money in order to have a better home," Costea said.
The bank will begin lending operations at the end of this year, with the project already being under way.
Costea went on to say that the emergence of competitors on this market would have a beneficial effect as it means improved strength in promoting the product.
RBL''s distribution network, which currently stretches to almost 3,500 offices, is to be expanded through a partnership with Posta Romana (Romanian Post Office) and with a number of companies that will offer the product to their employees.
RBL''s product is a savings instrument, which is later followed by lending in ROL for the funding of housing investments. liviu.chiru@zf.ro
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