Garanti Bank and Garanti Mortgage, initiate official merger procedures


Garanti Bank and Garanti Mortgage (Domenia Credit IFN SA) announce yesterday that they have initiated formal procedures for the merger of the two companies in Romania, which is expected to be finalized by the end of this year, following National Bank of Romania (BNR) approval and completion of all legal requirements.
“Our decision to merge the two companies is part of our long-term local strategy aimed to create a simplified business model, so we can serve better Garanti Group’s clients in the mortgage segment, from a single point, by the retail department within the bank” said Ufuk Tandogan, Garanti Group’s CEO, according to a press release.
This merger does not influence in any way the lending conditions for all those that have loans with Garanti Mortgage. The customers will be notified upon the transfer to Garanti Bank, according to the legislation in place.
In 2013, Garanti Mortgage registered net revenues of EUR 3.1 million and a profit of 0.6 million euros. There are around 3,400 clients and the average value of a Garanti Mortgage loan is around EUR 30,000.
Garanti Group consists of Garanti Bank, Garanti Leasing (the brand under which Motoractive IFN SA operates), Garanti Consumer Finance (the brand under which Ralfi IFN SA operates) and Garanti Mortgage (the brand under which Domenia Credit IFN SA operates).

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