UniCredit Tiriac Bank Eyes Doubling Retail Customers By 2015

04.11.2011 By Florentina Dragu

Romania’s UniCredit Tiriac Bank estimates its retail portfolio will double to over 1,000,000 clients until 2015, while the territorial network is expected to exceed 540 units, chief executive officer Rasvan Radu said Monday.

Romania's UniCredit Tiriac Bank estimates its retail portfolio will double to over 1,000,000 clients until 2015, while the territorial network is expected to exceed 540 units, chief executive officer Rasvan Radu said Monday.

"Our five-year plan includes adding at least 400,000-600,000 new clients so we can top one million clients on the retail segment. This is our objective until 2015," Radu said.

He said the bank plans to open at least 10 to 15 new branches in 2011, unless the economic climate allows for a larger expansion.

"At the same time, the bank estimates the retail portfolio will expand by 100,000 clients this year," Radu said.

UniCredit Tiriac Bank currently runs around 240 branches nationwide and employs over 3,000 staff.

Radu said bank interests are unlikely to decrease in 2011, adding that lenders that face liquidity shortage will continue to put pressure on interests, despite the central bank's recent move to lower minimum reserve requirements for foreign currency liabilities.

The measure freed EUR1.5 billion in the market, but it's unlikely to affect deposit interests, Radu said.

"I don't think the deposits market will unwind following the lower minimum reserve requirements; only when the European market will be more relaxed cand deposits will follow suit," he added.

The bank's chief said the central bank shouldn't rush to limit euro-denominated loans, because the measure would hurt mortgage lending, as well as long-term corporate loans.

"We don't have all the conditions to grant long-term loans in national currency and such a measure should only target short-term consumer loans. The mortgage lending would be killed by limiting forex loans," Radu said.

UniCredit Tiriac reported a net profit of 171 million lei (EUR1=RON4.1084) in 2010, on total assets of RON20.8 billion.

The bank is part of the Italian financial group UniCredit.