Eurobank Ergasias

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Eurobank Ergasias SA
Native name
Τράπεζα Eurobank Ergasias AE
TypeAnonymi Etairia
Athex: EUROB
OTC Pink: EGFED
IndustryFinancial services
Founded1990
HeadquartersAthens, Greece
Number of locations
653 branches (Q3 2018) (Greece 350, of which 138 New TT Hellenic Postbank)
Key people
Nikolaos Karamouzis (Chairman)
Fokion Karavias (CEO)
ProductsRetail
Private
Corporate Banking
RevenueDecrease€1.882 billion (2017)[1]
Decrease€894 million (2017)[1]
Decrease€104 million (2017)[1]
Total assetsIncrease€62.395 billion (Q2 2019)[1]
Total equityDecrease€7.150 billion (2017)[1]
Common Equity Tier 1 =13.1% (Fully Loaded Basel III)
OwnerFairfax Financial Holdings (17.29%)[2]
Number of employees
13,209; 9,076(Greece);4,133 (abroad) Q3 2018[3]
Subsidiaries
Websitewww.eurobank.gr
Eurobank offices in Nicosia, Cyprus
The Eurobank is the official sponsor of the Museum of Aviation (Belgrade)

The Eurobank Group is a financial organisation that operates in Greece, Cyprus, Luxembourg, Serbia, Bulgaria and UK. As of December 2018, the Eurobank Group counts, €58 billion in assets, 653 customer service locations in Greece and abroad, and 13,162 employees.[4]

History[]

The Euromerchant Bank SA (Ευρωεπενδυτική Τράπεζα ΑΕ,[5] lit. transl. euro-investment bank) was founded in 1990.[6] It took over 75% of EFG Private Bank (Luxembourg) S.A.'s operations, which was integrated into it 1994. Acquisitions in Greece included Interbank Greece S.A. in 1996-97 and the branch network of Credit Lyonnais Greece S.A., 99.8% of Cretabank in 1998, Bank of Athens in 1999 and 50.1% of Ergobank.

In 1997, the Euromerchant Bank SA changed its name to EFG Eurobank S.A. and in 2000 to EFG Eurobank Ergasias S.A. after taking over the renowned Ergasias Bank. A financial products subsidiary was founded in 2007 (49.9% owned by employees). In 2012, the bank sold 70% of the Polish branches called Polbank to Raiffeisen Bank International.

In 2012, the Spiros Latsis associated Eurobank EFG merger with Petr Aven's Alfa-Bank was cancelled because of the Greek debt crisis.[7]

After the Greek financial crisis and bailouts of Greek banks in 2012, Swiss-Luxembourg based EFG Group—the then owner of Eurobank—was told to separate the Greek bank from the rest of its business. In July of that year Eurobank was deconsolidated from the group and its shares sold to the Greek Latsis family and it was renamed Eurobank Ergasias.[8]

In January 2013, the National Bank of Greece made an offer, which ultimately did not go through, to take over Eurobank Ergasias; 64,000 Eurobank shareholders and the Greek capital market commission agreed.[9] A few weeks after the buyout proposal NBG presented plans to reduce the staff of the new banking group, especially by means of encouraging early retirement.[citation needed]

The bank was the third largest in Greece by total asset by total loans and total deposits, and the fourth by market capitalisation—as at December 2014.

Since 1 February 2015, the chairman and non-executive director of Eurobank Ergasias has been Nikolaos Karamouzis; Fokion Karavias has been the CEO and executive director since the same day.[10] Canadian fund Fairfax Financial are major shareholders, with an 18.2% stake in 2018, that was increased after the takeover of Grivalia Properties until 32.9%.[11]

In the end of year 2015 results, total net loans were €39.9 billion (non performing 43.8%, of which provisions were at 53.3%), customer deposits €31.4 billion, and central bank funding was €24.3 billion.

At the end of 2020, the bad loans of the group reached an amount of €5.7 billion. In March 2020, Eurobank announced a project for reducing its nonperforming loans index from 14% to 9%.[12]

Major acquisitions[]

  • In 1998, 78.23% of Bulgarian Postbank was taken over.
  • In 2000 Acquisition of a 19.25% participation in Bancpost in Romania, which was later increased
  • In 2002 EFG Eurobank Ergasias – Telesis Investment Bank merger. Acquisition of 50% in Alico / CEH Balkan Holdings leading to a 43% participation in Postbank Bulgaria
  • In 2003 Merger through absorption of "Ergoinvest S.A.". Merger by absorption of "Investment Development Fund S.A.". Establishment of Euroline Retail Services (Romania) - 80% Eurobank Cards and 19.961% Bancpost. Establishment of Eurocredit Retail Services (Cyprus) as a 100% subsidiary of Eurobank Cards.
  • In 2004 Establishment of Euroline Retail Services AD (Serbia) - 100% subsidiary of Eurobank Cards
  • In 2006 Acquisition of 100% of Nacionalna štedionica–banka in Serbia and forming Eurobank a.d.
  • In 2006 Acquisition of 70% of Tekfenbank in Turkey, 99.3% of Universal Bank in Ukraine and 74.3% of Bulgarian Postbank in Bulgaria
  • On 23 December 2012, Eurobank sells all its shares (70%) of the Tekfenbank to Kuwait's Burgan Bank.[13]
  • On 16 January 2015, Eurobank asks Greek Central Bank for Emergency Liquidity Assistance (ELA) [14]
  • On 17 July 2015 the subsidiary Postbank (Bulgaria) buys the Bulgarian branches of fellow Greek lender Alpha Bank.
  • In April 2018, its Romanian subsidiary, Bancpost, was sold to Banca Transilvania, the largest Romanian bank.
  • In November 2018, Eurobank announced the acquisition of the real estate investment company Grivalia Properties, controlled by Fairfax Financial Holdings. Fairfax increased its stake in Eurobank after the takeover.[15] In the same month, Eurobank acquired Piraeus Bank's banking subsidiary in Bulgaria (PBB).[16]

