Marfin Popular Bank (CPB.CY) has completed the acquisition of a 50.04% stake in RPB-Holding, the parent company of the Russian bank OOO Rossiysky Promyishlenny Bank (Rosprombank) for EUR 83 mln.
Group Deputy CEO Christos Stylianides told the Financial Mirror in an exclusive interview that the Rosprombank addition expands the total branch network of Marfin Popular Bank Group to 478 worldwide from Cyprus and Greece to Russia, Ukraine, Romania, Serbia, UK, Malta, Estonia and Australia.
“It’s the perfect geographical diversification that will allow us to generate steady, year-after-year increase in our business and profitability,” he said.
As at 31 December 2007, Rosprombank had total assets amounting to EUR 297.5 mln, loans of EUR 157.9 mln and deposits of EUR 177.6 mln, while net profits amounted to EUR 6.3 mln and shareholder’s equity at EUR 53.7 mln.
Organic expansion
Stylianides said the Rosprombank acquisition has completed to a large extent the geographical positioning that the MPB Group wanted to have with emphasis now shifting to organic expansion of the acquired targets by increasing the number of branches and offering new products and services.
He added, however, that if and when a good opportunity arises, the Group will consider it. Referring to expansion plans previously promised in the Arab countries and the Gulf, Stylianides said such plans are still valid for the longer term, but there is nothing concrete yet.
He placed particular emphasis on the fact that the expansion drive is being made without the need to raise new capital from shareholders, relying instead on the Group’s strong capital and resources.
One third from new countries
Operations outside of Cyprus and Greece contributed 12% of Group profits as at June 30, but this figure will continue to rise as “our target is for the other countries to contribute 30-35% of profits in the next 5 years.”
The loan book in the new countries is also being expanded as evidenced by the first half 2008 results, said Stylianides who nevertheless stressed that prime emphasis is placed in ensuring that the quality of the loan book remains high.
He said the increased staffing needs will be met from local sources where MPB operates but also drawing from Group resources in Greece and Cyprus, adding that a specially set up division in Cyprus is working full time to support the Group expansion drive overseas.
One of the immediate tasks is the IT integration in all countries of Group operations, a process which according to Stylianides when completed, will allow for higher productivity and at the same time more flexibility to launch new products and services for the benefit of customers.
Stylianides concluded that the MPB Group remains committed to become one of the leading financial institutions in south east and east Europe.
