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Banks, main targets of Austrian financial groups

Austrian financial groups are among the strongest foreign investors in the Romanian banking system, with three of Romania's four largest banks running on Austrian capital - BCR, Raiffeisen and Volksbank.

The privatisation of the Romanian banking system allowed global players to enter the Romanian market, and Austrian companies reached a 22 percent share in the Romanian banks' assets in late 2007. The share this year could be even higher, given that Volksbank has advanced to number four in the rankings of the Romanian banks by assets.

The local subsidiary of Austrian Volksbank, which started up in business in 2000, has recorded a strong advancement over the past three years, says daily Ziarul financiar. In two years, the Volksbank assets advanced seven times, to 4.5 billion euros, and the local network has expanded four times, to 263 outlets in June 2003. With an aggressive credit business, Volksbank made it to number four in the rankings of banks operating in Romania, as of mid-June 2008, up from number 14 by market share two years previously.

The most important foreign presence on the list of the Romanian banks' capital is Austrian group Erste, which in 2005 won the privatisation of Banca Comerciala Romana (BCR), the largest bank in Romania. As of June 2008, BCR owned assets worth 16.6 billion euros, with a market share of 21.6 percent. The bank can boast of the highest 2008 productivity per employee rate in Romania, as each employee contributed nearly 21,600 euros towards the bank's profit. Data with the National Bank of Romania (BNR) indicate that the largest bank in the system recorded a net profit of 206.6 million euros in the first half of 2008.

Raiffeisen is number three in the rankings of the largest 42 banks in the Romanian banking system, with an H1 2008 market share of 5.9 percent, for assets worth 4.57 billion euros. Raiffeisen has recorded the best return on equity rate of all the top banks - 33.4 percent, compared with an average return on equity rates of 11.4 percent in 2007.

Amidst the ongoing global financial crisis, the Austrian Government talks about injecting capital worth 15 billion euros in Austrian banks plus guarantees worth 85 billion euros. The Austrian Government will also fully guarantee individual deposits with Austrian banks. Raiffeisen Bank CEO Walter Rothensteiner says the bank can afford to meet the 2008 capital requirements without resorting to the government plan.

The Austrian presence in the Romanian banking system is also provided by Porsche Bank, the only bank in Romania specialising in auto loans. Established in 2004, Porsche Bank grants financing for the purchase in Romania of automobiles made by the Volkswagen group and assists the network of traders of the Porsche Romania importer.

 

Sursa: http://www.rompress.ro

Tags: austrian assets share billion euros romania percent volksbank financial romanian system banks bnr bcr

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