BRD's 740 branches unsettle BCR's position as leaderPublish date: 14-11-2007
With a better profitability/employee ratio and a higher profit, BRD-Groupe Societe Generale, Romania's second-largest lender in terms of assets, is seriously unsettling Banca Comerciala Romana's (BCR) market leader position in the banking sector.
The French group invested some €45 million in its network in 2007, which has affected its profit registered in this year's first nine months. Half-year results were the first sign of a possible change in the list of top Romanian lenders, when BRD-SocGen announced a profit higher than the entire BCR financial group.
BCR's total net profit in Q1 2007 amounted to €139.5 mln, while BRD obtained €133 mln only as a bank, due to a much more aggressive market strategy, which speculated BCR's efforts to integrate in the Erste group. BCR invested some €200 mln in its integration in the Erste group, while BRD-SocGen allocated lower amounts for investments that can be oriented in more efficient directions.
Estimates for the coming two years are favorable for the French company, which has 740 units, compared to BCR's 528.
The presidents of the two banks say they are not after each other's clients or market shares, although both admit that the battle for first place requires all possible weapons. "BRD's performance is net superior to that of its competitors, and we will try to maintain this leadership. However, BRD's objective is not to be the largest bank in ," Patrick Gelin, BRD's President and General Manager, told Business Standard. Andreas Treichl, Erste Bank's General Manager, said that "the French are and will be powerful competitors, but they are no threat to us."
- Insurance market stagnated in 2013 while GDP chare dropped to 1.3%
- The Romanian Leasing Market as of December 31, 2013
- Millennium Bank reports best results since its launch, helped by stronger banking income and cost cuts
- BCR cheapens First Home loans and lowers interest loans for loans in lei
- Millennium Bank's new Salary account clients receive up to 600 lei bonus and their utility bills' payment
- GarantiBank and Seamless introduce SEQR in Romania: the newest mobile payment solution
- Bancpost telecom services, now provided exclusively by Romtelecom and COSMOTE Romania
- Millennium Bank cards offer discounts in Domo stores
- BCR Supervisory Board reshuffles Management Board
- NBR decide to lower the monetary policy rate to 4.25 percent per annum
- Common appointments in Romtelecom and COSMOTE Romania
- Up to 5.5% annual interest rate for Millennium Bank's promotional three-month lei deposit
- Eurozone in recovery mode but gap between North and South still widening
- UniCredit Tiriac Bank and RBS Romania announce the successful completion of the retail clients' migration
- Millennium Bank grants First House loans in lei