As a very recent entrant to the Maltese market, Banif Bank (Malta) identified Malta as an opportunity given the fact that the Maltese banking sector presented an interesting business proposition for market growth potential, particularly following Malta’s accession into the EU and its subsequent entry into the Eurozone.

Given its competitive structure and banking penetration levels, there also seemed to exist room for additional players to enter the market and bring new customer value propositions in line with the future challenges and needs of Maltese companies and individuals.

Banif Bank (Malta) plc was incorporated on the 27th March 2007, initially as a fully-owned subsidiary of Banif SGPS, SA. In 2008, a number of local investors were invited to participate in the ownership of the company and were offered a subscription of 28 percent of the issued share capital.

Banif Bank’s success and rapid growth in such a brief period of time has surprised everyone, including the shareholders. Its rapid growth is particularly surprising in light of the fact that it was the first time in Banif Group’s history that a bank was set up and developed from scratch. In fact, Banif’s rapid international expansion in 17 countries worldwide was mainly attributed to mergers and acquisitions.

Strategy
Banif Bank (Malta) plc are adopting a differentiation strategy based upon high quality service standards; an innovative product portfolio; and advanced banking technology oriented towards efficiency gains. 

The bank’s initial priority has been to create a strong business structure based on solid internal processes. The next step was to focus on new customer acquisition and cross-selling, which led to network expansion and increased market share gains. This enabled the bank to consolidate itself and focus on improving the financial wellbeing of its loyal customers.

During the second year of operations in Malta, the bank experienced steady growth both in terms of its lending and deposit portfolios, and the resultant operating income. Heavy investment in the bank’s infrastructure in terms of the branch network and back office functional capabilities was also undertaken.

The past year proved to be challenging due to the financial crisis and global recession, which presented an added hurdle that the bank had to overcome. However, being part of an international group with good standing, the bank can rely on the full support of its parent company and is well positioned to navigate through difficult times. Despite the current economic scenario, the bank is still committed to execute the penetration and growth strategies outlined in its business plan.

Geographic spread
The bank continued expanding its infrastructure in line with the execution of its vision of achieving the set strategic objectives. Banif Malta continued to invest in its branch network and human resources to increase its business generation capability. This was complemented with significant investment in the supporting infrastructure both in terms of the service proposition as well as the enhanced service functionalities.

In just over two years the Bank has built a network around Malta and Gozo to provide a full range of commercial banking services to both residents and non-residents. This required a significant enhancement of the technical infrastructure together with an increased human resource complement both at front office and back-office levels. This was required in order to guarantee a high quality level of service coupled with exponential growth.

Results
During the past two years the bank reached important milestones with the launch of its personal credit cards, debit cards and internet banking portal. In line with its strategy, the bank also launched a number of innovative and very competitive deposit and lending products with the aim of increasing its market share.

To date, the bank has estimated to have already achieved a quarter of the target market share outlined in its original 5-year business plan. This has been made possible by establishing business relationships with various clients from different segments of the local market. As at 31st December 2009, the Bank’s deposit portfolio grew by 400 percent compared to the same period of 2008, whereas the lending portfolio increased by approximately 300 percent over the same period.

Future outlook
2010 will be characterised by further growth through the bank’s commitment in expanding its branch network and its corporate business. This expansion will be enabled by strengthening the supporting functions in order to meet the increased business demands. This will also be complemented by investment in IT infrastructure with a view to providing customers with a comprehensive and differentiated product offer.

The bank will also further its investment in what it considers core to the banking operations, the human resource base. This will be enabled through the recruitment of high quality, skilled and experienced persons together with ongoing development of the existent workforce.

Banif Bank will pursue a set of strategic initiatives that will shape it as a top performer in the Maltese banking sector. Banif will develop a broad offering which will be customised according to the needs of each target segment. The bank will also consider establishing partnerships with local and foreign providers in order to enrich its customer product and service offering. Banif Malta believes it can bring further banking product and service innovations to the Maltese market and will continue seeking to identify new market opportunities. Banif acknowledges that creating and sustaining competitive advantage in today’s market is mandatory for companies to remain successful and increase shareholder value.

In merely two years, Banif managed to exceed all its expectations by establishing itself as an alternative provider of banking solutions in the local market. It is of greater significance that the Bank has managed to do so notwithstanding the financial crisis and economic instability that surrounded the financial markets worldwide. Regardless that Banif has already left its mark on the local market there is still opportunity for improvement and ample work to be done in order to be able to provide high quality and innovative banking solutions focused on its clients’ needs. As stated by its credo – The Power of Believing, Banif believes that it can surpass all its goals and reaffirm itself as the Alternative Maltese Bank.