Bancherul - BANCI / ENGLISH / How a French banker saved a Greek bank in Romania

He is a biker and likes to interact with people, learn new cultures and discover new countries. It has an impressive career of over 30 years in banking, along which he changed his residence for 17 times in 7 countries. We introduce you Pierre Martin, CEO of Credit Agricole Romania, part of the second largest French banking group. He has been for three years at the helm of Romanian subsidiary, which he managed to recover from the difficult situation it got in 2008 after the crisis burst. In fact, he received applause from the crowd of coleages this year when the news came that the French group will take over from Greek bank Emporiki in Romania, in order to come to profit next year and to develop its business when the economy will allow it. Find out more details in this interview with Pierre Martin.

- You worked most of your life in the banking sector. Were you born to be a banker? How did you become a banker?

- I do not think I was born to be a banker, it was simply a chance of life. After graduation, I was, for one year, a science teacher, I taught sports and music. But this was not my vocation, so during a summer holiday I received a proposal from my father to try to do something in my spare time. So I applied for a job at Credit Agricole, I entered the bank, initially with the intention of staying a bit to learn and see what it is about, but after 30 years I'm still here.

- Without interruption?

- No, although sometimes it is natural to change something, to do something new. But I could do that within Credit Agricole, which is a large group and offered me many opportunities for change: to change position, the city and the country of work. Even if I am a loyal banker for my first and only employer, I had many opportunities to change. Romania is the 6th country in which I have worked, after France, of course, Italy, Lebanon, Egypt, Morocco. In addition, as Credit Agricole is a training oriented company, during my time spent in the bank I had the opportunity to specialize in various financial areas such as corporate, insurance, retail network.

- At what level did you entered the bank?

- At Credit Agricole, everyone starts at the first level, so I began as a relationship manager, then branch manager and area manager. The company policy is to focuses more on experience and less on diplomas. All people in the top management of the group began their career in a branch. Even the CEO of Credit Agricole Group started at the lowest level. Subsequently, depending on the level of expertise and skills acquired, you can remain in a position several weeks, several months or years before being promoted.

- How fast have you been?

- After nearly a year and a half I have advanced to the position of branch manager. In fact, I had a rapid career evolution as it was a time when the bamk was expanding rapidly and opened units everywhere so many had the chance to prove their talent. Initially, the bank had 2,000 units and now stands at 10,000. It was a period of expansion so the bank needed young people willing to move wherever the bank will need them.

- So one of your skills is mobility ...

- Yes, adaptability, exactly, because I traveled to many cities in France. I'm from the south-east, Lyon, but I worked in 8-9 departments (counties) across the country. So I made proof of geographic mobility, but also of professional mobility, because I worked and accumulated experience in several areas, such as corporate, insurance, retail network. So far I have moved at least 17 times.

- How long did you take to get into an executive position?

- After 15 years of experience in France, the first time I went out in Italy in, 1989, in an executive position. I stayed there four years, and then I returned to France to lead the international corporate division. Later I went to Lebanon to create a retail network. I have 15 years of experience in senior management, mostly in the commercial department, because I love working with people.

- How did you decide to come to Romania?

- In 2009, the local bank situation, Emporiki Bank at that time, was very difficult: we had big losses and the relationship with NBR was quite complicated because we had no enough tools to handle the situation. The bank belonged to the Greek Emporiki group and the management reported in Athens, that is why we decided to take the Credit Agricole bank management, even if the bank shareholder remained Emporiki, in order to solve the problem of losses accumulated in 2007-2009 period. I was in Paris at the time, with the mission to implement a new organizational model across all foreign subsidiaries of Credit Agricole. So I and my team came here with the mission of making a bank diagnosis and see how we can remedy the situation of the bank, how can we respond to the request of NBR, how to implement IT systems in the Credit Agricole group. Finally, I decided to send to my boss a recovery plan, which was approved, and then I was asked to be the one to implement it. So we arrived in Bucharest, in September 2009.

We'll reach the break-even in 2013 and then we'll see what we'll de further

- Why did you decide to propose a restructuring plan and not to close the bank?

