Millennium Bank Romania posts less than expected losses in 2007, loans portfolio reaches EUR 37m

Millennium Bank Romania, the unit of Portugal's largest private bank Millennium bpc, issued loans worth 37 million euros from the moment it broke into the Romanian market in October last year to present and posted less than expected losses, a report from the mother bank reads.

When it rolled into the market, Millennium Bank estimated 29 million euros losses over 2007 and 140 million euros in the three years. Instead, losses stood at 25.9 million euros. The lender plans to step in the black starting 2011.

Deposits drew from clients in Romania cumulated 38 million euros at the end of 2007. At that time, the bank had 40 units opened in the country and added another one this year.  The bank opened units in Bucharest, Bacau, Brasov, Cluj, Constanta, Iasi, Oradea, Ploiesti and Timisoara.The bank's financial products are destined both to companies and population.

The lender broke the wallet open, investing more than 40 million euros to set up operations in Romania. The bank will invest some 300 million euros by the end of 2011, according to its development strategy.

The Romanian banking system is developing at a constant pace, making the country an attractive area for the international banking institutions, the general manager of Millennium Bank Romania, Jose Toscano said in November. The bank decided to become active in Romania after it lost the race for the acquisition of Banca Comerciala Romana, the country's No.1 lender by assets.

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