Banks: What are they on the lookout for overseas? – 2024-07-07 11:51:55

Greek banks are as soon as once more on observe to develop their actions outdoors of Greece. After cleansing up their stability sheets from non-performing loans, considerably strengthening their capital place and returning to excessive profitability, they once more see alternatives to develop their operations overseas.

On this context, their managements have their eyes open for alternatives that will current themselves, significant for his or her shareholders.

After all, the occasions of their omnipotence within the 2000s within the wider space of ​​Southeast Europe and the Mediterranean, the place they managed virtually 1/3 of the property of the native markets, appear to have handed irretrievably. The chapter of the Greek State and the transformation applications they had been compelled to implement, as a result of state help they obtained, led to an unprecedented wave of disinvestment from many of the nations during which they’d a presence. It’s attribute that earlier than the outbreak of the debt disaster in 2010, their offshore property had reached as much as 90 billion euros. In the present day it doesn’t exceed 35 billion euros.

The brand new agenda

Nevertheless, now the expansion overseas is again on their agenda for good, because the dimension of the Greek market doesn’t appear enough within the medium time period to keep up the earnings on the multi-year highs of the final two years and the profitability indicators at passable ranges for the European given ranges. Due to this fact, having surplus funds and with open entry to the capital markets, it’s potential that they may take new initiatives on this route within the close to future.

Eurobank: Undoubtedly, Eurobank has thus far performed a number one position on this venture. Its CEO’s aim, Phocian Caribbean, throughout the subsequent two years 40% of the group’s web earnings will come from overseas. After the sale of its subsidiary in Serbia, it has centered on rising its dimension within the Bulgarian and Cypriot economies, each by natural progress and acquisitions.

On this route, the financial institution acquired 55% of Hellenic Financial institution of Cyprus and within the second yr, after the completion of the obligatory public supply for all its shares, its merger will likely be tried. On the similar time, Cyprus would be the car for the event of Eurobank’s actions within the Center East, primarily within the area of funding administration. Because of this, the opening of consultant workplaces in varied nations of the area has been launched.

Alpha Financial institution: Alpha Financial institution additionally has plans for brand new acquisitions overseas, following the strategic settlement with the Italian group UniCredit, which included, amongst different issues, the merger of their subsidiaries in Romania. Its CEO, Vassilis Psaltis, in a latest go to to Milan revealed that the 2 banks are contemplating the joint enlargement of their actions within the native market. Particularly, in a joint interview along with his Italian counterpart Andrea Orcell, famous that the cooperation between the 2 sides is creating positively and “could possibly be prolonged past the distribution contract they’d initially deliberate. After creating the third largest financial institution in Romania, the 2 corporations may go collectively for one more acquisition within the nation.”

Moreover, Alpha Financial institution additionally operates a subsidiary in Cyprus, which it would additionally attempt to strengthen, profiting from its cooperation with UniCredit. Its purpose is to develop the operations of Alpha Financial institution Cyprus within the areas of enterprise banking and bancassurance.

Nationwide Financial institution: For his half, the CEO of Nationwide Financial institution, Pavlos Mylonas, has repeatedly emphasised in his public statements that any enlargement strikes outdoors of Greece is not going to embody the traditional technique of acquisitions. In line with him, the axis of the group’s strategic improvement is the participation in syndicated bond issuances in Europe, but in addition within the share capital of corporations from the broader expertise sector. It’s famous that NBG at the moment maintains subsidiaries in North Macedonia and Cyprus, whose participation in its web profitability doesn’t exceed 5%.

Piraeus Financial institution: Piraeus Financial institution can be on the lookout for progress alternatives overseas, in accordance with its CEO. Christos Megalou. As he said in a latest presentation of the group’s new company identification, the financial institution has the funds to proceed with an enlargement transfer. Nevertheless, he added that it ought to make sense for its shareholders. In line with him, at this stage the precedence is the rise in dimension in Greece, but in addition the launch of a brand new autonomous digital financial institution throughout the yr. The explanation for Snappi, which will likely be addressed within the first part to the Greek market.

Within the second yr, by the pan-European license it would have, the brand new digital financial institution may develop its operations overseas, with out bodily shops. It’s famous that in the intervening time Piraeus Financial institution, after withdrawing from the markets of Albania, Bulgaria, Romania, Serbia and Egypt, solely has JSC PIRAEUS BANK ICB in Ukraine, the dimensions of which, nonetheless, is negligible.