Alpha Bank, the Romanian branch of one of the largest groups in Greece, has revised upwards its three-year growth strategy, after it achieved significant increases in 2007.
"We have reconsidered our strategic plans, and now target a 13% market share in 2010, up from an initial target of 10%," Sergiu Oprescu, chief executive of Alpha Bank Romania, told ZF in an interview. When devising its plans, the bank considered an annual market growth rate of 35% for this period.
Nine months into the year, Alpha Bank Romania reached assets worth 3.7 billion euros, while the level of credits granted doubled against September 2006 and reached a volume of 2.2 billion euros. However, the highest increases were registered in consumer banking, where volumes tripled (starting from a low base).
Next year, Sergiu Oprescu also expects the bank to "almost triple " its credit portfolio.
Development will mainly target the consumer banking area, which will be sustained through the expansion of the bank's branch network. In fact, the Greeks have also reconsidered plans to expand their territorial network.
As a result, by 2010, Alpha will operate 380 branches, up from 300 originally planned. The difference will be covered by the implementation of a new branch concept- a small-size branch called Alpha Point dedicated exclusively to consumer banking clients.
At the end of this year, the bank will have 10 such sales points, in areas with heavy traffic, i.e. commercial areas. In addition, the bank's network will reach 125 branches, on top of which another 75 branches will be added next year.
Although the level of investments will remain significantly high over the next few years, Oprescu believes profit will register an increase, after this year's decline.
"We estimate a significant increase in profit next year, of at least 30% against 2007".
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