Banif Bank (Malta) plc achieved profitability in the last quarter of 2011, a significant milestone for the bank which has just entered into its fifth year of operations, chief executive officer Joaquim F. Silva Pinto told The Times Business.

I will be very happy the day the bank appoints a Maltese chief executive

The news was communicated to the bank’s executives at the fourth annual managers’ meeting a few days ago.

Mr Silva Pinto said Banif will continue to consolidate its presence in the local market this year, before embarking on a network expansion programme that will add six branches to the current nine. Three will open next January and the remainder in 2014. The new branches will include one in Valletta.

Banif Bank (Malta) plc is a joint venture between Portugal’s Banif Financial Group and a group of local investors who hold a 28 per cent stake.

It opened its doors in January 2008 following the realisation of an “intensive and ambitious” project overseen by an initial team of five. Mr Silva Pinto said the road map evolved into a fully fledged Maltese bank thanks to the largely local team which developed in those few months.

“We faced several challenges at the time, not least making the leap from business plan to physical bank,” Mr Silva Pinto recalled. “After the bank established its first physical presence, we studied how Banif was perceived by the local community. We had introduced some changes in banking methods to Malta. We were very satisfied with the response – it meant the market clearly sought options.

“Internally, we were practical. We knew exactly what we wanted to achieve and the culture we sought to instil. The shareholders and the investors obviously wanted a return on their investment at a certain moment in time. That objective has now also been reached as Banif begins to return profits.”

Until 2011, Banif saw rapid growth, extending its presence to nine carefully selected locations within the community, launching a string of innovative retail products, and partnering major charity and social responsibility initiatives.

Mr Silva Pinto acknowledged the inroads Banif made brought not only results but added responsibilities – Banif is now no longer in project phase but a solid reality and a significant player on the local banking circuit braced for further growth.

“Banif will grow according to the market’s requirements and expectations, not by imposing a proposition on customers. We feel the market wants Banif to be even more present. From next year, we will take Banif where our customers have indicated they would like to see the bank, and I do not exclude further growth beyond that as well.”

Mr Silva Pinto admitted the present economic realities were not conducive to reaching the originally planned growth and investment levels, and he hoped the recessionary impact would not be harsh.

Some local sectors were feeling the pinch – business volumes had reduced and the commercial community was experiencing longer lead times and decision-making processes.

Banif’s growth in Malta had been designed to be effective and efficient – branches were manned by small but flexible teams of five or six, complemented by an online platform rolled out soon after the bank’s launch. The installation of ATMs for customer use only across the branch network has started; automated services will soon be extended to non-Banif customers, complemented by the installation of standalone ATMs in key locations.

Mr Silva Pinto said Banif’s retail, business and corporate offering and some private banking services were well received by the local community, particularly mortgage products which were designed specifically for the Maltese market.

“Although we have a home grown bank in Portugal, we operate in accordance with the local culture wherever we are, whether it is in Brazil, in Cape Verde or in the Azores,” Mr Silva Pinto explained.

“The same rationale was applied to Malta. It is the only way a bank of Banif’s size – neither very large nor very small – is able to position itself and be competitive.

“Our offering encompasses every aspect expected of a true banking relationship. We provide service banking and support with connections outside Malta. Winning new customers from the business community is a challenge.

“We have committees, teams, and business relationship managers all prepared to secure a commitment with every business model present in the local market. It is also about setting the highest standard of service level possible and setting pricing that is advantageous.”

The chief executive said establishing a bank in Malta had been a veritable learning curve and the local market continued to surprise him. The Maltese’s constant appetite for new opportunities and banking products was displayed by all sectors of society and by diverse age groups.

Its next steps, he added, depended only on market opportunities, now that its capacity for growth had been proven.

Banif, he added, will seek to diversify at the opportune moment. The bank was in the process of seeking a licence to enable it to offer investment services.

Meanwhile, its aspirations to list on the Malta Stock Exchange were part of the medium-term plans.

The long term, Mr Silva Pinto continued, involved far wider plans.

“Malta is not a finished project,” he explained. “The reason for a group like ours to be in Malta is to make Malta the centre of something.”

Mr Silva Pinto was reluctant to give further details as he alluded to the bank seeking new opportunities in the region.

He only indicated that the Maltese team, supported by figures from the group who had brought specific knowledge in several areas, had even more to contribute.

“I will be very happy the day the bank appoints a Maltese chief executive,” he said.