BGZ bank plans to develop in small and medium towns

APA - Austria Presse Agentur
opublikowano: 21-03-2006, 11:16

Warsaw (Puls Biznesu) – BGZ, the state-owned bank, is implementing its new strategy, which should allow it to have PLN 1 billion (EUR 257m) of mortgage loans.

Warsaw (Puls Biznesu) – BGZ, the state-owned bank, is implementing its new strategy, which should allow it to have PLN 1 billion (EUR 257m) of mortgage loans.

In 2008, Bank Gospodarki Zywnosciowej (BGZ), the main provider of banking services to the Polish agribusiness sector and to rural areas, wants to have 5 percent market share in the market as far as sales from banking operations are concerned.

“We assume expansion in small and medium-sized towns first of all. The market share there will be higher there: of 20-40 percent. We are not planning expansion in big cities although we can see our target groups there”, Jacek Bartkiewicz, BGZ CEO said.

The bank is testing its new strategy.

“We have developed it with our strategic investor: the Dutch Rabobank group. We are running a pilot program in a chosen region in order to test new procedures and check if our products are welcome and can generate the planned sales increase”, Jacek Bartkiewicz said.

The strategy provides, among others, for expansion in the mortgage loans market. Last year, BGZ had PLN 640m of them. This year, the portfolio has already grown to PLN 750m. Till December, it may be PLN 1 billion. The bank will also increase its network from 254 to 304 outlets.

The results of the new strategy will be seen in 2007. Last year, BGZ had PLN 85m of net income, much worse than incomes generated by similar banks but the best in years for BGZ.

“I would be happy if the income grew 10 percent a year constantly for several years”, Jacek Bartkiewicz added.

(PLN 1 = EUR 0.257)

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Podpis: APA - Austria Presse Agentur