Citibank Romania will soon be operating the biggest distribution network of all the American group's regional subsidiaries (Poland not included), with the Romanian branch set to comprise 93 units, explains Shahmir Khaliq, City Country Officer and general manager of the bank.
"Romania has also become a big market for us and we are investing significant amounts because the local branch is growing and becoming more and more visible within the context of the group's regional activity and is therefore generating a greater interest from our bosses in London, who are asking us to show them more," Khaliq, who has been in charge of the local operations for a year and a half, told ZF. Regionally, apart from Poland, Citi is also present in Hungary, the Czech Republic, Bulgaria and Slovakia.
Khaliq believes 2007 will be the best year since Citi's entrance onto the Romanian market in 1996.
"Six months into this year, we have seen much higher growth rates than in the previous periods: our credit portfolio increased 40% against December 2006, revenues from interests surged 34%, whereas revenues from fees and commissions doubled," says Khaliq.
According to the bank's annual forecast, 2007 will see a 178% increase in the credit portfolio against last year, with revenues expected to increase by 232% and the number of clients to increase by around 72%.
"We are ambitious because we have to prove more to the group how much business can be conducted here. There is already high interest concerning the Romanian market, also from other Citi divisions, and there is still a willingness, on our part, to consider acquisition opportunities, provided that the price is right and that there is a seller. Citi is not shying away from making acquisitions in order to expand," says Khaliq.
Currently, Citi operates 8 corporate branches, 31 CitiFinancial agencies specialised in retail and 35 direct sales centres, with over 500 agents. Another 8 agencies and 11 direct sales centres are planned by the end of this year, thus bringing the network total to 93 units.
Khaliq says some CitiFinancial units will also begin providing services for corporate clients in order to increase the coverage for large cities.
The head of Citi Romania says the next 3 or 4 months will see the consumer finance offer promoted through CitiFinancial strengthened by at least "one major product". "We have the necessary sales infrastructure, and a 70,000-client base to offer products to; therefore it is only natural for us to come up with more products. We are looking at the market of mortgage loans, which still have a low degree of penetration and also at credit cards and at products for SMEs".
Khaliq says CitiFinancial's operations indicate the "best performance" of the region after exceeding the breakeven point three years after their initial launch and witnessing a rapid growth rate.
Citibank Romania:
Set to become the group's second-largest distribution network in the region, with 93 branches.
Projections for 2007 against 2006: 178% increase in the credit portfolio, 232% rise in revenues and 72% surge in the number of customers.
Currently, Citi operates 8 corporate branches, 31 CitiFinancial agencies specialised in retail and 35 direct sales centres, with over 500 agents.
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