BRD-SocGen's private banking customers have reached an average value of portfolios of approximately 650,000 euros, as the total assets of this category of luxury clients last year increased by 130% from 2005.
The bank has not revealed the total volume of private banking assets or the number of customers.
"BRD does not want to manage the assets of an impressive number of customers, but rather have quality customers in its portfolio," Dana Bajescu, manager with BRD Dorobanti Group of Bucharest, in charge with the bank's private banking office, told ZF. What does quality customers mean for BRD? "Individuals established in the Romanian business environment, with a special financial potential, holders of considerable wealth," answers Bajescu.
In the case of HVB Tiriac, the average value of a portfolio stands at 200,000 euros, with peaks of over 5 million euros, while Bancpost speaks of 240,000 euros and Raiffeisen reports an average portfolio of 400,000 euros, against a number of more than 500 customers.
As a rule, banks providing private banking services are not keen on disclosing details on these operations as strict confidentiality is traditionally one of the main ingredients luxury clients resorting to specialised services seek, but global figures should not harm this operating principle.
The over 130% growth pace BRD's private banking office posted last year is significantly higher than the 60% reported by HVB Tiriac or the 50% in the case of ING Bank.
Like most players on the market, BRD chooses private banking clients holding liquid assets worth at least 100,000 euros, but also takes into consideration their wealth, with their growth potential.
Dana Bajescu says clients' interest in international financial markets has risen since the beginning of this year.
"To increase the satisfaction of clients interested in international placements, BRD has diversified its placement product range by selling investment funds managed by Societe Generale Asset Management Paris and by collaborating with the private banking network of Societe Generale of Luxembourg, Geneva or Z?rich," stated Bajescu.
As for private banking customers' risk appetite, she says she saw no change in 2006, while other bankers are speaking of a rising risk tolerance as relationships with the bank strengthen.
BRD's private banking clients choose to place their money mainly in company stocks, time deposits, certificates of deposit and government securities.
Around 98% of BRD's private banking clients are from Bucharest.
"BRD offers its private banking clients distance banking services in maximum confidentiality conditions, so that the client does not have to come to the bank for certain operations."
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