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 s
