No. 102, February 14th, 2008

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Profit, still a challenge...

The growth potential of the Romanian insurance market is no longer a secret for anyone. However, besides double digit growth rates, we must not forget one of the main problems of this industry: the lack of profit...

Reporting only gross written premiums and growths, the insurance market in Romania seems very much like an El Dorado for investors, but however...
If we take a look at the companies' profitability, things are not really that rose-coloured... Thus, only 20 insurance companies gained profit in 2006, according to the Insurance Supervisory Commission Annual Report. The total income of the Romanian insurance market was RON 175.44 million (EUR 51.88 million).

At the same time, 21 insurers posted losses, overall losses for 2006 in insurance reaching RON 243.97 million (EUR 72.14 million), so the financial result for the whole year was negative, of EUR 20 million.

Figures reported by insurers last year enables us to estimate the situation wouldn't change very much for 2007. So, big companies obtained lower profits, while some insurers posted significant losses.

Why there is still no profit? One of the possible reasons is that insurers still act on the ground of some 2000-2001 strategies, when market conditions called for market share... Also, some investors set up insurance companies whom they tried to place on top of the market in order to sell them afterwards.

We must not neglect the eternal problem of the claims rate in motor insurance, that negatively impact non-life companies' profitability.
Asking ourselves how long can an industry survive without profit, we have to point out that the domestic insurance market, of almost 18 years old, prepares itself to reach its much desired maturity.

"Now is the moment for insurers to make a change in the way they do business, from the market share focus to chasing profitability", Mihail TECAU, General Director of BCR Asigurari has recently stated.

Therefore, let's hope in 2008 the Romanian insurance market will reorient from the market share view to gaining profit...

by mihaela.circu@mxp.ro

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BCR Asigurari de Viata




Interview with Mr. Constantin TOMA,
President - General Director,

XPRIMM: How do you envisage the Romanian insurance market development by 2010?
Constantin TOMA:
Although I do not have the right to speak about the overall market and I would refer here to the non-life segment only, I anticipate the market will continue its growth. This particular statement is based on the big difference between the insurance penetration rate in Romania and the figures reported by developed countries. If Romania oscillates at about 2% - insurance penetration in GDP, western European countries swing somewhere between 8% and 10%, while the former communist states that acceded to EU before us, as Hungary, Czech Republic, Slovakia, Poland, already reached 4-5%.
I earnestly believe Romania cannot be an exception. In my opinion, this lag we have today between Romania and the other developed countries as regards the insurance industry could be eliminated even faster, even in spectacular growing rates, if we could get over certain psychological deficiencies...
However the market presents some perturbations in several sectors, especially in what concerns pricing policies which do not conform neither to the calculations to underlie these prices, nor to costs' level every company has and bases its products and insurance policies on.
From this point of view it is regrettable hundreds of millions of euros are wasted in an industry that came to be very interesting. Many people crave to work as employees in insurance, mistaken insurance with banks or stock markets and see only white collars and millions of euros... Everybody is impressed when you say you are working in an insurance company because they already have in mind the image of West European insurance companies. They even look at you "through green glasses" or respect you, without knowing that, in fact, you are just an employee, engaged in a coal face.
In many economic sectors we are pretty close to those countries and we must stay in line with this continuous growth in insurance services so that in the next 10-20 years frame to get even closer.
In this context we trust that an annual growth rate of 25%-30% would be reasonable. The markets' development vehicle will still be motor insurance, as in Romania the car has a central role in every persons' life. Plus, these cars are bought either through a credit or in leasing - so they will be compulsory insured. The industry would be happy to provide them protection. However, I hope other classes of insurance would gradually balance the result. For the moment though, motor insurance are and will remain the first violin.

