Raiffeisen looks to raise stakes in banking sector

By : Leo Broomfield

   Austria’s Raiffeisen Bank Polska (RZB Polska) plans to push its number of retail outlets to about 50 from 35 by the end of the year, bank officials said last week, adding that by 2003 it hopes to have 100 branches operating.

   The announcement follows the bank’s failed bid two months ago to buy into Bank Pocztowy. Despite that setback, the bank said it still planned to garner 10% of the retail market by 2010.

   Herbert Stepic, head of RZB Polska’s supervisory board, indicated the bank may be eyeing other financial institutions. “If possibilities come up on the Polish market we will consider them,” Stepic said.

   RZB Polska President Władysław Gołębiewski said RZB is looking at setting up a holding with up to six other major Western banks interested in Central and Eastern Europe. He said RZB would hold 51% of the holding along with partners that may include Netherlands-based international banking group Unico, which groups Deutsche Bank, France’s Credit Agricole and Germany’s Rabobank, all of which have Polish affiliates. Stepic said a merger of RZB Polska and another bank in the group could not be ruled out.

   Gołębiewski said RZB Polska has a working capital of zł. 455 million ($108 million). At the end of August, RZB Polska had zł. 2.7 billion ($642 million) in loans and zł. 2.9 billion ($690 million) in deposits.

   RZB Polska specializes in servicing international trade transactions, grabbing 10% of the market since setting up here 10 years ago.

   The bank said it plans to earmark about zł. 60 million ($14.2 million) for the development of its retail and Internet banking operations, the latter by the end of the year.