Bank Leumi (TASE: LUMI) has opened a branch in the Bulgarian capital of Sofia through Bank Leumi Romania SA. "Globes" first revealed Bank Leumi's plan to expand the activity of Bank Leumi Romania, which will serve as the anchor for business in central Europe.
Bulgaria and Romania joined the EU on January 1, 2007, and both countries have a very active Israeli business community. The Sofia branch will mainly serve business customers, including the financing of real estate projects and providing services to Israeli customers operating in the country.
Bank Leumi's strategy calls for expanding its international business. Its target is for a third of its assets to come from abroad within a few years. However, in contrast to Bank Hapoalim (TASE: POLI; LSE:80OA), Bank Leumi does not make large acquisitions. Since cancelling a plan to acquire a Georgian Bank, it concentrates on building existing activity.
A senior Bank Leumi official said, "Bank Leumi has a clear international strategy as far as expanding its foreign business is concerned. We only want to expand in those areas where we already have business and to realize the synergy in terms of size and diversity."
Bank Leumi Romania has 36 branches and 500 employees.
Published by Globes [online], Israel business news - www.globes-online.com - on September 22, 2008
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