XPRIMM: How do you see OMNIASIG in 2008, in this coal face you referred to?
C. T.:
I would rely on the team I am leading, to continue the same miraculous activity, grounded on some very healthy principles, based on an adequately strategy and objectives and, once again, I would rely on the quality of this team and their commitment to carry this task forward. I trust we will someday decide to stop wasting money and to strengthen this industry and the company we represent, to make our shareholders content, and why not, our customers; they will certainly be more satisfied and trust us more if our companies will come out with results that won't dishonour us anymore.
The customers we serve must have the chance to see the financial results as they are, to see how many these people do, how we managed to obtain this profit. Nobody gives it to us. I have strived to make it and on the strength of my team we succeeded. I said it before, the apparent success is bitter indeed.
To answer the initial question, our objective for 2008 is to maintain our top position. We have an over EUR 300 million target to reach and a EUR 12 million profit. I hope I will have the chance to fulfil these targets. And I also trust my colleagues, the other companies, will approach more cautiously the pricing issues and that we will first of all interact more. Then things will get better.
I especially wish that OMNIASIG will maintain as a top three company; of course I would be very happy if we could keep our current position but this is a permanent and hard battle; I don't want to make any predictions, but I feel myself obliged to fight for making my point.

XPRIMM: From which business line would you expect to gain a significant profit?
C. T.:
I, like well as the other insurers in the market, am taking an interest in first priority classes in what concerns profit: big industrial risks, general liability, accident insurance and even the CARGO line where we make some pretty good business. For 2008 I sincerely hope we will start obtaining profit from motor hull insurance also. Regarding this matter, we have already introduced franchise for motor hull insurance. I know this acerb competition has made this instrument, so normal, so necessary in a well balanced industry, to either disappear or be provided from the zero level. OMNIASIG brought this franchise at a reasonable level for Romania. Even more, I hope this example will be followed also by the other players. The franchise makes the customer more careful with his goods.
Besides this franchise we are now working at a system that will allow differentiate pricing for drivers based on the risk profile which would be implemented in the beginning of this years' second half at the earliest. This project started some time ago but was somehow timed out by this business environment.

XPRIMM: How do you expect OMNIASIG partnerships with leasing companies and banks to evolve, and especially with ERSTE?
C. T.:
We are already winding off partnerships with many leasing companies, to whom I would like to thank for the trust they have in OMNIASIG. I trust even more leasing companies will make partnerships with us, taking into consideration both our services' quality and the fact that there's nothing more to do than for we to make them an offer and for they to include us on their co-operation insurers' list.
Regarding, our cooperation with ERSTE Bank, I would rather avoid making any comments. We will see if the two financial institutions will decide whether and how this partnership would be favourable for Romania.

XPRIMM: Thank you!

by mihaela.circu@mxp.ro and

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Constantin TOMA
Mr. Constantin TOMA,
President - General Director,


Non-life insurance market - changing the tide
The Romanian life insurance market will continue to grow in 2008 with growth rates of over 25%. In these conditions, the non-life insurance ratio will remain constant at about 80% of the total market. This is the major conclusion drawn from the "PRIMM Insurance & Pensions - Forecast 2008" event, organized on the 5th of February by Media XPRIMM.
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by mihaela.circu@mxp.ro, 6.02.2008

The life insurance market - a huge leap forward!
The life insurance market will grow this year by 25%, mostly because of the rising on the population education degree regarding this topic, following the implementation of the reform of the private pensions. This development will continue in the following years, so that, in 2015, the life insurances will represent 50% of the entire market. This is the major conclusion of the "PRIMM Insurance & Pensions - Forecast for 2008" event, organized on the 5th of February 2008, by Media XPRIMM.
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by vlad.panciu@mxp.ro, 6.02.2008

Pensions 2008 - between politics and economics

The private pensions market, the compulsory one as well as the optional one, are at the beginning of the road, a delayed start, highly awaited and why not very promoted. The leaders of these markets have debated the current and future problems which have to be solved, all within an event organized by PRIMM - Insurance and Pensions.
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by vlad.panciu@mxp.ro, 14.02.2008

Motor insurance, on forefront!
The pressure generated by rising competition between the insurers regarding the motor segment and the growing claims ratio on this class are creating serious problems on the entire market.
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by mihaela.circu@mxp.ro, 11.02.2008

