During a press conference this morning prior to the Bank’s Annual General Meeting of the shareholders, the Chairman of Piraeus Bank, Michalis Sallas, stated that the fact of a possible uniform resolution regarding banks’ pension fund liabilities in combination with the application of the International Financial Reporting Standards (IFRS) may upgrade the Greek banking system and the economy as a whole.
He also claimed that the country’s potential is of great extent while he stated that the utilization of the main part of projects, companies and public sector investments together with the appropriate management of the public finance may all bring about the tackling of current problems and lead to the stable development of the country’s economy. Mr. Sallas underlined that “we in Piraeus Bank, have faith in the future and the development of the country. It is, thus, that we engage in investing by setting up new branches, infrastructure and aim to achieve faster growth rates in activities”.
Mr. Sallas also mentioned that 2005 is turning into another good year for the development of activities and the Bank’s profitability. This is also true of the whole banking sector, while he pointed out that there is potential for further growth through also the continuous investments of the Greek banks in the Balkans. He also added that Piraeus Bank aims at reinforcing its business activity in the area of South-Eastern Europe through new acquisitions and the expansion of its branch network, which currently accounts for 110 units in these countries.
The Chairman made special reference to the commencement of the business activities of the largest building block, situated in the center of Athens, the City Link (former Army Pension Fund Building-MTS). The Attica complex is to begin operating the day after tomorrow. He stated that this shopping mall constitutes a large project which is about to finish, and apart from the returns that is going to generate for the Group, it will alter the Athens’s commercial center and will contribute importantly in upgrading it.
At noon, the Annual General Meeting of shareholders of Piraeus Bank unanimously approved the Bank’s 2004 annual report and financial statements, and decided to proceed with the distribution of a dividend of € 0.40 per share, representing an increase of 33.3% compared to last year. This increase reflects the Bank’s profitability, a fact that was also evident by the rise of the share price of Piraeus Bank by 33.5%in ATHEX in 2004, in continuation of a respective increase of 62.9% in 2003. The dividend distribution will begin on May the 9th. As of tomorrow, the Bank’s shares will be traded ex-dividend in ATHEX.
During the General Meeting of shareholders, Mr Sallas referred extensively to the Group’s development and the achievement of goals which had been set for 2004, while he spoke of the prospects for 2005. More specifically, he stated the following regarding 2004:
- Net profits, after tax and minority interests, increased by 40.4%, reaching € 142.5 million which constitutes the best profitability performance record in the history of the Bank. The consolidated pre-tax profits amounted to € 217 million versus € 165 million in 2003, having increased by 31.5%.
- The Group was involved in a number of strategic moves, such as the broadening of its presence in the Balkan markets. This was achieved by means of agreeing to buy two small but dynamic banks; Eurobank in Bulgaria and Atlas Bank in Serbia. Moreover, Marathon Bank in New York merged through absorption with Interbank N.Y., while Sigma Securities merged with Devletoglou Securities.
- In 2004, Piraeus Bank Group achieved significant growth in all its main figures. Its assets amounted to € 16,591 million, an increase of 12.6%. Customer deposits excluding repos increased by 16.5% and gross loans amounted to € 12,685 million, presenting an increase of 18.8%
- This development resulted in the enhancement of Piraeus Bank’s share in the domestic commercial banking market to 11%, as opposed to 10.3% a year ago.
- Moreover, the international rating agencies Μoody’s and Standard & Poor’s upgraded the Bank's long-term credit rating to Baa1 and the Bank’s outlook to positive, accordingly, reflecting Piraeus Bank's improved position in the market and its successful growth strategy.
- During last year, the Bank’s branch network increased in the domestic market by 28 units (20 of which in the greater Athens area), while another 24 were opened in the Balkans.
Referring to the planning for the next three years, Mr Sallas underlined that the Bank’s growth rates in terms of activities and profitability are to remain high. He stated that the target for the current year is net profits after tax and minorities to exceed € 170 million. Regarding retail banking and mortgage lending, segments of particular interest for Piraeus Bank, are expected to expand faster than the previous year.
The domestic branch network will be further expanded, since another 15 to 20 branches are to be opened, especially in the Attica Prefecture, while another 20 branches are to be added in the Balkans, regardless of any potential acquisitions. In electronic banking, Winbank will continue to invest in operation and security systems. The range of products and services will be constantly improved with the aim to maintain the Winbank’s innovativeness, pioneering and top position in the Greek market.
As regards participations, Mr. Sallas also stated that the group is gradually proceeding to the reduction of its position in the non-financial sector companies. The aim of this is the reduction of costs, a boost in the core activities and an improvement of the return on the invested capital. Today, the Boards of Directors of Piraeus Bank and the Hellenic Investment company are going to meet, in order to decide the absorption of the latter by the first.
Furthermore, Mr Sallas stressed that the group’s main aim is the containment of the operating cost, with a decline of cost to income ratio below 53% and the improvement of the return on equity over 20%. The common objective of all of the actions undertaken is the further growth of the Group and the creation of additional value for the Bank’s shareholders, maintaining the very good course of results achieved in 2004.
In answering to journalists’ questions, Michalis Sallas stated the following:
- He did not exclude the possibility of M&A activities taking place in the domestic banking sector market in 2005 or the possibility of preparing for such activities in 2006.
- Referring to households, he stressed that they must not engage in excessive lending resulting from their possible immediate but not always necessary needs, so that the future of their families will not be undermined.
| Relative news: | ||
|