Management Statements
“With the absorption of the banking operations of the 3 Cypriot Banks in Greece, Piraeus Bank is actively participating in the restructuring and stabilisation of the Greek banking system and is contributing to the efforts at restructuring of the Greek economy. In this manner, we are safeguarding the depositors, customers and employees of the 3 Cypriot banks in Greece, and at the same time, the Bank and its shareholders will proceed from a better position going into the forthcoming recapitalisation of the Bank.
Because in recent days, there has been a heightened concern regarding deposits, across Europe and Greece, as a result of the turmoil in Cyprus and the contradictory statements made by European officials, I would like to point out that the Greek banking system is safe and protected. This is because Greek banks with their capital restoration and the restructuring of the banking system are in a stronger position within the Eurosystem, a fact that has been recognized by the European authorities. We must not forget that depositor confidence in our banking system is the only way to restore liquidity in the economy and the fastest way out of the crisis. “
Michalis Sallas, Chairman of BoD
“Piraeus Bank, following the acquisition of ATEbank and Geniki Bank, proceeded with the acquisition of the domestic banking operations of Bank of Cyprus, Cyprus Popular Bank and Hellenic Bank, after submitting an offer in the relevant process organized by the Bank of Greece and the Hellenic Financial Stability Fund (HFSF). Following this transaction, the Group’s total assets amount to €98 bn, with a network of 1,650 branches and c.24,000 employees.
The full year 2012 pre tax and provision profitability of Piraeus Bank Group amounted to €1,322 mn, while total impairment charges reached €2,508 mn bringing the net result to -€513 mn. Net revenues amounted to €2,217 mn and operating costs to €909 mn, consolidating ATEbank for 5 months and Geniki Bank for half a month. On a like-for-like basis, the Group’s operating costs declined by 9%, within the broader target that was set by the Bank’s management for 2012.
Piraeus Bank, has an increased responsibility due to the significant improvement of its market position in Greece, aims to provide sufficient liquidity to businesses and households on competitive terms, actively contributing to the recovery of the Greek economy.”
Stavros Lekkakos, Managing Director & CEO
______________________
On 27.07.12, Piraeus Bank acquired the “good” part of ATEbank (selected assets and liabilities, hereafter ATEbank), following a tendering procedure. As a result, the sum of the selected balance sheet figures of ATEbank for 31.12.12 is included in the figures of this Press Release, as well as the ATEbank’s results for the period 27.07.12 to 31.12.12.
On 14.12.12, Piraeus Bank concluded the acquisition of the total stake of Société Générale (99.08%) in Geniki Bank. As a result, the sum of the selected balance sheet figures of Geniki Bank for 31.12.12 is included in the figures of this Press Release, as well as the Geniki Bank’s results for the period 14.12.12 to 31.12.12.
Due to the absorption of selected items of ATEbank as of 27.07.12 and Geniki Bank as of 14.12.12, it is not possible to display comparable volumes and results of the Group for previous time periods.
Group Performance Highlights
FY 2012 Results
• Net Interest Income amounted to €1,028 mn.
• Net Fees & Commission Income reached €218 mn, 91% of which originated from recurring revenue sources (commercial banking commissions).
• Net Revenues amounted to €2,217 mn, following a contribution of €394 mn from the participation in the Greek Government Bond buyback program in December 2012 (it should be noted that an additional impairment charge of €311 mn was posted in the FY ’12 results related to the new GGBs) and €351 mn from the negative goodwill resulting from the acquisition of Geniki Bank.
• Operating Costs reached €909 mn. The aforementioned expenses include, inter alia, €12 mn one-off unamortized cost from 82 branches that ceased operating during the 2012. The like-for-like operating costs of Piraeus Group for the full year 2012 (i.e. excluding ATEbank, Geniki Bank and other extraordinary expenses) were down 9% year-on-year.
• Profit before Tax and Provisions was €1,322 mn for the full year 2012.
• Following the significant deterioration of the macroeconomic environment, total impairment charges reached a high level during 2012 (€2,508 mn), of which €2,043 mn is related to loan impairment charges, a €311 mn additional impairment for the new GGBs and €153 mn for other impairment charges for securities, tangible and intangible assets.
• Net result from continuing operations attributable to shareholders for full year 2012 was a loss of €513 mn.
Please find attached the press release.