GROUPAMA buys Hungarian OTP's insurance arm
French insurer GROUPAMA will buy OTP Bank insurance arm OTP Garancia along with an 8% stake in Hungary's biggest lender, in a deal that gives OTP more cash to play with in its eastward expansion plans.
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by andreea.ionete@mxp.ro, 12.02.2008

Consolidation strategy for BCR Insurance
The Romanian company BCR Insurance will carry forward, in 2008, the process of consolidation the company's position on the national market.
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by mihaela.circu@mxp.ro, 11.02.2008

Good perspectives for the Romanian insurance brokerage industry
The Romanian insurance brokerage industry will pass through an excellent period, growing with the national insurance market, according to Bogdan ANDRIESCU, President of UNSICAR (The National Union of Insurance Brokerage and Consultancy Societies from Romania).
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by vlad.panciu@mxp.ro, 12.02.2008

Another insurance broker without authorisation
The Romanian Insurance Supervisory Commission Council (ISC) had decided, within a session held last week, the sanction of AQ Insurance Reinsurance Broker. Thus, lawfully, ISC decided to stop/revoke the licence for this insurance brokerage company.
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by mihaela.circu@mxp.ro, 13.02.2008

ASITRANS Euroins is opting for franchise
The Romanian ASITRANS Euroins intends, starting this year, to develop its activity by using a franchising system.
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by mihaela.circu@mxp.ro, 13.02.2008

PRIMM - Insurance & Pensions Magazine at the start line in 2008!
The PRIMM's magazine editorial team is preparing to mail the first issue for 2008 of the most popular insurance and private pension publication in Romania to all its readers.
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Click here to order!
by oana.neula@mxp.ro, 14.02.2008

ASIROM is preparing for a double force administration
The Romanian insurance company ASIROM will have, soon, a double force administration system with a Supervisory Council and a Directorate.
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by mihaela.circu@mxp.ro, 14.02.2008

The private pension's lottery is still available
After the Government assembly (6th February 2008), the decision was to keep the initial formula of random repartition for Pillar II. The repartition is based on the market share criteria for the four month of adherence, in the period 17 September 17th 2007 - January 17th 2008.
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by liviu.huluta@mxp.ro, 7.02.2008

Collaboration between the Balkans insurers
To the Greek Insurance Association - EEAE initiatives, in February 4th 2008, in Salonic, took place the meeting between four professional insurers associations from Balkan region.
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by mihaela.circu@mxp.ro, 6.02.2008

BCR Life bets on bancassurance
The Romanian company BCR Life will apply, during this year, a business model based on life insurance distribution through bancassurance system.
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by mihaela.circu@mxp.ro, 8.02.2008

Some more insurance intermediaries
Starting this week, the Romanian insurance market has two more insurance brokerage companies.
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by mihaela.circu@mxp.ro, 8.02.2008

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EUROINS enters in Macedonia
EUROINS Insurance Group (EIG), the Eurohold Bulgaria's subsidiary, has received permission from Ministry of Finance of Republic of Macedonia for acquisition a majority share in Macedonian general insurance company MACOSPED Osiguruvanje, FOCUS News Agency informed. According the terms of the deal EUROINS acquires 83.25% of MACOSPED Osiguruvanje capital for EUR 7.3 million. The transaction is going to be finalized next week.
MACOSPED Osiguruvanje is the sixth insurance company in Macedonia by market share (4.25%). It was established in 1995 and has 10 regional branches. The head office of Macosped Osiguruvanje is situated in Skopie.
Macedonian insurer has wrote EUR 4.6 million in premiums in 2007 (or 27% growth towards 2006), according to preliminary financial reports and amountes a net profit of EUR 700 000.
12 companies operate on the Macedonian insurance market, which collected EUR 90 million premium income for 2006.
The acquisition of Macosped Osiguruvanje is the first investment of EIG in Macedonia. At the next stage is provided acquisition of leasing company, which will be integrated with the insurance company analogous of successful model in Bulgaria and Romania.
EIG is subsidiary holding company, which consolidates EUROHOLD Bulgaria insurance activities. EIG is a major shareholder of 3 insurance companies: EUROINS Bulgaria, EUROINS Romania (Asitrans Asigurari) and health assurance company St. NIKOLAY (Bulgaria).
At the end of 2007 EUROHOLD Bulgaria' market cap exceeds EUR 200 million. Except EIG, the Holding portfolio includes also more than 20 companies, which are leaders in Bulgaria in leasing servicing, selling of new automobiles, investment intermediation etc.
EIG is Eurohold Bulgaria's vehicle for expansion in the general insurance sector on the Balkans. The short-term goal according its investment strategy is achieving 5% market share in the region.
by andreea.ionete@mxp.ro, 13.02.2008

