The FINANCIAL — “At the moment we are the most active bank in financing micro business that operates in the regions of Georgia. Of course we will try to keep this up in 2012 as well,” Levan Lebanidze, the General Director of Bank Constanta, told The FINANCIAL.
The Bank is going to add another 15 branches in different regions of Georgia and maintain its activity in the regions.
Q. 2011 was a successful year for Bank Constanta. How do you plan to continue?
A. Significant contribution to the country’s financial sector for economic development; caring about raising the living standard; reasonable funding for the lower income segments of society; to provide affordable financial services for society; and to improve and develop credit service are the main components of this plan.
Throughout 2011 Bank Constanta witnessed 77% growth in its assets and 71% growth in its credit portfolio. The amount of loans issued by Bank Constanta in 2011 exceeded 168 million GEL, an 89% increase compared to the same parameter of the previous year.
Q. What about the financial conditions of Constanta in 2011?
A. The Bank has grown financially, disbursing more than 52 million GEL. In 2011 total assets amounted to 151,132,17 GEL, total liabilities and equity capital – 151,132,17 GEL, total interest income – 26,489,85 GEL, total interest expense – 8,221,40 GEL, net interest income – 18,268,45 GEL, and total non-interest income – 3,507,86 GEL.
Q. How many clients does the Bank have?
A. The number of Bank Constanta clients has grown by about 23 percent, reaching about 28,000 clients.
Q. Which new products has Bank Constanta offered its customers?
A. We offered many new products and services to our customers in the last year out of which I would single out consumer loans and micro savings. The Bank has introduced a new deposit system. The Bank offered its customers the highest deposit interests in the banking sector which is 17 percent. The Bank has also attracted 456 percent more deposits than it expected.
We’re working on various new products as well as revamping the older ones at our bank. As our main focus is micro-credits we want to be a prime solution for businesses which are in need of money.
In a month’s time we’ll have plastic cards for our clients which will be of high quality and with great functionality. There are already many ATM stations in each of our branches. So any cardholder of our bank can take out money.
Bank Constanta introduced new banking products in 2011 such as consumer deposits, the portfolio of which had reached 14 million GEL as of the end of 2011. On top of that Bank Constanta introduced a plastic cards system, equipping its outlets with ATMs.
Q. So far how successful has your cooperation with TBC Bank proven to be?
A. I can say that it is very successful cooperation. TBC became a new shareholder of Bank Constanta, and all systems on which we have been working for years showed positive results in 2011. TBC Bank is a very reliable and strong partner for us. The Bank is taking a stronghold of the Georgian financial market by adjoining TBC Bank as its 83% shareholder. TBC Bank has supported Constanta’s rapid growth.
Our financial capabilities have grown drastically as well as having other technical support from TBC Bank. It gives us the ambition to better serve people willing to take out micro-credits.
TBC Bank is 83% shareholder at Bank Constanta. Besides TBC Bank, OikoCredit has 11% of the shares whilst 7% is owned by individual persons.
Q. Some experts say that the reason why you decided to cooperate with TBC Bank was due to problems that you had. How would you explain the reason for your cooperation?
A. I would not say that we had some problems. Of course transforming from micro financing organization to bank was not easy for Constanta. The market increase and key financial indicators were not as high as today, but this happened because the transformation needed time.
It was not only a unilateral decision of Constanta. This cooperation was profitable for TBC Bank as well. Our strategy is linked to TBC Bank’s interest to operate in the regions as well.
Q. Constanta as a micro financing organization was a leader on the market. How would you assess the position of Constanta as a bank?
A. Constanta is a very strong bank and is as successful nowadays as it was as a financing organization. Constanta got into the ten most successful banks list of 2011.
Constanta was the first micro finance organization and has been working in Georgia since 1997. None of the companies have the same profile as us.
Q. What is the strategy and future plan of Bank Constanta?
A. We have 30 branches at present. 9 of them are new and were opened in the first quarter of 2012. We plan to open 15 more branches in the regions of Georgia in 2012. We will try to expand our branches and reach all areas where there is demand for micro loans but the service is not yet offered.
The bank is going to intensify in the agro direction. The agriculture sector is very important for us and we regularly increase crediting to the segment. We see that demand is increasing from customers.
Our goal is to get closer to our customers and offer them a wide range of financial services.
The strategy and future plans of the Bank are based on our customers’ needs first of all. According to the company’s main goal, its service should be affordable for those customers who cannot use credit service. We choose such regions where financial institutions are not available for customers. Also, we go where the shortage has not already been filled; where there is demand which is not supplied.
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