BRD-SocGen is continuing its branch expansion campaign in 2007, as well, planning to exceed 700 branches by the end of the year, although it has slowed down the rate of opening new agencies, according to Sorin Popa, deputy general manager of the bank, in charge of retail.
"We will continue to open branches, but at a much slower rate than in 2006. Beforehand, we had a mass-market approach, but now we are following an open strategy, which allows us to make quick decisions, based on opportunities, following a rigorous analysis of the potential of each new location. Even so, we will still exceed 700 branches," Sorin Popa told ZF, adding that the 600-branch level reached at the end of 2006 is an "optimal situation, which, however, can be improved".
He says all branches opened before September 2006 have already surpassed the breakeven point, with each new office requiring at least six months to become profitable.
"It takes much longer to reach the breakeven point is much slower now than in the 2004-2005 period, given the progression of the market, that is why we are very careful with every location," said Popa.
The head of BRD's retail division says every branch is strictly monitored month after month, and that so far, out of the over 450 small branches specialised in retail, BRD Express, only one was closed, and not for reasons of profitability, but due to its proximity to a better placed branch.
In April, BRD reached the 100-branch mark in Bucharest.
Starting last year, the second largest bank in terms of assets began to look at the rural area, as well, where it has set up around 60 mini-offices so far.
"The rural segment is going very well, and we have not had any situation until now, where it was necessary to relocate an agency. In choosing the locations, we take into account the population's incomes in that specific commune,"