Foreign insurers doubled their capital in Rusia
The share of the foreign insurance companies in the cumulative capital of the Russian insurers has increased twice in 2007 and has reached 9%, or EUR 428, 5 million - the Head of Federal Service of Insurance Supervision, (FSIS) Ilya LOMAKIN-ROUMYANTSEV has declared.
"In the past year we were witnesses to an important growth of the foreign capital in the cumulative capital of the insurers, caused by big transactions and aquisitions of non-residents in Russian insurance compaies. I asumme that activity of the foreign companies on escalating capitals, for example, can increase as approaching exhaustion of a quotes for foreign insurers (now for non-residents in the Russian insurance market it makes 25%), ROUMYANTSEV noted.
Also, he mentioned that almost half of foreign capitals that come on insurance segment of Russia are based in Chyprus.
According to FSIS, 49,4 percents of the foreign capital are originary from Chyprus, 19,7% - from Germany, 9,9% - from Great Britain, 6,8% - Austria, 5,3% - Ukraine, 2,4% - Netherlands, 2,3% - France, 1,5% - USA.
In 2006 there were 6 foreign insurers that have received insurance licenses on the Russian market.
In 2007, insurance companies have generated EUR 21,2 billion in premiums, an increase by 25,1 % compared to 2006, and paid EUR 13,1 billion in claims, up by 34,3%. The total rate of payments has increased from 57% in 2006 to 62% in 2007.
On December, 31st, 2007 in the uniform state register of subjects of insurance business have been registered 857 insurance organizations (in 2006 - 918).
by irina.galasanu@mxp.ro, 12.02.2008

TRIGLAV anounced a 15% market share in SE Europe
Zavarovalnica TRIGLAV, Slovenia's largest insurer, holds a 15% market share in SE Europe, according to a statement made by TRIGLAV chairman Andrej KOCIC to the press as he presented the group's unconsolidated business results for 2007, Slovene Press Agency reports.
KOCIC noted that TRIGLAV is the biggest insurance group in the region, recently joined by two new insurers, KRAJINA Kopaonik from the Republic of Srpska in Bosnia-Herzegovina and VARDAR Osiguranje from FYROM.
The group founded a company for pension insurance in Serbia and a new subsidiary in Slovakia. Also, TRIGLAV was present in Slovenia, Croatia, Bosnia-Herzegovina, Serbia, Montenegro, FYROM, the Czech Republic and Slovakia.
The core company, Zavarovalnica TRIGLAV, generated EUR 707.6 million in premiums in 2007, a 7% rise over 2006, and paid EUR 367.6 million in claims, also 7% more than in 2006, with a market share in Slovenia at 42.9%.
The remaining companies within the group also managed to increase their market shares in 2007.
TRIGLAV Zdravstvena Zavarovalnica, specialized on health insurance segment, which operated in the black for the first time last year since being set up in 2003, upped its share in health insurance to 15.2% and collected EUR 51.6 million in premiums.
Croatia's TRIGLAV Osiguranje increased the amount of collected premiums by 18% to EUR 51.3 million and is aiming for a 16% rise in 2008. Serbia's TRIGLAV Kopaonik Osiguranje managed to collect EUR 14.4 million in premiums, 26% more than in 2006, while Montenegro's LOVCEN upped its amount of collected premiums by 16% to EUR 34.2 million.
TRIGLAV Pojstovna, from the Czech Republic, increased the amount of its premiums by 25% to EUR 19.5 million and is nearing a 1% market share. KRAJINA Kopaonik totalized EUR 3.7 million in premiums, FYROM's VARDAR Osiguranje posted EUR 28.2 million and TRIGLAV BH osiguranje from Sarajevo EUR 15.2 million.
TRIGLAV chairman, Andrej KOCIC mentioned that the company is planing to continue its expansion in 2008, aiming to raise the total amount of collected insurance premiums to "the magic EUR 1 billion mark".
by oleg.doronceanu@mxp.ro, 13.02.2008

