“I must specify that the bank is not for sale. I think I might have been misunderstood before,” Gabriels told Mediafax in an interview.
Banca Carpatica’s chief said he hopes to find a merger partner by September this year.
“We have an aggressive growth strategy and we aim for the top 10. We want to keep the Carpatica name, as well as our license.”
Banca Carpatica reported total assets exceeding 4 billion lei (EUR900 million) at the end of 2013, ranking the bank 20th in the local system, with a market share of some 1%.
“A merger is like a marriage. We need to find another well-capitalized institution that would give us a boost to a new rating category,” Gabriels said.
He said Banca Carpatica has sufficient liquidities and the right management and strategy to increase competitiveness and strengthen its presence on the local market, but it needs additional capital to fuel growth.
Banca Carpatica posted a net profit of RON38 million last year, 77% higher on the year. Net loans rose 4% to RON1.22 billion, while deposits increased 12% to RON306 million. The loan/deposit ratio was 55%.
Banca Carpatica has been in the spotlight recently after the central bank suspended the voting rights of two of its largest shareholders, namely Ilie Carabulea and Corneliu Tanase.
Carabulea was placed under house arrest for suspicion of bribery and influence peddling in connection to a case regarding the insurance company Carpatica Asig, part of the Carpatica banking and financial group. Tanase’s voting rights were suspended for having acted together with Carabulea.
Although the news didn’t affect Banca Carpatica’s relationship with its customers, the other bankers were worried about reputational and image risks, Gabriels said.
“Banks are not isolated institutions. We work with other banks, and they have been wondering about Carabulea and about our status, considering that 57% of the voting rights are suspended,” he said.
On the other hand, the recent events have prompted Banca Carpatica to move up its timetable for a potential merger.
“The strategy remains unchanged, but the timetable has changed. The shareholders’ approval [to search for a merger partner] already had a positive effect on our partner banks,” Gabriels said.