ATE Bank Romania, the former Mindbank, is set to focus on the retail segment in a bid to achieve an almost fivefold turnover increase in the next three years.
"We must get the number of individual customers in line with that of legal entities," Sergiu Manea, general manager with ATE Bank Romania, told ZF. As a short-term target, the bank must increase its market share in terms of assets to 1% from 0.2% at present.
The Agricultural Bank of Greece (ATE Bank), the fifth largest player on the Greek market, has, starting last summer, acquired several stakes in Mindbank, so that it now owns more than 73% in its share capital. The Greeks have already operated a significant capital increase worth over 20m euros, and in early spring appointed a new management team, designating Sergiu Manea as chairman. Manea had previously filled the deputy chairman position.
To gain ground on the retail market, ATE Bank is poised to expand its network to 100 branches in the next three years, from 12 at present. Manea estimates around 500,000 euros will be spent for the fitting out of each branch.
Four new branches are scheduled for opening in 2007 in Bucharest, with another 6 subsidiaries to be inaugurated in the rest of the country, in Arad, Ploiesti, Suceava, Bacau and Piatra Neamt.
A stronger presence should lead to an increase in the number of customers, to 22,000 by yearend from 12.000 at present. In 2008, the bank plans to considerably expand its customer portfolio, to 42.000.
At present, retail loans account for some 2% of a total volume of 150m RON (48.5m euros).
"Under the circumstances, we want to boost the total volume of retail loans to 50% in the overall volume of loans," explains Manea.
The volume of released financing should climb to 210m RON by December. In the next two years, an almost fivefold lending increase to 700m RON