A new acquisition for VIG in Ukraine
Austrian insurer VIENNA Insurance Group has completed its acquisition of a majority stake in UKRAINSKA Strakhova Grupa, acccording to recent press-realease of the insurer.
After approval from relevant authorities, TBIH Financial Services Group N.V., in which VIENNA Insurance Group is a majority shareholder, now owns 62% of UKRAINSKA Strakhova Grupa. The value of the tranzaction came to USD 50 milion.
The Ukrainian insurer is the second largest player in motor third-party liability insurance in the Ukraine market, the Vienna Insurance Group said.
The shares were acquired from companies associated with the UKRGASBANK, with the remaining shares expected to be sold to TBIH within the next five years.
The Vienna Insurance Group has been active in the Ukraine since 2004. In addition to the UKRAINSKA Strakhova Grupa, other Vienna Insurance Group companies in the Ukraine include two property insurance companies, KNIAZHA and GLOBUS, and life insurance company JUPITER.
by andreea.onete@mxp.ro, 13.02.2008

All-Russia Conference on Reinsurance, at the 12th Edition
The 12th All-Russia Conference on Reinsurance, one of the most important insurance events in Russia and CIS is getting closer. This year, between the 27 and 28th of march, the insurers, reinsurers and brokers with business in Eastern Europe and Asia have made their schedule to participate at the 12th edition of the reinsurance conference held in the President Palace, Moscow.
The PRIMM Insurance&Pensions Magazine is a Media Partner of the Conference.
The 12th All-Russia Conference on Reinsurance has become a major forum for exchanging opinion, formulating the reinsurance community's consolidated positions on key issues, establishing contacts between businesses and people and conducting dialogue between professionals and government authorities.
The attendance of the last year's conference included over 442 members from 185 companies and government agencies from 18 countries - Azerbaijan, Bahrain, Belarus, Czech Republic, France, Germany, India, Indonesia, Kazakhstan, Latvia, Malaysia, Poland, Russia, Switzerland, Transdniester Moldavian Republic, Ukraine, United Kingdom and Uzbekistan.
The conference captured the attention of insurers' unions and associations, business community, government authorities, and numerous editions and electronic media.
by oleg.doronceanu@mxp.ro, 14.02.2008