- Firstly, because of the potential of the country. In 2009, the crisis just settled in Romania, and the first thing that my team has detected was the country potential: firstly, it is a large agricultural country, and we are the Credit Agricole. Then, of all the countries I've met, Romania looks most like France. In terms of economic potential, it is also interesting. In addition, the group has 6,000 customers French companies, and over 20,000 Italian companies present in Romania, so it was exciting for us to have a bank in Romania to serve at least our clients group companies from France, Italy and Greece, present in Romania. However, at that time, we did not think the crisis would take so long, anyway we decided to dedicate at least two years to revive the bank, not only financially but also technically. More specifically, to develop a financial and technical platform, so as to be ready for the time when the crisis is over. For now, the situation is still on standby, I do not know if it is time for investment, development, since the crisis is not over. Now we build this platform, we continue to invest in two directions: technical and human resources, in order to to qualify our staff in the group culture. We will reach break-even in 2013 and then we'll see what will happen, if we'll need a development plan.

- Do you think the crisis will end in 2013?

- I don't know when the crisis will end, but as far as we are concerned, the situation is more clear as before: we have a good organization, a good relationship with NBR, we almost covered the losses or we will cover them in 2013, so we have time to decide, we are not pressed. If the economic situation will improve, which I hope, we will reach a decision, but for now we are still expecting.
We have a strategy focused on corporate clients who are part of the Credit Agricole group, that large multinational companies operating in Romania, we also have very good customers of Romanian SMEs and we focus on these. Also, through salary packages for employees of these companies, we are developing retail banking services to individuals, with loans likde the First House Programe and other products. We follow a prudent business development. In terms of capital and liquidity we can self sustain, so that we can conduct a profitable business. Cutting costs was also one of the main objectives of the new strategy, along with prudent risk management, development and investments in IT and training for employees.

- When the crisis is over, the bank will remain in the actual form or it will grow?

- I do not know at this time, especially that in Romania there are plenty of banks, 41, many small banks, like us, with a market share of 0.5%. But I think in these difficult times it is more convenient to be a small player, because we have agility, adaptability, so that we can refocus our strategy when the environment changes. For now, we have achieved the objectives set in three years ago and now we waite for better times. I do not think the crisis will be resolved anytime soon in Romania, because the economy is too dependent on Western and foreign investments, also the banking sector is 80% owned by foreign banks, which is a real handicap for the country .

- The banks with Romanian capital should have a greater role ...

- There are strong Romanian banks, like CEC Bank, Banca Transilvania, Carpatica, which are not doing bad, but all shareholders of foreign banks require foreign subsidiaries the same things: do not ask us further capital increases and more liquidity.

- Is it difficult or easy to work with Romanian employees?

- It is not difficult. Even if it is the most difficult period that I have ever been in terms of management, one of the first things I noticed after I came to Romania was the quality of human resources, which is a really good assset of the country. Bank management would be much easier if it were better times, but it's nice to work with the Romanians. The only thing that I could say is that the country is a little affected by bureaucracy. Therefore, I always ask to simplify things as much as we can, there are too many procedures to follow. It is probably a matter of the country's history, as in other countries such as Morocco, things are totally different. They have no procedures, are very business oriented and bargain, it's totally different. My rich experience in different countries gives me a chance to compare cultures and people's behavior, so I think for a Frenchman in Romania is clearly easier than in Muslim countries. Except for the language, we are like at home in Romania. But the lesson that I learned is that you have to adapt to the environment in order to succeed.

- It is difficult for a Frenchman to learn Romanian?

- It's not easy, but neither is it necessary, because almost all Romanians speak French or English, so than we can not practice Romanian :)

This is our life: we move every 3-4 years

- Tell us something about yourself. What you like, what you do not like?

- I am a biker, I like to play golf, I'm a family man, I have 4 children and 6 grandchildren. In terms of career, I think that in order to be successful in the position of the manager of a bank, or any other service company, you have to understand, when you accept this job, that your mission is to serve people. So to be successful you have to like people. Otherwise I have no special wishes, I love the life as it is. I believe that the experiences I had in different cities and countries is very rich for me, albeit difficult, because you have to accept to leave your home country, to stay away from family, not to see your children too often. But this is our life, we move every 3-4 years and must face life every time, you have to take it from the beginning. The longest I stayed in Lebanon, four years and a half. When I came to Romania three years ago, I had to actually build a new life, because here I had no friend, no acquaintances. At the same time, it is a new experience, a rich one, but it is very difficult, so you must also have the right wife by you to do this :) Because I'm busy all day at work, but for a wife it is more difficult to fill her free time.