“With the absorption of the banking operations of the 3 Cypriot Banks in Greece, Piraeus Bank is actively participating in the restructuring and stabilisation of the Greek banking system and is contributing to the efforts at restructuring of the Greek economy. In this manner, we are safeguarding the depositors, customers and employees of the 3 Cypriot banks in Greece, and at the same time, the Bank and its shareholders will proceed from a better position going into the forthcoming recapitalisation of the Bank.
Because in recent days, there has been a heightened concern regarding deposits, across Europe and Greece, as a result of the turmoil in Cyprus and the contradictory statements made by European officials, I would like to point out that the Greek banking system is safe and protected. This is because Greek banks with their capital restoration and the restructuring of the banking system are in a stronger position within the Eurosystem, a fact that has been recognized by the European authorities. We must not forget that depositor confidence in our banking system is the only way to restore liquidity in the economy and the fastest way out of the crisis. “
Michalis Sallas, Chairman of BoD
“Piraeus Bank, following the acquisition of ATEbank and Geniki Bank, proceeded with the acquisition of the domestic banking operations of Bank of Cyprus, Cyprus Popular Bank and Hellenic Bank, after submitting an offer in the relevant process organized by the Bank of Greece and the Hellenic Financial Stability Fund (HFSF). Following this transaction, the Group’s total assets amount to €98 bn, with a network of 1,650 branches and c.24,000 employees.
The full year 2012 pre tax and provision profitability of Piraeus Bank Group amounted to €1,322 mn, while total impairment charges reached €2,508 mn bringing the net result to -€513 mn. Net revenues amounted to €2,217 mn and operating costs to €909 mn, consolidating ATEbank for 5 months and Geniki Bank for half a month. On a like-for-like basis, the Group’s operating costs declined by 9%, within the broader target that was set by the Bank’s management for 2012.
Piraeus Bank, has an increased responsibility due to the significant improvement of its market position in Greece, aims to provide sufficient liquidity to businesses and households on competitive terms, actively contributing to the recovery of the Greek economy.”
Stavros Lekkakos, Managing Director & CEO
______________________
On 27.07.12, Piraeus Bank acquired the “good” part of ATEbank (selected assets and liabilities, hereafter ATEbank), following a tendering procedure. As a result, the sum of the selected balance sheet figures of ATEbank for 31.12.12 is included in the figures of this Press Release, as well as the ATEbank’s results for the period 27.07.12 to 31.12.12.
On 14.12.12, Piraeus Bank concluded the acquisition of the total stake of Société Générale (99.08%) in Geniki Bank. As a result, the sum of the selected balance sheet figures of Geniki Bank for 31.12.12 is included in the figures of this Press Release, as well as the Geniki Bank’s results for the period 14.12.12 to 31.12.12.
Due to the absorption of selected items of ATEbank as of 27.07.12 and Geniki Bank as of 14.12.12, it is not possible to display comparable volumes and results of the Group for previous time periods.
Group Performance Highlights
FY 2012 Results
• Net Interest Income amounted to €1,028 mn.
• Net Fees & Commission Income reached €218 mn, 91% of which originated from recurring revenue sources (commercial banking commissions).
• Net Revenues amounted to €2,217 mn, following a contribution of €394 mn from the participation in the Greek Government Bond buyback program in December 2012 (it should be noted that an additional impairment charge of €311 mn was posted in the FY ’12 results related to the new GGBs) and €351 mn from the negative goodwill resulting from the acquisition of Geniki Bank.
• Operating Costs reached €909 mn. The aforementioned expenses include, inter alia, €12 mn one-off unamortized cost from 82 branches that ceased operating during the 2012. The like-for-like operating costs of Piraeus Group for the full year 2012 (i.e. excluding ATEbank, Geniki Bank and other extraordinary expenses) were down 9% year-on-year.
• Profit before Tax and Provisions was €1,322 mn for the full year 2012.
• Following the significant deterioration of the macroeconomic environment, total impairment charges reached a high level during 2012 (€2,508 mn), of which €2,043 mn is related to loan impairment charges, a €311 mn additional impairment for the new GGBs and €153 mn for other impairment charges for securities, tangible and intangible assets.
• Net result from continuing operations attributable to shareholders for full year 2012 was a loss of €513 mn.
Please find attached the press release.
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