Three consecutive stages of 100, 500 and 1.500 days are set to finalize the course of developing Emporiki to a Model Greek Banking Organization, with a primarily commercial profile and key edges to innovation, competitiveness and top quality customer service, following the successful first period focused at completing a review and rationalization changes and preparing for a dynamic comeback to the banking activities.
The above was announced, inter alia, at today s Press Conference held in Athens by Mr. Jean-Frederic de Leusse, Chairman of the Board, Emporiki bank and Head of International Development, Credit Agricole S.A. and Mr. Anthony Crontiras, Chief Executive Officer, Emporiki Bank.
The Chairman of Emporiki Bank positively referred to "the coordinated and intense efforts of the new management and employees, that are already bearing fruit. As a result of this job, Emporiki is today the highest ranking Greek bank in non-serviced loans provisions and credit rating, and fulfills the conditions for further developing powerful competitive commercial advantages to take it one step closer to the achievement of its strategic objectives. One of these is the transfer of international know-how and the continuous support by one of the leading financial organizations globally".
The Chief Executive Officer of Emporiki Bank presented the main successes and rationalization steps completed during the first 100 days of the new management. Mr. Crontiras referred more specifically at five milestones:
- Alignment of the Bank s operating and governance model to the standards of Credit Agricole S.A., with the completion of the Joining Forces program (September 2006 - February 2007). Over 300 Emporiki Bank managers and approximately 100 Credit Agricole managers worked for this program, investing more than 4,500 work-hours. In the context of the program, critical Sections were significantly upgraded, such as Financial Services and Risk Management. A key success to the latter Section has been the introduction of an internal market risk model (Value-at-Risk), currently in the process of becoming certified by the Bank of Greece. Emporiki will thus be the third Bank, following Eurobank and NBG to have a certified internal model concerning market risk, thus guaranteeing more accurate and lower capital bonds and an immediate decrease in prudential capitals.
- Implementation of a program to improve sales effectiveness to the entire branch network, finalization of first stage back-office centralization and increase of customer facing sales positions. Approximately 90% of the branches already operate with the new standards of the sales reinforcement program, scheduled to complete at the end of March.
- Strategic focus of the Bank?s operations, through sale of its non-banking share holdings and a portfolio rationalization program.
- Establishment of a more flexible organizational structure, with a clear focus on the two large market sectors (Corporate & Investment Banking and Retail Banking), uniform management for all banking operations and elevation of the significance of the Human Resources unit.
- Significant improvement of the Bank s operating results (+45.6%) and finalization of a thorough audit, based on the methodologies of credit risk management and the accounting principles and forecasts of Credit Agricole, and the consent of the Bank of Greece.
Mr. Crontiras then presented the main stages of the transformation program, which will evolve in a framework of 100 - 500 - 1.500 days.
The Bank has already entered the first stage of the 100 days mobilization, "currently focusing on escalating the commercial counter-attack in the market, setting priorities in view of the overall transformation and repositioning of the Bank?s profile and completing the new business plan for 2007-2011, which will be officially announced on April 27".
The second 500-day stage (1/5/2007 - 30/6/2008) will set the foundations for:
- The regeneration of Emporiki, by turning it into a Model Greek Banking Organization, based on its ?brand name?, network and customers and integrating when necessary the know-how and best practices of Credit Agricole.
- The construction of a modern, internationally oriented Greek Bank, which will provide significant professional opportunities to its employees and will gradually leave behind the structures, operational mode and culture of a publicly governed organization.
A decisive role to this process is attributed to the integration of best practices and operating standards of Credit Agricole to Emporiki?s key functions (know-how transfer).
The third stage to the course of restructuring Emporiki Bank, coinciding with the final date (31 / 12 / 2011) of the 5-year business plan, is to be completed within 1.500 days, with full recapture of Emporiki s competitiveness vis-a-vis other Greek Banks.