Alpha Bank- EFG Eurobank merger to create third largest lender in Romania.

By bne IntelliNews August 30, 2011
The merger of the two Greek financial groups EFG Eurobank and Alpha Bank, approved by the shareholders earlier this week, will have as a direct effect in Romania the merger of the 8th and 9th largest banks and the formation of the third largest local lender. IntelliNews Comment: The merger takes place at a time when the Romanian banks are already striving to streamline their operations by adjusting down their networks and personnel in line with subdued retail operations. Furthermore, even if the two banks are of a similar size in Romania, their profitability differs rather significantly. Finally, while BancPost is a former state-owned bank taken over by EFG, Alpha Bank Romania is the result of a greenfield investment. EFG Eurobank, owning in Romania the majority stake in BancPost bank and related financial services companies, reported losses of EUR 4.6mn from its Romanian operations in H1 compared to a net profit of EUR 10.7mn last year, according to the H1 financial results reported on its web site. The net assets of the group in Romania diminished by 9.5% ytd and 16.4% y/y to EUR 4.85bn at the end of June. The NPL, defined as loans with overdue payments in excess of 90 days, accounted for 16.4% of the total book loan of EUR 3.4bn at the end of June. On the other hand, Alpha Bank of Greece reported gross profits of EUR 5.4mn derived from its operations in Romania in H1, indeed 77.4% down y/y. The bank reported a NPL ratio in Romania of only 8.4%. The stock of loans increased by 15.3% y/y to EUR 3.5bn at the end of H1.
Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

Romania to spend EUR 37mn in 2013 to close down loss-making coal mines.

Romania's government has earmarked RON 163mn (EUR 37mn) worth of subsidies for 2013 under a programme aimed at closing down the loss-making mines of local company CNH located in the southwestern ... more

Romanias Hidroelectrica sells nearly 0.3TWh of electricity on free market.

Romanian state-controlled hydropower company Hidroelectrica sold on Thursday, March 21, in several separate contracts a total of 0.3TWh of baseload electricity deliverable between April 1 and the ... more

Romania to start privatisation of cargo railway company on April 6-8.

The Romanian government will publish the privatisation call for freight railway company CFR Marfa immediately after the consultants complete their work, probably on April 6-8, Romanian transport ... more

Follow Us On

Most Read

  1. Ukraine's birth rate plummets to 300-year low as country’s population collapses
    7 days ago
  2. EU finally boosts defence investment into arms production as Ukraine runs out of ammo
    1 month ago
  3. Fresh evidence suggests that the April 2022 Istanbul peace deal to end the war in Ukraine was stillborn
    8 days ago
  4. Don't mention the "D" word - Ukraine
    5 days ago
  5. Europe unlikely to tackle Russian LNG imports anytime soon
    2 days ago
  1. Russia could pay off its entire external debt tomorrow, in cash
    25 days ago
  2. Speculation swirls of “Men in Blue” in Crocus City Hall terrorist attack linked to FSB
    30 days ago
  3. Albanians campaign on social media to keep bus bridge created in freak accident
    1 year ago
  4. BRICS announce a blockchain-based payment system to create a common currency
    28 days ago
  5. Saudi Arabia to scale back plans for Neom city
    15 days ago

Reports

Dismiss