Egnatia Greek group has impressive investment plans for Romania, which include direct involvement, through either financing or capital, in project development.
In the case of interests in the firms developing projects, the group will use special financial vehicles registered in Greece. The domestic branch of the group is a small bank. Owning assets worth 227 million euros, Egnatia Romania accounted for 0.5% of assets in the system at the end of last year, and was positioned somewhere at the middle of the ranking.
"Through our parent bank, we will have a business network related to the development of projects in important sectors," Stylianos Sofianos, chairman and general manager with Egnatia Romania, told ZF.
By participating in the capital of some companies, Egnatia will get involved in the development of important projects and will finally cash in on its gains by withdrawing from these investments. Sofianos has not disclosed the sums to be invested in these projects, pointing out, though, that they would be considerable. Targeted sectors include real estate, energy, heavy industry or the IT sector. The first projects are already about to be signed, but partner names cannot be revealed for the time being.
At present, Egnatia is involved in a merger with Marfin Bank of Cyprus. Sofianos estimates the process will end at the middle of this year and the bank will afterwards embrace a more aggressive policy on the domestic market as well, as this is considered a strategically important for the group.
Until then, Egnatia is growing organically, by expanding its branch network. In the first half of this year, six branches will be opened, taking the bank's network to 14 branches. By December, their number should climb to 20. "Last year was better than we'd expected. In 2007, we want to expand our business to a significant extent. We target double assets, while net income should go up to some 4 million euros," says Sofianos.
In 2006, Egnatia derived net income worth 3.7 million euros, from 2.1m euros in 2005. The bank's assets last year more than doubled, surging from 103 to 226 million euros. This way, the bank's market share increased from 0.3 to 0.5%, with Egnatia climbing six positions in the bank ranking.
Loans granted to customers rose by 89%, to a little more than 119m euros. Retail lending amounted to almost 18m euros, 3 times more than in the previous year. Egnatia has recently started offering retail products and services, launching home equity loans last year. Deposits from clients went up by 117%, to close to 78m euros in December.
Egnatia is also getting ready to launch private banking services. This year, the bank will invest around 5 million euros in the opening of new branches, the launch of new products and the implementation of technologies supporting the development of its retail offering.
Egnatia Romania
Posted net income worth 3.7m euros in 2006, from 2.1m euros in 2005
Its assets more than doubled last year, from 103 to 226m euros, with the bank's market share advancing from 0.3 to 0.5%
Plans to get directly involved in the development of projects in important sectors
Intends to open six branches in the first half of this year, taking the network to 14 branches
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