Getin goes east

Getin Holding is not only expanding the scope of its activities in Poland, but also plans to conquer the Eastern markets, especially Russia and Ukraine.

"We want to go abroad very much and we plan to gain the capital anyway," said Leszek Czarnecki, Getin Holding's main shareholder. He said that the investments will be large, to the tune of tens of millions of dollars in each of the countries. The company says that should it expand into the markets of Russia and Ukraine, its activities would be mainly in the field of consumer finance.

In order to finance the venture, Getin may use the money gained from its new share issue for foreign investors. In its recent announcement, the company says that "due to the plans of intensive expansion on the foreign markets ... [Getin] intends to take steps aiming at a significant share issue on the international market. Such an issue could take place not earlier than the end of this year."

Getin Holding already has a foothold in Russia in the form of leasing company Carcade, in which Getin's share equals $20 (zł.62) million. "Our Russian company is developing in an excellent way and it is just asking for a bank to be acquired to go along with it," Czarnecki said at the beginning of May.

Getin Holding is now issuing K-series shares at the price of zł.1 per share. At the same time the company will also issue L-series shares directed solely to Leszek Czarnecki, who, in turn, will pass on to Getin his shares in TU Europa. As a result, Getin Holding will expand its scope of activities to insurance services.

Out of the whole Getin Holding group, it is Getin Bank which is recording the fastest growth of revenues and net profit. After the first five months of this year, profits have reached zł.59.7 million compared to zł.26.9 million in the same period of 2005. The result of Noble Bank, Getin's youngest baby, exceeded zł.19 million, zł.8 million of which was generated by the bank's financial advisory firm, Open Finance.