US-owned Romanian lender First Bank will close 40 branches and fire some 379 people, the bank's president Dominic Bruynseels announced on March 4.

First Bank, the former Piraeus Bank, which was acquired by J.C. Flowers, an investment fund controlled by U.S. billionaire J. Christopher Flowers, officially launched its new brand on the banking market in Romania last November.

In an internal message consulted by G4Media.ro, Bruynseels tells employees that the measures were taken because of the "unpredictable operating environment that causes us to reorganize our business model to ensure a sustainable future." The managing board endorsed the step, he added.

At the same time, the bank will invest EUR 7.5 million in technology, as part of the same plan to streamline its activity, Bruynseels stated, according to Ziarul Financiar.

J.C. Flowers was saying in November that it was planning to acquire other banks in Romania, one of the targets being NBG’s subsidiary Banca Romaneasca.

editor@romania-insider.com

(Photo source: Facebook/First Bank)