The Romanian bank is the only one among the group’s international subsidiaries to post losses, hurting the overall figure. The negative result was mainly triggered by costs related to loan losses, which came in at 25 million Israeli shekels (almost EUR5 million), up over 30% from the similar period of 2010.
Leumi’s half-year report notes the improvement of private banking operations in Romania as in Israel. Leumi operates through a 32-branch network covering around 24 Romanian cities. Obviously, the bank pays special attention to the Israeli clients with businesses in Romania, who are served through a specialized department.
Like other banks, Leumi wants to boost its portfolio of clients in the category of medium-sized companies with turnovers of above EUR500,000 annually and funding needs of at least EUR100,000.
Present in Romania since 2006, when it took over the former Eurom Bank for $46 million, Leumi has not stood out through a strong expansion strategy, keeping a discreet position on the market. At the end of June, the bank ranked 28th by assets, with a market share of 0.3%, slightly down from previous years.
For the 2011-2012 period, Leumi has ambitious strategic targets: to boost its loan portfolio above the market average, namely by 14% in 2011, up to 25% in 2013, reach a return on equity of 11% in 2013 and increase the weight of corporate loans to 64% of the portfolio in 2013.