After years of reforms Romania has finally managed to stabilize the macroeconomic situation, gained back trust of foreign investors and is drawing increasing FDIs. Improved condition of the economy has a very favorable impact on both: the corporate sector and the employment market. Low unemployment rates together with growing wages, have a strong positive impact on the wealth of individuals and contribute to the nearly explosive growth of main banking volumes. All this makes the Romanian market an extremely attractive option for international players looking for attractive investment and expansion opportunity in the financial services area.
Scope of report:
"Banking Market in Romania 2005" is a quite comprehensive publication covering the most important issues characterizing the current state of the Romanian banking market, describing recent trends and showing present market structure with short term forecasts. This report puts together a lot of various facts on the market, and therefore it is a perfect reference point for most of needs of anyone interested in it.
This report has been prepared in the pdf format, as a horizontal presentation, with easy to follow structure, consisting mainly of charts and graphics with little text.
Share of text has been intentionally reduced to the key statements and conclusions only
1. Macroeconomic overview
Slide 1: Background: demographics, political situation, geography
Slide 2: Basic macroeconomic figures 2000-2004 with forecasts up to 2006
Slide 3: Foreign trade & current account gap 2000-2004 with forecasts up to 2006
Slide 4: FDI in Romania 2000-2005*, recent announcements
Slide 5: Market interest rates 2000-2005*
Slide 6: Stock market performance and capitalization 2000-2005*
Slide 7: Labor market statistics 2000-2005*
2. Banking market
2.1. Banking market - regulatory overview
Slide 8: Mandatory reserve policy 2000-2005*
Slide 9: Banking regulatory framework: Deposit Guarantee Fund
Slide 10: Banking regulatory framework: Credit Information
Slide 11: Capital adequacy ratio and non-performing loans
2.2. Banking market – general trends
Slide 12: CEE banking markets overview: growth and development stage, country groups, 2004
Slide 13: Banking assets: nominal values and GDP penetration, 2000-2005*
Slide 14: Banking assets: real growth and values in EUR, 2000-2005*
Slide 15: Assets per capita and GDP penetration: CEE comparison, 2000-2005*
Slide 16: Banking deposits evolution, 2000-2005*
Slide 17: Banking loans evolution, 2000-2005*
Slide 18: Banking market concentration, Herfindahl-Hirschman Index, 2004
Slide 19: Commercial banks grouping by ownership, 2004: number of banks, assets, equity
Slide 20: Top 10 banks ranked by assets, 2004, future consolidation of HVB-Uniredit calculation
3. Retail banking
Slide 21: Personal financial assets: growth 2002-2004, forecast for 2006
Slide 22: Personal financial assets: structure and value per capita comparison with Poland, 2004
Slide 23: Retail deposits evolution, 2000-2005*, split by currency and maturity
Slide 24: Mutual funds market, 2000-2005*, forecast up to 2006, top players as of 2005*
Slide 25: Personal financial liabilities: growth 2000-2005*, comparison to Poland
Slide 26: Retail loans evolution, 2000-2005*, split by currency and maturity
Slide 27: Retail loans by type, 2005* (mortgage, consumer loans), comparison to other markets: Portugal, Poland
Slide 28: Top players on the retail market, 2004
Slide 29: City of Bucharest – importance of the Romanian capital on the retail banking market
4. Banks profitability
Slide 30: Yield curves (BUBOR), 2002-2005*
Slide 31: Banking spreads evolution, 2000-2005*
Slide 32: Banking system profitability tree, 2002-2004: income statements details shown as percent of average assets, cost income ratio and return on equity added
Slide 33: Banking system and 3 large banks comparative profitability tree, 2004 : income statements details shown as percent of average assets, cost income ratio and return on equity added
5. Top banks profiles
Slide 34: Bank profiles: Banca Comerciala Romana - overview
Slide 35: Bank profiles: Banca Comerciala Romana - financials and other
Slide 36: Bank profiles: BRD - Groupe Societe Generale - overview
Slide 37: Bank profiles: BRD - Groupe Societe Generale - financials and other
Slide 38: Bank profiles: Raiffeisen Romania - overview
Slide 39: Bank profiles: Raiffeisen Romania - financials and other
Slide 40: Bank profiles: Casa de Economii si Consemnatiuni CEC - overview
Slide 41: Bank profiles: Casa de Economii si Consemnatiuni CEC - financials and other
Slide 42: Bank profiles: ING Romania - overview
Slide 43: Bank profiles: ING Romania - financials and other
6. Other issues
Slide 44: Romanian banking market entry options
* Note: 2005 data is either forecasted or real data as of September 2005
- Since the beginning of 2004 the Romanian banking market has been experiencing rapid growth. With banking volumes almost doubling during last two years Romania has become the unquestioned growth leader in the whole CEE region
- Looking into the future, Romania seems to remain an extremely interesting market. Recent privatization tenders have shown that a number of international banking groups, including: Fortis, BCP, Intesa, Deutsche Bank, MdP Siena, Dexia, Eurobank, Erste, NBG, OTP and Raiffeisen would like to enter the market
- 9 out of top 10 banks, representing almost 80% of banking assets in the country will be soon in hands of international players. As a result competition is likely to increase significantly
- Fortunately, the nature of the Romanian market, which is still far from saturation, with volumes growing up to 50% y.o.y. and millions of unbanked individuals makes still a lot of attractive entry options. "Greenfield" or acquisition of 2nd league player are the most obvious strategies to consider
Banca Comerciala Romana S.A.
Banca Romana Pentru Dezvoltare - Groupe Societe Generale S.A.
Raiffeisen Bank Romania S.A.
Casa De Economii Si Consemnatiuni S.A.
ING Barings Romania S.A.
HVB Unicredit Romania
ABN AMRO Bank (Romania) S.A.
Banc Post S.A. HVB Bank Romania S.A.
Alpha Bank Romania S.A.
Banca Transilvania S.A.