Piraeus Bank, a major financial group on the Greek market, has conducted a capital increase worth 172 million euros for its Romanian unit.
In the wake of this cash injection, the share capital of Piraeus Bank Romania climbed to 270m euros (865.8m RON). Back in spring, the Greece-based bank also conducted a capital increase worth 50m euros. The capital increase was operated in RON, with the Greeks transferring 545.2 million RON (172m euros) to the domestic unit's accounts.
"The latest capital increase will help sustain the rapid growth rate Piraeus Bank Romania has registered this year," stated Stavros Lekkakos, chairman and CEO of Piraeus Bank Romania.
As a result of this move, Piraeus Bank Romania has become one of the most capitalised banks in the system. Piraeus ranks second in terms of share capital, although it is not among the top ten banks in terms of total assets. Only Raiffeisen Bank (ranked third in terms of assets) exceeds Piraeus's share capital, with 1.19bn RON. BCR is the largest bank in the system (ranked third in terms of assets), with a share capital worth 792 million RON (244m euros), while BRD-SocGen, the second biggest player, holds a share capital of almost 700 million RON.
In June, Piraeus Bank Romania reported a significant growth rate for its annual assets, which increased by more than three times, to 1.75bn euros. The retail segment witnessed the most dynamic growth and increased by eight times to 437m euros within 12 months, between June 2006 and June 2007.
"We witnessed a healthy growth rate, and stability indicators remained at the upper level against the Romanian banking system," Lekkakos, who is also a member of the executive board of Piraeus group, told ZF.
"The Romanian banking sector is experiencing a period of rapid growth, and we are not only trying to keep up with this development, but also stay one step ahead of our rivals," says Lekkakos.
However, the head of Piraeus would not provide any details on the bank's plans and preferred instead to announce a general development for the overall network, as well as improved operations along all business lines: corporate, individual clients and SMEs.
"Our efforts will concentrate on gaining a market share, whist improving the quality of services," stated Lekkakos. Halfway into 2007, the bank held 2.8% of the market, against overall system assets valued at 60.78bn euros.
Greek-based Piraeus bank entered the Romanian market in 2000 through the acquisition of Banca de Credit Pater. The bank kept a low profile until 2005, when it embarked on an ambitious network and business expansion plan. At present, the bank has a network of 75 branches and by the end of this year expects to exceed 100 branches.
Besides the bank, the Greeks also operate a leasing company, a financial investment services company and a domestic insurance brokerage firm.
Piraeus Bank Romania
After Greek-based Piraeus Bank made a capital injection of 172m euros, its share capital climbed to 270m euros (865.8m RON)
In the wake of this move, Piraeus Romania has become one of the most capitalised banks in the system
In June reported a significant growth rate for annual assets, by more than more than three times, to 1.75bn euros.
In mid-2007, the bank held 2.8% of the market, against overall system assets worth 60.78bn euros
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