Bank Leumi (TASE: LUMI) is expanding the business of its subsidiary Leumi Romania SA. Sources inform ''Globes'' that Leumi Romania will open a branch in the Bulgarian capital, Sofia, during the first quarter of 2008.
Bulgaria and Romania joined the EU on January 1. Sources said that Bank Leumi decided to use Leumi Romania to expand into Bulgaria after deciding that it was not worthwhile acquiring a Bulgarian bank because of their high prices.
Bank Leumi senior VP and head of capital markets division Prof. Daniel Tsiddon is responsible for activity in Romania. He said in response that the bank decided to expand into Bulgaria because of the large Israeli business community in the country. “We believe in gathering the fledglings into the nest,” he said, adding that the Sofia branch would also provide banking services to the large Romanian business community in the country.
Tsiddon believes that the Bulgarian feasibility study would be completed within a couple of months at which point an application would be submitted to the authorities. “We’ll begin by opening one branch during the first quarter of 2008. We won’t rush forward unheedingly, but move in measured steps,” he said.
Published by Globes [online], Israel business news - www.globes.co.il - on August 22, 2007
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