ATE Bank Romania, the former Mindbank, is set to focus on the retail segment in a bid to achieve an almost fivefold turnover increase in the next three years.
"We must get the number of individual customers in line with that of legal entities," Sergiu Manea, general manager with ATE Bank Romania, told ZF. As a short-term target, the bank must increase its market share in terms of assets to 1% from 0.2% at present.
The Agricultural Bank of Greece (ATE Bank), the fifth largest player on the Greek market, has, starting last summer, acquired several stakes in Mindbank, so that it now owns more than 73% in its share capital. The Greeks have already operated a significant capital increase worth over 20m euros, and in early spring appointed a new management team, designating Sergiu Manea as chairman. Manea had previously filled the deputy chairman position.
To gain ground on the retail market, ATE Bank is poised to expand its network to 100 branches in the next three years, from 12 at present. Manea estimates around 500,000 euros will be spent for the fitting out of each branch.
Four new branches are scheduled for opening in 2007 in Bucharest, with another 6 subsidiaries to be inaugurated in the rest of the country, in Arad, Ploiesti, Suceava, Bacau and Piatra Neamt.
A stronger presence should lead to an increase in the number of customers, to 22,000 by yearend from 12.000 at present. In 2008, the bank plans to considerably expand its customer portfolio, to 42.000.
At present, retail loans account for some 2% of a total volume of 150m RON (48.5m euros).
"Under the circumstances, we want to boost the total volume of retail loans to 50% in the overall volume of loans," explains Manea.
The volume of released financing should climb to 210m RON by December. In the next two years, an almost fivefold lending increase to 700m RON (213m euros) is scheduled to be achieved by the end of 2009. In parallel with expanding its presence, the bank will add real estate and consumer loans, a debit card and Internet-banking services to its retail offering.
On the segment of legal entities, a business development loan will be launched, to be mainly destined to attract agricultural enterprises.
Mindbank is one of the small players on the market, with a 0.2% share in the system assets, according to the NBR data. At the end of Q1, the bank's assets stagnated in euros, at 101m euros. The bank generated net income worth 0.1m euros in Q1.
The Greek bank in spring decided to change the bank's name from Mindbank into ATE Bank Romania to reflect its being part of the group. Sergiu Manea says the new identity will be promoted through a media campaign, with a specialised company to be selected.
He did not reveal the budget earmarked for this campaign.
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