HSBC launches “Florence” project to find buyer for top 10 bank in Romania

London-based investment bank HSBC has launched on the market the intention of finding a buyer for Bancpost, a top 10 bank in Romania, one of the most valuable banking assets put up for sale on the local market. According to sources in the banking sector, the project has the code name "Florance," reports local Ziarul Financiar. EuroBank, the main stakeholder in Bancpost, wants to sell the banking, consumer credit, and leasing operations. Bancpost ranked 9th in Romania at the end of 2015 with a market share of 3%, down compared to 2014. EuroBank is pressured by Greece's international creditors to sell its subsidiaries outside Greece. Bancpost was built after 1990 on the structure of the Romanian postal operator. It was privatized at the end of the ‘90s, when it was acquired by EuroBank and GE Capital, the investment arm of US group General Electric. EuroBank later increased its stake by buying the shares of General Electric and those owned by the local investment funds SIFs. The financial crisis that started in 2008, coupled with the Greek crisis that began in 2010, affected Bancpost’s operations. The bank had to mark the bad loans and the Greek parent bank had to come up with additional capital to cover the losses. The main asset of Bancpost are the household deposits, given that the lender has extremely loyal customers. editor@romania-insider.com