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Bank Constanta to Report Q1, 2012 Financial Results

Published: April 30, 2012 | 8:49 am
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Bank Constanta is the only microfinance organization in Georgia that has turned into a banking institution. Today, the bank offers a full package of banking services to micro, small and medium size enterprises, also different physical and juridical persons through its 30 branches operating all over the county.

Constanta was the first organization in Georgia to launch SME financing and now continues a successful development as a banking institution.

Last year the leading Georgian bank TBC Bank became a majority shareholder of Bank Constanta. As a result, Bank Constanta became better positioned on the local market and continued faster expansion and development.

First Quarter of 2012 has been the most successful period for Bank Constanta. During this period the bank opened 9 new branches throughout Georgia. By the end of the year Bank Constanta’s 15 new branches will appear in the country.

The COMMERCIAL TIMES interviewed representatives from Bank Constanta regarding the above mentioned development news at the bank and other activities planned for future.

Melania Kuchukhidze, the Head of Bank Constanta’s Sales Department

-  How would you assess Bank Constanta’s performance in the first quarter of 2012?


- Bank Constanta showed the biggest growth in the first quarter of 2012 compared to the same period of the previous years.


- What impact did the growth financial indicators have on the bank’s credit portfolio?


- Bank Constanta’s credit portfolio increased by GEL 22 million during this period. The bank closed 2011 with GEL 118 indicator while in the first quarter of 2012 this figure has already reached GEL 140 million, which is 19% growth.

It’s an impressive performance for the first quarter as this period is in general less dynamic.  Agricultural season also becomes active a bit later and agro financing is of the top priorities for our bank. Even despite that, Bank Constanta’s credit portfolio has showed an impressive result in the first quarter of 2012.

- What major changes has Bank Constanta conducted in terms of sales?

- During this period Bank Constanta launched consumer lending, simplified service procedures, making them best flexible for clients and employees, especially when it comes to micro financing. On the other hand, efficiency of our experts is a significant focus for our bank and in this direction we’ve been putting a lot of effort and energy and the biggest feedback has been reflected in the latest financial report.

- As for attracting new clients, how efficiently have the first months of 2012 been for the bank?

- Increased number of clients is one of the most important factors in the bank’s first quarter, 2012 financial report. Around 5 000 new clienst were added to the bank’s client portfolio during this period (17% growth).

We’re committed to create maximum comfort for our clients and this has been our goal last quaarter while launching new banking products like comsumer lending, card overdraft, and internet banking. However, it doesn’t mean Constanta’s intending to turn into a retail bank and increase its market share in this direction. The only reason for lauchning products for retail market consumption is to fully meet the demand of our clinets. Neither we expect to significalty increase the bank’s income thorugh these products. Retail direction for Bank Constanta stands for cross sales and maximum comfort of clients. Bank Constanta remains focused on its own segment and saves no effort to be better positioned right where it stands.

In addition to credit direction, we’r working hard in terms of non-credit activities as well. Bank Constanta has rather ambitions plans in this regards.

I would say, we closed the first quarter of 2012 quite successfully as far as non-credit activities are concerned, both in sales and marketing direction. Though the result of this relatively new product is not that impressive as we have in respect to credit portfolio, we see growth everyday.

Lasha-Giorgi Gogua, Head of Bank Constanta’s Marketing Department

- What type of new products did Bank Constanta launch during the first quarter of 2012?

- New products released by Bank Constanta during the first quarter of the year included: internet banking, card overdraft and consumer loans.

- Why do you think these products could be important for Bank Constanta in the given time?

- In general, we try to provide a wide range of banking services within the segment we work in. Our clients are mainly micro and small manufacturers, located mostly in regions. It’s our task to let our clients feel comfortable while dealing with banking services, so we’re bringing our services close to their work locations. The number of products launched during the first quarter of 2012 makes only a small portion of what we intend to do till the end of the year.

- How would you evaluate current situation in Georgia’s banking sector and what niche does Bank Constanta occupy in the local market?

- Local banking market is divided into two parts: micro-financing and banking sectors. In the first part we see mainly microfinance organizations and several banks working and Bank Constanta is strongly positioned here. As for the banking sector, we’re making an effort to get better positioned in this part as well by coming up with new products and services

- Could you please highlight the top strategic steps made by Bank Constanta in the first quarter of 2012?

- According to the total first quarter, 2012 data, Bank Constanta has advanced from elevenths listing to tenth, which is good news for us indeed. During this period the bank showed a significant expansion; 9 new branches have been opened, 7 of them-in regions. In addition 15 new branches will be opened by the end of the year. In parallel to the geographical expansion we’re committed to maintain close relations between our brand and our clients, which is a rather complicated and long-term challenge. In order to create certain brand values it’s essential to make changes not only in products and sales strategy but within the entire corporate culture of the organization’s business model.

One of the major tools that help us in achieving this goal is a Consul institution-our representatives in regions, mediators promoting the bank’s products locally. These are the people who get the local population informed about Bank Constanta’s services.

In General, Bank Constanta’s main strategy for 2012 is a geographical diversification. New branches will have new consuls and this will the bank get positioned on new locations.

- Bank Constanta is actively engaged in promoting Georgian ethnographic culture. Why’s that important for the bank?

- Regional population is the main target segment for Bank Constanta. As I mentioned above, it’s important for us to be close to our clients in order to adapt our services to their interests and demands. That’s why we believe promoting ethnographic culture is a right decision. About a year and a half ago when we were just starting to work on this issue, we found that no other big organization was engaged actively in supporting ethnography and we did it. During last quarter we worked on promoting ethno culture cities where ethnography had gone out of fashion already and was almost forgotten. The feedback was amazing, outstandingly positive.

- Corporate social responsibility has become an important part for doing business in Georgia. How interesting could this issue be for Bank Constanta?


- Since Responsible Financing is an important part for Bank Constanta, we’re doing our best to be responsible before our clients in all directions. As a part of this strategy, the bank operates Service Monitoring and Consumer Rights Service in oreder to privide clients with high quality services possible. Client education and awareness is one of the main priorities for our bank.

As a part of the social responsibility strategy, top management of Bank Constanta received special trainings so that to get better educated on what social responsibility is about  and make it work within the organization.

In addition, we have worked out several new products, which will appear on the local market in close future. The main message spread with launching these new products is again providing our clients with a broader range of banking services.





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