- What kind of friends have you made in Romania?

- Bikers, golfers, I had many opportunities to meet many people, many customers, we have a lot of French friends from Canada, Italy, Romania, France, Greece. So we have a lot of friends, and life in Bucharest is beautiful.

- Isn't dangerous to ride a bike?

- We have established a club with French friends, consisting of 20-30 people. Isn't dangerous o Romanian roads. The bike is dangerous everywhere, but I'm used to accidents because I am a biker for 40 years ... I visited by bike countries like Lebanon, Syria, Jordan, Egypt, Morocco.
When I was young I rode a motocross, I participated in competitions. All my children have also their bikes, I teached them how to drive safely. Now I have a big bike in France, a Harley, but here I rented one. Of course now I like the big ones, the 1400 cc are ok for me, but not to ride fast, rather because they are better suited to my age:)

Huge image deficit among strangers

- How long do you want to stay in Romania?

- At least one year to complete the mandate. I achieved the short-term goals, and now we expect better times. Even if the environment is not very favorable, and we still have to take tough decisions, 2013 will be more easy for our bank, whatever happens. First, it is easier to be a French bank than a Greek one, as we were before, it was very dificult to have a Greek brand. Now we are training our employees and have the tools and the support of the group. Being in small player position, we managed to develop our portfolio, we are not a market maker, but we have a steady business increase that is enough for now, for what we intend to do. Naturally we also cut the costs, all companies are in the same situation.

- Is there a special moment that you have lived in Romania?

- From a professional perspective, it was when I received the message from our shareholders that they will buy the shares of Emporiki Romania. I was during a meeting with my colleagues when I received an SMS with the decision, it was the best news we could get. It was the first time I received applause from the crowd.

- You had a big contribution to this decision ...

- Of course, as the general manager of the bank ... But what I would like to mention about Romania is that we find everey time a surprising reaction of those who come for the first time in Romania: French and other foreigners, starting with our children, then friends and colleagues that we invited to come here. All those who come for the first time here are puzzled to see what they see, because the image of Romania abroad, especially in France, is very poor. The image deficit of the country is huge. In all countries, the image they have about Romania is not correct. So it is a great satisfaction for us that we can change anything about it. Especially since, at least in Bucharest, there is a pleasant life, a rich cultural life with opera, cinema, music. People are polite and friendly, well educated, which is really a surprise for visitors. Therefore, we should all change this image deficit.

Bank is not an institution, rather a service company

- What do you advise young people who want to pursue a career in banking?

- They should consider that the main feature of this job is not the bank but customer service. Many young people are considering a bank as an institution, not a services company. Actually we are basically a services company, and if we do not have customers, we do not exist anymore.

- And how would this translate into practice?

- I think everyone, regardless of the position, we need to focus on the relationship with our customer. For example, the marketing manager must promote a fair bank offer, those who aprove loans should explain the customers how to invest the money, the people in front office should welcome customers as if they were at home. Relationship is essential, customers servicing is our main objective.

- Do you think that now, after the outbreak of the crisis, the banker profession has changed, especially in terms of a banker specializing in the commercial side, and sales of banking products like you are?

- I think the banking system in general has turned to a simpler model, because we had the experience of those toxic structured products and other risky products. Banks are now back to a client-oriented model, to the relationship that a customer wants from a bank. This is, actually, a feature of Credit Agricole, clearly we are a customer-oriented bank, our mission is to serve clients with the best offer, the best advice and the best relationship. So I do not think that much has changed for us, who are in the commercial bank, not in investment banking. So I think that after the crisis is more difficult for investment banks, but as commercial banks I think we're more focused on customer needs. We can say that this is our obsession in Romania and is a main characteristic of Credit Agricole culture. Specifically, in recent years we did everything we could to help customers cross the crisis, both individuals and SMEs, adopting a role of a partner rather as a credit supplier, and I think we have been successful in this respect.

- Given NBR regulations, do you think the banks can help effectively their customers during this difficult time, or they would need new tools to do that?

- I think that the banking rules are, of course, very strict in these times, but we have now a very good relationship with NBR. We were a little beyond their expectations 4 years ago (in 2008 and 2009) but now we have implemented all the requirements of the Central Bank, in accordance with European standards. Naturally we have enough resources to provide customers everything they need and I think we have the full support of the NBR for it.