Eurobank lands Pi­raeus sub­sidiary

Kathimerini English - - Focus - EV­GE­NIA TZORTZI

An agree­ment for the trans­fer of Pi­raeus Bank’s sub­sidiary in Bul­garia (PBB) to Eurobank’s arm in the neigh­bor­ing coun­try, Eurobank Bul­garia (Post­bank), was con­firmed yes­ter­day by both Greek bank­ing groups.

This ac­qui­si­tion strength­ens Eurobank group’s pres­ence in the Bul­gar­ian mar­ket, rais­ing its mar­ket share in the Balkan na­tion to above 10 per­cent and help­ing it climb to third place in terms of loan is­sues.

PBB is ac­tive mainly in re­tail bank­ing, par­tic­u­larly in cor­po­rate bank­ing. Based on Septem­ber 2018 fig­ures it has to­tal as­sets of 1.7 bil­lion eu­ros, loans of 820 mil­lion eu­ros and de­posits adding up to 1.3 bil­lion. It em­ploys 900 work­ers and has a net­work of 70 branches.

The price of the takeover comes to 75 mil­lion eu­ros and will only have a mar­ginal im­pact on Eurobank’s cap­i­tal.

Upon com­ple­tion of the trans­ac­tion Post­bank will have to­tal as­sets of more than 5 bil­lion eu­ros, own funds of over 600 mil­lion eu­ros. Af­ter the full im­ple­men­ta­tion of the syn­er­gies an­tic­i­pated, the re­sults be­fore pro­vi­sions (pay­ment pro­tec­tion in­sur­ance – PPI) will add up to 150 mil­lion eu­ros and net re­sults should ex­ceed 70 mil­lion eu­ros. Post­bank ex­pects to con­tinue en­joy­ing a ro­bust cap­i­tal base and strong liq­uid­ity af­ter the ac­qui­si­tion.

Lamda De­vel­op­ment

Post­bank will in­crease its mar­ket share to over 10 per­cent in Bul­garia with this takeover.

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