Consumer finance company Cetelem IFN (Credisson) granted credits worth 64m euros in the first seven months, an over 50% increase against the same period last year.
"The growth is triggered by the expansion of the strategic partners portfolio to fields like electronics, home appliances, furniture and IT, as well as of personal loans," explains Daniel Boaje, deputy CEO of the company. The company is planning on granting credits worth 140 million euros, an almost 40% increase against 2005, when Cetelem granted credits worth 100 million euros. The company will also launch a credit card soon.
"We wish to maintain an upward trend until the end of the year, considering the results seen in the first six months of the year, when loans granted stood at 30 million euros - a 37% increase, Boaje adds. Cetelem IFN is the former Credisson, set up by the investment fund Oresa Ventures and by businessman Florin Antonescu three years ago.
Last year, Cetelem, the division specialised in consumer finance of the French group BNP Paribas, acquired the whole company. "We are hoping to consolidate our position on the market of consumer credits and that what we have started today by officially changing the name of the company will translate into a quality boost for our products and services," Boaje also says.
Other players on the market of consumer credits are Credex (a company held by retailer Altex and by Raiffeisen Bank), Estima Finance (developed by the Romanian - American Enterprise Fund and by retailer Domo) and Euroline, part of the Greek group EFG Eurobank.
According to company officials, Cetelem has an approximately 20% share of the specialised market, having granted credits worth over 350 million euros in the three years since its establishment. The company specialises in brokering and granting consumer credits and operates in distribution networks for electronic, home appliance, IT, furniture and interior decorations.
The electronics and home appliances chain Flanco, which was taken over by IT&C retailer Flamingo, remains Cetelem's main partner, stated company officials. Credisson had actually been set up following the outsourcing of Flanco's lending operations.
On the home appliances segment, Cetelem also collaborates with the Cosmo chain of stores, with other significant partners including furniture stores Elvila and DIY store network Praktiker. Through its collaborators, Cetelem currently has some 800 offices and over 800 employees.
The company saw an outstanding growth in the last few years, given the boom of consumer credits. In the next period, however, the growth pace of consumer credits will slow down, prompted in part by regulations imposed on the activity of non-banking financial institutions by the NBR. "The market will grow further, but at a more balanced pace. The NBR's intervention is very welcome, as it will stabilise and regulate the market, although it will slow down the growth pace," say Cetelem officials.
Cetelem IFN
Is the former Credisson set up by Oresa Ventures and businessman Florin Andronescu three years ago
Full-year loan target: 140m euros, up about 40% from the 100m euros in 2005
Main partner is electronics and home appliances chain Flanco, acquired by IT&C retailer Flamingo
Other partners are Cosmo, Elvila and Praktiker
Competitors: Credex, Estima Finance and Euroline
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