PIRAEUS BANK: Piraeus Bank further expansion Piraeus Bank, one of the largest privately banking groups in Greece, is one of the fastest growing institutions in Greece today, with an ever-increasing international presence. The latest developments are more than promising, and include increased profitability, growth and expansion abroad and reinforcement of the Group's position in its main business areas. Impressive first half 2005 results Piraeus Bank group reported a remarkable set of results for the 1st half of 2005. In particular, The Group's profit after tax and minority interests amounted to EUR86.5 mn in H1 2005 compared to EUR56.9 mn in H1 2004, representing a growth of 51.9%. The basic and diluted after-tax EPS in H1 2005 reached EUR0.44 up from EUR0.29 the respective period of 2004, showing an increase of 50.8%. Moreover, total loans grew by 26% yoy, customer deposits by 20% yoy, while ROE improved to 19.3% from 14.2% last year. A series of acquisitions Since last May the Group has expanded its presence in the Balkans and Eastern Mediterranean basin, promoting its effort of outward looking policy and expansion. A key objective of the Group has been to expand its banking activities in markets that present significant growth potential. On this track the Group acquired on May 19, 2005 99.7% of the share capital of the Bulgarian Bank Eurobank A.D., enhancing its network to 65 branches in 28 cities in Bulgaria, corresponding to approximately 4.5% of the local market share. On the 30th of the same month the Bank acquired 80% of the share capital of the Serbian Atlas Bank, adding to its international network 11 branches in 3 cities. Thereafter, Piraeus Bank enhanced its international operations in developing countries by entering the promising Egyptian market in June, through the acquisition of 89.3% of the share capital of the Egyptian Commercial Bank (ECB), adding another 21 branches to its network. ECB's total assets amounted to Euro 507 mn, while it has been also assigned with a BB long term rating by Fitch. As Mr. Sallas, Chairman, recently stated "E.C.B. is an important investment of Piraeus Bank Group which falls into the general strategic target of enhancing Piraeus Bank's operations in the markets of South - Eastern Europe and Mediterranean basin". Affirmed ratings The Group's improving profitability, financial condition and business outlook also translated into affirmed ratings in August 2005. Fitch affirmed the Bank's Long-term rating at 'BBB+' and Short-term at 'F2', keeping its outlook stable. According to Fitch, the rating reflects the Bank's improving operating profitability, good capital adequacy and strengthening domestic competitiveness. In addition, Moody's affirmed the Bank's Long-term rating at 'Baa1' and Short-term at 'P-2', keeping its outlook stable. International Awards For a second consecutive year, Deutsche Bank, the world's largest Euro payment orders settlement Bank, honoured Piraeus Bank with the «2004 Euro STP Excellence Award» for its excellent quality of euro payments around the world. Piraeus Bank is the only Greek bank that has ever received a quality award from Deutsche Bank. This award was established by the international bank to reward innovative smart automations, ongoing payments systems upgrading and delivery of such services at low prices, distinguishing yet another time the quality and competitiveness of the Bank's services. Bank of Piraeus is listed on the Athens Exchange (ASE - TPEIR, Reuters - BOPr.AT, Bloomberg - TPEIR.GA, ISIN GRS014013007). It has a market capitalization of E 3.3 billion and is one of Athens Exchange's more liquid shares. At the end of June 2005, individual investors held 48% of the shares, followed by foreign institutional investors with 26% and Greek institutional investors with 12%. ING has a 4% stake in the Group. by Capital Link
September 19, 2005