Strength and stability for PARTNER Re in 2007
German-based insurer PARTNER Re announced its financial results for 2007, showing a USD 3.8 billion net premium income, up by 2% compared to the equivalent period of the previous year, and paid USD 2,08 billion, an increase by 1,4% compared to 2006.
Total revenues for the full year 2007 were flat with 2006 at USD 4.2 billion; including USD 3.8 billion of net premiums earned net investment income of USD 523.3 million, and net realized investment losses of USD 72.5 million.
"We had another excellent year in 2007. We closed the fourth quarter with strong results despite challenging capital markets conditions, and we enter 2008 in a position of strength and stability. We grew our book value per share by 21% for the year, and over a five-year cumulative period achieved 15% growth in book value on a compounded annual basis, in addition to an average annual dividend yield of 2.3% over the five-year period. In addition, we recently announced a 7% increase in our common stock dividend, marking the fifteenth consecutive year that we have increased our annual dividend", Patrick THIELE, President &CEO, PARTNER Re, noted.
Non-Life net premiums written in 2007 came to USD 3.2 billion, flat with the same period in 2006. The combined ratio for the full year was 80.4% compared to 84.4% in 2006. The full year technical result was USD 842 million, compared to USD 700 million for the same period in 2006.
The Life segment, which writes business primarily in Europe, Canada and Latin America, reported an increase of 17% in net premiums, up to USD 569 million, with an allocated underwriting result of USD 21 million, compared to USD 29 million for the comparable period in 2006.
PARTNER Re is a leading global reinsurer, providing multi-line reinsurance to insurance companies, with total assets that amounted USD 16.0 billion in 2007 (increase by 7. 4%) and total capital totalized USD 5.2 billion.
by irina.galasanu@mxp.ro, 10.02.2008

Moscow International Reinsurance Congress
Reinsurance markets of the CIS, Baltic and CEE countries are one of the world's most rapidly growing regions with gross written premiums totaling over EUR57 billion in 2006.
Topics as strengthening and developing the reinsurance industry in the region, integration of national reinsurance markets in the global market as well as fostering modern technologies and raising investment appeal of the region are the main goals of the Moscow International Reinsurance Congress.
The event is organized by the Russian Polis - Information Group jointly with the Transsiberian Reinsurance Corporation on March 25-26, 2008.
The PRIMM Insurance&Pensions Magazine is a Media Partner of the Conference.
The event aims not just to outline the challenges that the reinsurance professionals faced throughout the last year but, more important, find the ways to meet them and, in particular, discuss the prospects for cooperation with reinsurers from CIS and other nations.
The list of invited speakers includes national regulators, experts and senior managers of national and international reinsurance, brokerage and insurance companies from Western and Eastern Europe as well as CIS and the Baltics.
by oleg.doronceanu@mxp.ro, 31.01.2008

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Russian Polis

Smaller banks attack top five on the savings segment
The decision by the National Bank of Romania (BNR) to increase the key interest rate was anticipated by most of bankers. Many of them raised their interest rates immediately after BNR's announcement, although implementing such a decision takes at least two weeks.
The highest raise in interest rates on savings was made by smaller banks, who are aggressively attacking the five top players. PIRAEUS Bank, VOLKSBANK, BCR, and UNICREDIT Tiriac Bank were fastest to react, while other financial institutions are still analyzing how much to raise interest, with each day of delay costing a percentage of market share.
Fourth-largest player, Banca TRANSILVANIA, effected the most recent increase to 7 percent in RON deposits with one-month maturity, and to 7.5 percent in RON deposits with a three, six, nine and twelve-month maturity, according to a press release sent to Business Standard. In this way Banca TRANSILVANIA is attempting to respond to rises in interest rates by its competitors, the most aggressive being LIBRA Bank, a second-tier player, offering the best interest for RON deposits with one-month maturity, at 7.25 percent.
ING Bank Romania raised interest for ING Card Cont'ROL by a yearly 6.3 percent. This is one of the highest current account interest rates on the Romanian banking market, calculated daily and transferred to the account at the end of each month, according to a press release sent to Business Standard.
Romanian Commercial Bank raised interest on RON and EUR time deposits by 0.8 percent. The bank maintained the same interest for loans in EUR with fixed interest.
BANCPOST is leader for interest on deposits with three-month maturity, although the 9 percent is promotional, and the bank is likely to revert to its initial interest rate of 7.4 percent.
LIBRA Bank and ALPHA Bank have the highest interest at an annual 7.5 percent. With 8 percent, ALPHA Bank is top on RON deposits with six-month maturity, while LIBRA Bank offers 7.75 percent interest for such deposits and Banca Romaneasca 7.70 percent.
ALPHA Bank is leader in terms of RON deposits with one-year maturity, with 14 percent interest, while LIBRA Bank, Romanian International Bank (RIB), and CREDIT EUROPE Bank offer 8 percent for RON deposits with one-year maturity.
by Business Standard, 12.02.2008

