ZF English

MKB Romexterra's profit, down 16% to 3.8m euros

MKB Romexterra's profit, down 16% to 3.8m euros

The bank plans to expand its territorial network this year, from 69 to 96 locations

02.08.2007, 19:02 9

MKB Romexterra Bank has reported a net income worth 3.8 million euros for the first half of this year, down almost 16% in euros against the level reached during the same time last year.
"The net income reported at the end of the first half of this year was influenced by considerable investments made in the development of the territorial network, the modification of the organisational structure, in personnel recruitment and training and in a re-branding process," stated the bank's representatives.
The majority stake in the Romexterra bank was acquired last summer by Hungary's MKB bank (a unit of Germany's Bayern LB group) as part of a public offering. Since the beginning of this year, Romexterra has undergone a reorganisation process with a view to its integration within the German group.
In the first half of this year, the bank's assets rose by 40 percent, to 1.5 billion RON (484 million euros). The volume of released loans reached 971 million RON (approximately 291 million euros), up 74 percent from the first six months of last year.
"The fastest growth rate was registered on the retail segment, with a net increase of 109 percent, while the segment of legal entities posted a net increase of 60 percent," explained MKB Romexterra's representatives.
After being taken over by MKB Bank, Romexterra had access to foreign loans at much lower interest rates, which has allowed the bank to slash costs related to activities carried out with legal entities.
"Since the beginning of this year, new business lines have been developed within the structure of MKB Romexterra Bank, such as project finance, specialised SME financing and private banking," added the bank's representatives.
The bank plans to expand its territorial network this year, from 69 to 96 locations, as well as its ATM network, which it intends to double, to 326 units.
At present, Hungary's MKB bank controls 75.95 percent in MKB Romexterra's stock, after it acquired a stake of 20.5 percent in May from the Czech Republic's PPF Investments investment fund. The two sides have not announced the value of the transaction. The Czechs had bought the stock last summer, when they launched a bid rivalling that of MKB.

Pentru alte știri, analize, articole și informații din business în timp real urmărește Ziarul Financiar pe WhatsApp Channels

AFACERI DE LA ZERO