After tentative discussions that lasted more than one year, another major player on the Greek financial market - National Bank of Greece (NBG) has decided to increase exposure on the Romanian market. Following the transaction that saw NBG take over an 82% stake in Banca Romaneasca (Romanian Bank), the Greek participation in the Romanian banking assets has climbed to 10.4%, ranking Greece second in the top of investors in the Romanian banking system.
Although they were among the first investors that tried to take the Romanian market's pulse in 1995, the Greeks took quite a long time to make up their minds, so they only looked at the Romanian business environment with different eyes as late as 2000.
Alpha Bank set the tone - although it had been operating in Romania since 1990 (through the Bucharest Bank), it did not speak of an investment plan or a concrete market strategy until 2000. And then, several Greek financial groups suddenly decided that an economy with more than 23 million people and with a similar business mentality could indeed bring money. The Commercial Bank of Greece, Piraeus Bank, Egnatia Bank and Eurobank Ergasias - they all came to Romania.
However, the rather reserved stance taken by the National Bank of Greece towards the Romanian market was quite surprising. Although having operated in Bucharest since 1995, through a branch, although it took over the operations and most of the staff at Chase Manhattan in 1999, it nevertheless took eight years to decide on its strategy for Romania.
Even though statements did point to organic growth strategies for the Romanian market, such as expanding the subsidiary network up to 15 units, entering the retail market, granting house loans or launching credit cards, nothing had actually materialised.
The Greek bank is now making up for lost time, by taking over 82% in Banca Romaneasca. Moreover, the transaction seems to solve most of NBG's territorial and position problems.
Banca Romaneasca now has 24 subsidiaries in the main cities and one of the best IT systems around.
Banca Romaneasca made 96bn ROL gross profit in the first half of 2003, up from the 92.7bn ROL posted in the year-ago period.
The bank's assets amount to 5,217bn ROL, up more than 12% in H1, 2003 as compared to December 31, 2002. The bank has 445bn ROL in capital, with the last capital increase (worth almost 100bn ROL) having been operated in March.
The bank was established in 1993, and the Romanian American Enterprise Fund bought the main stake in 1999. Other shareholders include Arcom SA with 5.2%, Ion Besgan (a natural person holding a 6.8% stake), with the rest of 6.3% held by several natural and legal persons. oana.nuta@zf.ro
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