Leading French lender BNP Paribas is stepping up the development of its retail banking arm networks in overseas emerging markets, with a focus on the Mediterranean basin and on Far-Eastern Europe.
With regard to its moves in the Mediterranean market, BNP Paribas’ initial objective of 200 retail outlets openings in 2005-2007 has been upwardly revised for the second time due to dynamism of the markets and the bank’s strong performance. Now 139 branches will be opened in 2006, while for 2007, over 130 openings are planned.
BNP Paribas says that growth will be particularly strong in Turkey. This network is set to increase from 113 branches in 2005 to 173 by the end of 2006, and to 233 by the end of 2007. Major development plans are also in the pipeline for Morocco and Tunisia, and in Egypt and Algeria, where the company’s establishment in retail banking is more recent.
Altogether, the Mediterranean basin and Gulf region should extend to 650 branches by the end of 2007.
In eastern Europe the acquisition of the majority of the capital of Ukrainian bank Ukrsibbank was finalized in the first half of 2006. Its network of 763 branches will be extended to 1,000 by the end of 2006, in over 100 towns and cities throughout the country.
In Russia, where BNP Paribas already has a significant base in corporate and investment banking, the group is also working on the launch of a retail banking activity.