Piraeus Bank's Ordinary General Meeting of Shareholders
2009 is developing into a year of recession for the world's largest countries as well as weak or zero economic growth for Greece. In this environment of significant macroeconomic imbalances, Piraeus Bank Group has adjusted its policy, focusing on assuring a high level of liquidity and capital adequacy, with simultaneous drastic operating cost containment. These were the key messages by Michalis Sallas, Chairman of Piraeus Bank Group, during his speech at the Ordinary General Meeting of the Shareholders of Piraeus Bank.
Mr. Sallas pointed out that Piraeus Bank, in this difficult conjuncture, is focusing on offering superior customer service, as well as on preserving the quality of its loan portfolio, applying a prudent credit policy. The Chairman of Piraeus Bank mentioned that the market's credit expansion will inevitably be restrained in comparison with previous years. However, this crisis is an opportunity for rationalization, rearrangement of sources and coming out from it with even more dynamics. Piraeus Bank is working towards this direction with determination.
2008 Results and Figures
Specifically, as far as the Full Year 2008 results are concerned, Mr. Sallas noted: 2008 turned out to be a difficult year for the economy and the banking industry internationally. The unprecedented conditions we faced called for the adjustment of our policies based on the new facts and aimed at protecting the Group and strengthening its balance sheet. For this reason we decided, to take further additional provisions of proactive nature of euro 215 mn in the last quarter, in addition to the total provisions of euro 173 mn that we had estimated for the year.
Thus, Group's net profit attributable to shareholders, excluding the additional provisions, reached euro 530 mn compared to euro 503 mn in 2007, increased by 5%. When the additional provisions are deducted, net profit attributable to shareholders amounted to euro 315 mn. Pre-tax and provisions profit amounted to euro 774 mn against euro 742 mn in 2007, increased by 4%.
Loans in arrears above 90 days (IFRS 7), stood at 3.56%, despite the deterioration of the economy, comprising the best ratio in the Greek market. The coverage ratio (accumulated provisions over loans in arrears) was significantly reinforced to 51% versus 40% in 2007, while including tangible collaterals, it reaches 110%. The Group's capital adequacy was maintained at a very satisfactory level, with the total CAD ratio standing at 10% and Tier I at 8%.
In total, 151 new branches were added to the Group in 2008, out of which 38 in Greece and 113 abroad. Additionally, 1,898 new job positions were created, out of which 289 in Greece and 1,609 abroad. The Group's network reached 895 branches, specifically 358 in Greece and 537 abroad in 9 countries, completing the current phase of expansion.
At the end of December 2008, the Group's total assets reached euro 54.9 bn, up by 18% yoy, loans amounted to euro 39.0 bn, an increase of 27% and deposits & retail bonds reached euro 31.3 bn, recording an increase of 31%. The number of customers in Greece amounted to 2.1 million compared to 1.9 million at the end of 2007, while taking into account the customers in South Eastern Europe and Egypt the total number surpassed 3.3 million at the end of the year.
Dividend of the Year
Based on the net profit per share which amounted to euro 0.97 (calculated on the weighted average number of shares during the year), the General Meeting of the Shareholders approved the proposal of the Bank's Board of Directors, regarding the distribution of a dividend of euro 0.10 per share (net of 10% tax deduction and the inclusion of the dividend that corresponds to the treasury shares). This dividend will be paid in the form of shares, in particular with the distribution of 1 new share for every 47 existing shares.
The dividend record date will be defined immediately following the approvals from the relevant authorities.