Austria’s Raiffeisen Zentralbank (RZB) has expanded its role in central and eastern Europe with the 100% acquisition of Albania’s largest bank, the Savings Bank of Albania. Following the failure of earlier attempts to privatise the bank, plans were announced by the government last September to sell it by tender and RZB paid $126m for all the bank, representing a 2.5 multiple ofbook value.
Albania, with a population of more than three million and a GDP per capita of $1565 in 2002, is an infant economy with a significantly under-banked market. Real GDP growth reached 5.5% in 2003 and RZB analysts forecast 5.3% growth this year.
Savings Bank, which had total assets of $1.37bn at the end of 2002, was the last remaining state-owned bank and had an estimated 54% share of the banking market.
“We believe that this is a very positive signal to other international investors,” said Albanian prime minister Fatos Nano at the April 16 signing ceremony. “I expect that RZB’s commitment will increase the competitiveness of the Albanian banking sector and result in an enlargement of the range of banking products.”
