Introducing the new banking organisation EFG Eurobank Ergasias

A press conference was held yesterday for the purpose of introducing the new banking organisation EFG Eurobank Ergasias, after its recent legal merger. The presentation by the members of the Executive Board also included an analysis of the bank's development strategy for each area of activity.
Chairman Mr Xenophon Nickitas drew attention to the fact that the new banking organisation already occupied third place in the Greek banking sector, with assets in excess of GRD 5 trillion, shareholders' equity of more than GRD 600 billion, a network of 330 branches throughout the country, and a staff of approximately 7,500. He added that the potential which the new organisation is capable of developing stems chiefly from a series of qualitative characteristics made possible by the complementarities between the two merged banks and the creative synthesis of the unique comparative advantages which each has brought to the new banking organisation. In this way, he stressed, and on the basis of a new customer-centred approach, the objective is to maintain high rates of organic growth of over 40 per cent per annum.Managing Director Mr Nicholas Nanopoulos presented the basic aims of the new banking organisation's strategy. These are:

A leading position in the domestic market and development based on the most up-to-date international standards.

A presence in the wider region.

Access to the markets of Western Europe, directly or indirectly, through strategic alliances (Deutsche Bank, EFG Bank Group).

A leading position in the business activities and distribution channels of the New Economy.

A competitive position in the single-currency European market. The means for achieving these aims are:

A customer-centred approach.

Multiple distribution networks.

Innovation and high-quality products and services

New technologies. Mr Nanopoulos described the overall picture and presented the basic indicators of the new banking organisation's activities in the most important fields of finance. He also cited the market shares which the new bank accounts for in all these fields, and pointed out that the basic business approach to the whole range of activities is to emphasise areas of high returns and high growth-potential, in order to create value for shareholders. Finally, Mr Nanopoulos spoke of the strategic collaboration with Deutsche Bank, which is already being successfully developed in the fields of capital markets, financing of major projects, shipping, mutual funds, insurance, derivatives, technology, and property management. This collaboration will be further expanded into the spheres of financing of large enterprises, training, trusteeship, international stock-market transactions, e-banking, and electronic payments systems.The Deputy Managing Director Mr Byron Ballis described in detail the activities, strategy, and aims of EFG Eurobank Ergasias in the broader framework of retail banking, which has seen major market-share increases in every constituent sector, accounts for more than 2,000,000 customers, and enjoys a leading position in the domestic market. Mr Ballis went on to explain that, in the area of investment and savings products, 11 different programmes and 16 mutual funds are available to fully meet the needs of retail customers. In the area of finance for individuals, the following are on offer:

24 consumer-loan programmes, with a market share in total consumer credit of 25 per cent

a wide range of credit cards, with approximately 750,000 cards issued to date

20 mortgage programmes, accounting for a market share of 16 - 20 per cent of total housing loans, subsidised or otherwise.

In the case of new consumer and housing credit loans, the market share exceeds 30 per cent. Mr Ballis also presented the development strategy for the new distribution channels being created by the "New Economy". He pointed out that EFG Eurobank Ergasias will achieve a leading position in this area, offering comprehensive and easy access and service to customers by means of multiple channels. Banking services are already provided through ATMs, Phone Banking, the Internet (www.Eurobank.gr), digital TV (NOVA), and Wap mobile-telephony technology. Deputy Managing Director Mr Nikolaos Karamouzis gave a detailed account of activities and strategy in the areas of investment banking, stock-broking services, asset management, and private banking. Investment banking activities are developed through EFG Finance, which aims to provide high-quality products and services in investment banking, to manage institutional investors' portfolios, to provide comprehensive financial services and products to the corporate customer and institutional investor. The main activities in this field are the provision of capital to enterprises, financial consulting, debt issuance, institutional portfolio management, and share transactions. It already has a leading position in company underwriting, with an approximately 20 per cent market share.
In private banking, Mr Karamouzis noted that 15 specialist units have been established throughout Greece, whilst each branch has a specialised investment advisor. The total capital under management by the Private Banking department amounts to GRD 1.5 trillion. The aim is to offer comprehensive financial services and solutions for managing assets of high net-worth individuals, namely by providing up-to-date products, security, and satisfactory yields. An important advantage is, of course, the collaboration with the EFG Bank Group, which provides direct access to international markets.