Branches[]

Eurobank a.d. is a bank founded in 2006, with headquarters in Belgrade, Serbia. It is a subsidiary Eurobank Ergasias; and has 80 branches in Serbia. Eurobank started operating in Serbia in 2003. The first five years were marked by the acquisition of Postbanka, followed by the merger with Nacionalna štedionica Banka. In October 2006, the bank began operating under a single brand, name and visual identity.[17][18] In 2016, the bank had €1.337 billion in assets and revenue of €18.42 million.[17]

See also[]

References[]

  1. ^ Jump up to: a b c d e https://www.eurobank.gr/-/media/eurobank/omilos/enimerosi-ependuton/enimerosi-metoxon-eurobank/oikonomika-apotelesmata-part-01/2017/full-year-2017/4q2017-results-pr-en.pdf
  2. ^ Μαυρογιωργη, Φαιδρα. "Τράπεζες στα χέρια των Funds". Retrieved 17 August 2017.
  3. ^ "Profile - helex.gr". www.helex.gr. Retrieved 17 August 2017.
  4. ^ "The Eurobank Group". www.eurobank.gr. Retrieved 2019-07-31.
  5. ^ "Eurobank Ergasias". www.eurobank.gr. Retrieved 17 August 2017.
  6. ^ "EFG Eurobank Ergasias - History". eurobank.gr. Archived from the original on 7 August 2011. Retrieved 23 April 2018.
  7. ^ "Alpha Bank sagt Fusion mit Eurobank ab. Die Fusion zwischen der Alpha Bank und der EFG Eurobank ist abgesagt worden. Die Alpha Bank will den Fusionsvorschlag zurückziehen, weil der Schuldenschnitt für Griechenland höhere Verluste mit sich bringt als erwartet" [Alpha Bank cancels merger with Eurobank. The merger between Alpha Bank and EFG Eurobank has been canceled. Alpha Bank wants to withdraw the merger proposal because the debt cut for Greece will result in higher losses than expected.]. Handelsblatt (in German). 14 March 2012. Archived from the original on 25 January 2013. Retrieved 6 July 2021.
  8. ^ "Greece's EFG Eurobank to split from EFG Group". Reuters. July 23, 2012.
  9. ^ "Greece's National Bank finalizes swap to create nation's 'largest banking group'". The China Post. Athens. Agence France-Presse. 2013-02-20. Archived from the original on 2016-08-05.
  10. ^ "Eurobank Ergasias". www.eurobank.gr. Archived from the original on 17 August 2017. Retrieved 17 August 2017.
  11. ^ Monga, Nektaria Stamouli and Vipal (2018-11-26). "Greece's Eurobank to Acquire Grivalia Properties". Wall Street Journal. ISSN 0099-9660. Retrieved 2021-07-26.
  12. ^ Furber, Sophia (11 March 2021). "Eurobank unveils €3.3B 'Mexico' bad-loan securitization". www.spglobal.com. Retrieved 2021-07-26.
  13. ^ "Burgan Bank Concludes Purchase of Eurobank Tekfen". Bloomberg. 2012-12-23. Retrieved 2015-01-16.
  14. ^ "Greece's Eurobank, Alpha Bank Ask Central Bank for Emergency Liquidity Assistance". Wall Street Journal. 2015-01-16. Retrieved 2015-01-16.
  15. ^ Hope, Kerin (26 November 2018). "Greece's Eurobank to accelerate bad loan reduction with Grivalia takeover". Financial Times. Retrieved 2021-07-26.
  16. ^ Kokkinidis, Tasos (2018-11-08). "Piraeus Bank Sells Bulgarian Subsidiary to Eurobank". GreekReporter.com. Retrieved 2021-07-26.
  17. ^ Jump up to: a b "FINANSIJSKI IZVEŠTAJI ZA GODINU ZAVRŠENU 31. DECEMBRA 2017. GODINE I IZVEŠTAJ NEZAVISNOG REVIZORA" (PDF). eurobank.rs (in Serbian). 19 April 2018. Retrieved 16 December 2018.
  18. ^ EB

External links[]

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