Societe Generale Acquires major share of Banka Popullore

TIRANA, April.20-Societe Generale announces the acquisition of 75 percent of the capital of Albania’s Banka Popullore. The acquisition, signed on 18 April, is subject to the approval of the Albanian regulatory authorities. This acquisition is in line with the development strategy of Societe Generale as one of the major players in universal banking in South Eastern Europe, where it has subsidiaries in Serbia, Montenegro, Croatia and Slovenia. With almost 1 million clients and 238 branches, this region will become the third largest franchise in Europe ex-France for Societe Generale’s International Retail Banking division, after the Czech Republic (Komercni Banka) and Romania (BRD) Banka Popullore is a dynamic universal bank, founded in March 2004. Within 3 years, the bank created a significant network across Albania and attained a market share of 5 percent. Banka Popullore offers services and products to 42,000 customers through a 30 branch network, and employs 280 persons. Its total assets reached 230 million euro at end 2006. Societe Generale’s know-how, technology, and international network will enable Banka Popullore to pursue its development. The Albanian economy is performing well thanks to reforms launched a decade ago to open and liberalize its market economy. Since 2003, GDP growth has been around 6 percent p.a., while inflation is controlled at a low and stable rate around 3 percent. The country’s banking system achieved very good performance in 2005, notably in the development of loans and customer deposits , and enjoys strong prospects.