Emporiki Bank board to propose euro 850 million capital increase to Extraordinary General Shareholders Meeting.
-The EGM to be held on 26 February 2009
-Provisioning policy adapted to the deteriorating market conditions
-Bernard Mary, Credit Agricole S. A. Deputy CEO, is appointed to the Board of Directors of Emporiki Bank.
The Board of Directors of Emporiki Bank met today, to review the Bank s financial situation and the impact of the current market conditions, which are likely to deteriorate further.
In addition Bernard Mary, Credit Agricole S.A. Deputy CEO, Head of International Retail Banking, was appointed to the Board of Directors. The Board took the following decisions:
-As previously announced, to propose a capital increase to strengthen the Bank's liquidity and capital base in response to regulatory requirements and to allow it to continue to play its significant role in financing the Greek economy. This proposed euro 850 million capital increase will be put to the vote at an Extraordinary General Shareholders Meeting on 26 February 2009. Credit Agricole will, in addition to subscribing to its allocated share of the capital increase, also subscribe to any outstanding shares if invited to do so by the board.
(1) Thanks to the capital increase and other supportive measures Emporiki Bank aims to reach a solvency ratio above 10 per cent at 30 June 2009.
(1) By Greek Law, once the capital increase has closed, it is the board of directors that decides the allocation of any outstanding shares and at its discretion invites an entity/entities to subcribe to them.
-Adapt provisioning policy to the deteriorating market conditions:
- Increase loan coverage ratio to 49% at the end of December 2008.
The total amount of provisions for 2008 is expected to be close to euro 500 million, of which about euro 300 million were booked in the fourth quarter 2008. The exact amount will be announced at the time of the bank?s results for financial year 2008 on Wednesday, 26 February 2009.
-Reduce the deferred tax asset in the fourth quarter 2008 by approximately euro 100 million.
Welcoming the appointment of Bernard Mary to the Board, Jean-Frederic de Leusse, Chairman of Emporiki Bank, Credit Agricole S.A. Deputy CEO, said:
"Emporiki bank enjoys the full support of Credit Agricole S.A. Our objective is to make sure Emporiki Bank, is well positioned to meet all future challenges and benefit from opportunities once the economic environment improves. Thanks to this rights issue the bank will have a strong capital base to be able to continue to significantly contribute to the Greek economy. Together we will build the future Emporiki Bank."
Mr. Anthony Crontiras, Vice-Chairman of the BoD and CEO of Emporiki Bank stated:
"Through its share capital increase Emporiki bank shall continue playing its leading role in financing the Greek Economy, as it already did in the last six months of 2008 in very tight liquidity conditions. The euro 850 mn share capital increase is at the same time a very important investment gesture for Greece, by one of the top banking groups of the world, in these challenging for the country circumstances".
Press contact:
Christina Dimoudi / Tel. 210 328 2706 / E-mail: dimoudi.c@emporiki.gr