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OTP Bank Romania aims for 4%-5% market share in mid-term

OTP Bank Nyrt expects its Romanian unit to attain a 4%-5% share of the market in the mid-term, OTP Bank Romania CEO Frigyes Hárshegyi told news agency Rompres on Friday.

The bank currently has a 1.15% share of Romania's retail banking market, and controls 1.75% of the mortgage loan market. OTP Bank Romania plans to achieve a fast rate of growth by introducing new products and opening more branches, Hárshegyi said. The bank aims to expand its branch network from 51 to 70 by December and to 100 by the end of 2007.
Because of the rapid expansion and developments, the bank registered losses of Ft 1.667 billion in the first half of 2006, up from Ft 811 million a year earlier. In June, OTP Bank injected €20 million (Ft 5.54 billion) in the bank, raising its registered capital to €73.7 million (Ft 20.24 billion).
OTP bought its Romanian unit in July 2004 for $47.5 million (Ft 10.16 billion). At the time, the bank, called RoBank, controlled just 1% of the market.