“As you know, Eurobank Group is a long-term and committed investor in Romania. Our group is well capitalized, having raised EUR3 billion in 2014, and has very strong investors as shareholders, such as Fairfax, Willbur Ross and Capital Research,” George Georgakopoulos told ZF.
Bancpost ranked 10th in the banking system in mid last year, with 3.3% market share (EUR2.6 billion assets). It lost market share during the crisis (from the 4.8% in December 2008) and conducted a thorough restructuring that resulted in half of its branches closing down.
“At Bancpost we are optimistic about the future: we did accelerated non-performing loan management in 2014 and have nearly completed our cost rationalization program. Bancpost is well capitalized, with strong liquidity position,” the Greek banker said.
Bancpost kept 166 branches and offices (including ten corporate centers) from the more than 300 it had at the end of 2011. The bank underwent a harsh restructuring process, following the several hundred million lei losses during the crisis due to the high volume of non-performing loans. Market sources say its bad debt stock stands at more than EUR1 billion.
Eurobank also owns a consumer finance and leasing company in Romania. As a group, it ranks seventh or eighth by loan stock, Bancpost’s CEO says.
“We expect to maintain our position in Romania as no 7 in deposits and 7 or 8 in loans, as a group.”
Bancpost had almost EUR1.9 billion deposits at the end of September 2014. Greek banks lost some of the deposits they held amid the sovereign debt crisis of Greece in 2012, but Bancpost was less affected because it kept its name after the acquisition by Eurobank.
(English version by Loredana Fratila-Cristescu)