PIRAEUS FINANCIAL HOLDINGS S.A.
Press release
Continued growth for Piraeus Bank Group's operations and profitability in 2008
Piraeus Bank entered 2008 with a stronger capital base and robust liquidity ratio; based on the development of figures in the first quarter, deposits growth has further accelerated, while all other Group operations are also exhibiting strong growth dynamics and increase in market shares where it participates. These were the key messages by Michalis Sallas, Chairman of Piraeus Bank Group, during his presentation at the Ordinary General Meeting of Shareholders of Piraeus Bank, at which approximately 40% of shareholders were represented.
Mr. Sallas pointed out that Piraeus Bank will be stronger this year, growing in a healthy and dynamic domestic banking and economic environment, despite the turmoil in international markets. He also noted that for 2008 profitability is forecasted significantly above 600 million euros against 503 million euros in 2007, i.e. excluding the net profit from the Bank of Cyprus stake disposal. With respect to quality of the loan portfolio, he mentioned that this is showing continuοus improvement both in Greece and internationally, in parallel with the substantial growth of the Group volumes.
Regarding the Group's 3-year Business Plan for the period 2008-2010, Mr. Sallas was confident that it is developing in accordance with management's plan, both in terms of business growth as well as branch openings in Greece and abroad, with the additional positive element, that deposits are expanding at even better pace of growth and the ratio 'loans to deposits' is improving further in the first quarter of 2008 compared to December 2007.
Full Year 2007 Results and Volumes
Specifically, as far as the Full Year 2007 results are concerned, Mr. Sallas noted: "2007 was yet another important year for Piraeus Bank, as we continued the Group's dynamic growth and achieved the targets that we had set.
Group's net profit attributable to shareholders increased by 50%, amounting to 653 million euros, before the additional tax burden incurred in January 2008 to banking capital gains retroactively as of 2007. Taking into account the additional tax burden, net profit amounted to 622 million euros, up by 43%.
In 2007, Piraeus Group expanded its international presence in Ukraine with the acquisition of International Commerce Bank and in the beginning of 2008 in Cyprus with Piraeus Bank Cyprus, following the acquisition of the branch network of Arab Bank Cyprus. Thus, currently, Piraeus Bank Group has a presence in 9 countries abroad.
In total, 208 new branches were added to the Group in 2007, out of which 19 in Greece and 189 abroad. Additionally 3,104 new job positions were created, out of which 826 in Greece and 2,278 abroad. Thus, on December 31st 2007, human resources increased to 12,357 employees, out of whom 6,600 were allocated in Greece and 5,757 abroad. The Group's network reached 744 branches, specifically 320 branches in Greece and 424 abroad.
At the end of December 2007, the Group's total assets reached 46.4 billion euros, up by 50% yoy, loans amounted to 30.7 billion euros, an increase of 48% and deposits & retail bonds issued to customers and retail investors reached 23.9 billion euros recording an increase of 33%. The number of customers in Greece exceeded 1.9 million compared to 1.6 million at the end of 2006, while taking into account customers in South Eastern Europe and Egypt the total number of customers at the end of the year surpassed 2.7 million".
Dividend for 2007
Based on net earnings per share which amounted to 2.14 euros (calculated on the weighted average number of shares in issue during the year), the Bank's Board of Directors proposed and the General Meeting decided on the distribution of a total dividend of 0.72 euros per share for 2007, of which 0.36 euros has already been distributed as an interim dividend. The dividend is up by 41% against 2006 (?0.51 per share, adjusted for the share capital increase) and corresponds to a dividend yield of 3.4% based on yesterday's closing share price.
Record date is Thursday, 15 May 2008. As of Friday, 16 May 2008, the share will be traded ex-dividend, while the payment of the remaining dividend amount (i.e. 0.36 euros per share) will commence on Monday 26 May 2008.
Piraeus Bank entered 2008 with a stronger capital base and robust liquidity ratio; based on the development of figures in the first quarter, deposits growth has further accelerated, while all other Group operations are also exhibiting strong growth dynamics and increase in market shares where it participates. These were the key messages by Michalis Sallas, Chairman of Piraeus Bank Group, during his presentation at the Ordinary General Meeting of Shareholders of Piraeus Bank, at which approximately 40% of shareholders were represented.
Mr. Sallas pointed out that Piraeus Bank will be stronger this year, growing in a healthy and dynamic domestic banking and economic environment, despite the turmoil in international markets. He also noted that for 2008 profitability is forecasted significantly above 600 million euros against 503 million euros in 2007, i.e. excluding the net profit from the Bank of Cyprus stake disposal. With respect to quality of the loan portfolio, he mentioned that this is showing continuοus improvement both in Greece and internationally, in parallel with the substantial growth of the Group volumes.
Regarding the Group's 3-year Business Plan for the period 2008-2010, Mr. Sallas was confident that it is developing in accordance with management's plan, both in terms of business growth as well as branch openings in Greece and abroad, with the additional positive element, that deposits are expanding at even better pace of growth and the ratio 'loans to deposits' is improving further in the first quarter of 2008 compared to December 2007.
Full Year 2007 Results and Volumes
Specifically, as far as the Full Year 2007 results are concerned, Mr. Sallas noted: "2007 was yet another important year for Piraeus Bank, as we continued the Group's dynamic growth and achieved the targets that we had set.
Group's net profit attributable to shareholders increased by 50%, amounting to 653 million euros, before the additional tax burden incurred in January 2008 to banking capital gains retroactively as of 2007. Taking into account the additional tax burden, net profit amounted to 622 million euros, up by 43%.
In 2007, Piraeus Group expanded its international presence in Ukraine with the acquisition of International Commerce Bank and in the beginning of 2008 in Cyprus with Piraeus Bank Cyprus, following the acquisition of the branch network of Arab Bank Cyprus. Thus, currently, Piraeus Bank Group has a presence in 9 countries abroad.
In total, 208 new branches were added to the Group in 2007, out of which 19 in Greece and 189 abroad. Additionally 3,104 new job positions were created, out of which 826 in Greece and 2,278 abroad. Thus, on December 31st 2007, human resources increased to 12,357 employees, out of whom 6,600 were allocated in Greece and 5,757 abroad. The Group's network reached 744 branches, specifically 320 branches in Greece and 424 abroad.
At the end of December 2007, the Group's total assets reached 46.4 billion euros, up by 50% yoy, loans amounted to 30.7 billion euros, an increase of 48% and deposits & retail bonds issued to customers and retail investors reached 23.9 billion euros recording an increase of 33%. The number of customers in Greece exceeded 1.9 million compared to 1.6 million at the end of 2006, while taking into account customers in South Eastern Europe and Egypt the total number of customers at the end of the year surpassed 2.7 million".
Dividend for 2007
Based on net earnings per share which amounted to 2.14 euros (calculated on the weighted average number of shares in issue during the year), the Bank's Board of Directors proposed and the General Meeting decided on the distribution of a total dividend of 0.72 euros per share for 2007, of which 0.36 euros has already been distributed as an interim dividend. The dividend is up by 41% against 2006 (?0.51 per share, adjusted for the share capital increase) and corresponds to a dividend yield of 3.4% based on yesterday's closing share price.
Record date is Thursday, 15 May 2008. As of Friday, 16 May 2008, the share will be traded ex-dividend, while the payment of the remaining dividend amount (i.e. 0.36 euros per share) will commence on Monday 26 May 2008.