Banca Transilvania marks international expansion through Cyprus

— Gateway to Romanian stock market

 

A key milestone in the history of Banca Transilvania was the opening of its Cyprus branch, which essentially marks the Romanian bank’s first international expansion, culminating a successful year with many ambitious projects already accomplished.

In an exclusive interview with the Financial Mirror, Robert C. Rekkers, CEO of Banca Transilvania said the bank  intends to play an active role in the development of Romanian-Cypriot business relations and at the same time add value to the level of services offered to its growing list of clients.

“On the one hand, we are in Cyprus to offer attractive products and services to Cypriot companies and individuals and on the other hand, we are promoting abroad the advantages and the opportunities of the Romanian business environment in order to attract Cypriot investors to a market which, in my opinion, has much to offer,” Rekker said.

 

— Reputable bank

 

With a market share of 5.3% and more than 430 operational units all over the country, Banca Transilvania is the fifth largest bank in Romania in terms of assets, strategically located in the most developed economical areas.

“Our four major business lines (Retail, SMEs, Corporate and Medical Division) service a portfolio of one million active clients, who are benefiting from specialized products and services, as well as a highly trained and qualified banking staff.”

In September, Fitch Ratings upgraded Banca Transilvania’s outlook, from ‘stable and support’ to ‘positive’, the rating to ‘3’ from ‘4’. At the same time, the agency has revised Support Floor Rating to ‘BB- (BB minus) from ‘B+’. Its ratings are affirmed at Long-term Issuer Default Rating (“IDR”) ‘BB-‘ (BB minus), Short-term IDR ‘B’ and Individual ‘D’. The rating of Banca Transilvania reflects its significantly improved nationwide franchise, strong market position in Romania and in the SME sector, comfortable liquidity and improving operating environment. They also demonstrate competitive pressures on profitability and potential asset quality problems due to rapid loan growth.

In 1997, Banca Transilvania became the first Romanian banking institution to be listed on the Bucharest Stock Exchange. With a market value of EUR 1.5 bln, it is one of the most attractive issuers. The European Bank for Reconstruction and Development (EBRD) with 15% and the Chairman of the Council of Administration are two of its important shareholders.

Banca Transilvania has recently received two important awards, “The most attractive issuer listed on the Bucharest Stock Exchange” within the Capital Market Award Gala, and “The Most Successful Company on the Stock Exchange” granted by Bucharest Business Week for the most dynamic value growth on the market. These prizes come to acknowledge the bank’s continuous growth, its increased performance and transparency.

 

— Specialised services

 

Banca Transilvania, through its branch in Cyprus will offer specialized services of BT Securities and BT Asset Management, companies belonging to Banca Transilvania Financial Group.

BT Securities offers brokerage services, ranked among top 10 brokerage companies in Romania, whereas BT Asset Management, the second largest fund manager in Romania, offers efficient asset-management services, having ensured significant gains in 2007.

Besides housing and mortgage loans, Banca Transilvania offers a complete range of services and products – loans, deposits, cards- both for legal and natural persons.

While Rekkers said the aim of the Cyprus branch of Banca Transilvania is to service business originating in Cyprus, he did not rule out the possibility of using Cyprus as the bank’s base to expand activities in other countries.