Private clinic business increased 30-300%
The business of private clinics posted spectacular growth in 2007, as medical clinic chains increased their business from 30 to 300 percent. Many of them also announced a doubling of their network or subscribers. Players on the market are estimating a similar growth rate in 2008.
Turnover posted by the top 10 companies in the field in 2007 amounted to some EUR 70 million. The private health market is estimated to be worth about EUR 250 million.
"Major growth is possible for small companies, while for mature companies a 30-40 percent growth rate is impressive, although this is dependent on massive investments. If we compare the value of investments to that of turnover, the perspective is not quite so rosy", said the General Manager of the HIPERDIA clinic network, Tiberiu ROTH.
A new trend registered last year was expansion outside Bucharest. Top players on the market, such as Unirea Medical Center (CMU), MEDSANA, MEDICOVER and MEDLIFE, have all opened clinics in major cities and are preparing further openings this year. "It takes thousands of clients, at least two thousand, for an investment in a multi-functional clinic to be viable", MEDICOVER's General Manager, Marina OTELEA said.
by Business Standard, 12.02.2008

Official launch: NOKIA Romania will produce phones for Middle East and Africa
The Nokia factory in Jucu, Cluj county - Romania officialy opened on Monday in the presence of various Finnish companies and local authorities. The NOKIA production would target Middle Eastern and African markets mainly, NOKIA officials say. NOKIA Senior Vice President Juha PUTKIRANTA said that Romanian workers at the NOKIA plant receive an attractive salary package and hot meals, but refused to comment on other production details.
NOKIA officials argue that the Romanian factory will set up the necessary software on the models produced.
Workers in the factory are contractually obliged not to reveal information about work at the company. However, conditions are very good since officials plan to built football and basketball fields for worker's free time.
Company officials said the Jucu factory now employs 350 people and the number would grow to 3.500 by the end of the year.
by hotnews.ro, 12.02.2008

EFG Eurobank's profit tops Romanian banks total
Net profit of the Greek EUROBANK EFG group, majority shareholder of Romania's BANCPOST, increased last year by 32.1 percent to EUR 851 million, surpassing the EUR 820 million target, due to business growth in all Eastern European countries. EFG's profit volume exceeds that realized by all players on the local banking market, which totals a little over EUR 822 million.
EUROBANK EFG posted net profit of EUR 73 million in Eastern Europe, higher than the EUR 60 million target. The group was present on eight markets by the end of 2007, with total assets of EUR 68 billion, a network of over 1,500 units, and 22,000 employees. Business evolution in Greece and Eastern European countries led to profits that exceeded management forecasts, EFG EUROBANK says.
The group's representatives showed that they target net profit of EUR 1.03 billion in 2008 and EUR 1.55 billion in 2010. Its total loan portfolio increased by 33.7 percent, to EUR 46.7 billion, due to demand on Greek and Eastern European markets, according to a bank communique. Business on the Romanian market brought EFG EUROBANK a net profit of EUR 28.8 million, due to a doubling of bank assets and a tripling of loans.
by Business Standard, 13.02.2008

MORGAN STANLEY strengthens its position as Bucharest bourse shareholder
MORGAN STANLEY, one of the top investors in Bucharest Stock Exchange (BVB) shares, acquired a further 9,796 BVB shares last week, worth some EUR 0.4 million.
Following this acquisition, the investment bank controls some 1.5 percent of BVB's share capital directly, and 4.26 of shares with HTI Valori Mobiliare, making it BVB's top investor.
At the end of last year, MORGAN STANLEY acquired 1.28 of BVB's share capital, worth some EUR 2.5 million, and the investment bank announced at the end of January that it had acquired 51 percent of HTI Valori Mobiliare, which in turn owns 2.76 percent of BVB shares.
by Business Standard, 13.02.2008

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XPRIMM Newsletters


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