“We mainly target organic growth but we’re also looking at acquisitions. We’ve looked in Romania and neighboring countries but we can’t built strategy on acquisitions alone, we need organic growth as well,” Getin Holding CEO Piotr Kaczmarek said Wednesday at the launch of the new bank.
“Reaching the top 10 in two-three years is doable. This was a good time to enter the Romanian market, as other banks have trouble with their portfolios and we come with fresh products. Romania is one of the largest markets in the EU, with low banking rate among the population and therefor large growth potential,” said Kaczmarek, adding the Romanian banking market is considered stable and predictable.
Ideea Bank mainly targets individual customers and SMEs, especially small businesses.
The bank recruited around 100 employees in the past year and has 35 branches.
“Our strategy is to develop on alternative channels, especially online, not so much through expansive territorial coverage, because we nee dot be efficient,” said bank executive president Ana Elena Cernat.
In turn, Idea Bank CEO Stephen James Orlesky said 35 branches are not enough for the bank to make the top 10.
“We’re looking at areas where we can open territorial branches to support development and growth. We’re looking at Oradea, Arad, Sibiu, where we are not present yet,” said Orlesky.
Regarding acquisitions, the bank CEO said there are a few interesting talks under way, but did not provide further details.
Kaczmarek said an acquisition is unlikely this year, as the bank needs to establish itself on the market first.
“We are ready for growth, we understand the required resources to make the top 10-15 and we’re ready to put up the capital should we see an investment opportunity in an other bank or company,” said Kaczmarek.
In May 2014-February 2015, the bank attracted deposits of around EUR100 million and expects further growth. Its assets are expected to grow from the current EUR600 million to around EUR900 million at the end of next year, said Kaczmarek.