The bank will open business centers in Cluj-Napoca, Timisoara, Oradea, Sibiu, Brasov, Ploiesti, Iasi, Constanta and two in Bucharest.
“The new business product for corporate clients aims to identify the best financial solutions in the current macroeconomic environment. With the development of regional business centers we aim to give companies better access to specific products, support the development of Romanian businesses and entrepreneurs and consolidate business relations with companies held by foreign investors,” said Bogdan Neacsu, Volksbank vice-president for the corporate and SME segment.
The bank targets a 20% increase in turnover on the corporate segment after client numbers rose 12% last year. At the end of 2013, the bank had a loan portfolio of EUR507 million on the corporate segment, 20% of its overall lending portfolio.
“The corporate and SME sector is starting to emerge from the crisis and it is very important that we ease access to financing to allow businesses to grow. 2014 may be the year of lending revival on this segment, considering rate have been cut to historical lows,” Neacsu added.
Volksbank must sell its Romanian subsidiary by the end of 2015, under a restructuring agreement. The Austrian mother bank has booked provisions worth EUR62 million for anticipated losses on the sale.
Volksbank Romania shareholders will add EUR250 million to the lender’s share capital by the end of the year, reaching EUR576 million, of which the Austrian group will contribute EUR128 million after constituting provisions in the first half of the year.
The local lender currently has a share capital of RON1.437 billion (EUR326 million), 99.99% owned by VBI Beteiligungs (Austria), which took control over the Romanian lender in October 2013, when Volksbank International, except the Romanian subsidiary, was sold to Russia’s Sberbank. Austria’s Volksbank owns 51% of VBI Beteiligungs, while Germany’s DZ Bank AG / WGZ Bank AG and France’s BPCE each own 24.5%.
Volksbank Romania’s revenues dropped 8% last year, from EUR130.3 million to EUR119.9 million. At the end of 2013, Volksbank Romania had assets of EUR3.09 billion, from EUR4.704 billion in 2012. The bank posted a loss of EUR103.6 million last year, 38.5% lower than in 2012. The bulk of the loss was generated by provisions.