Alarm: Close to final closure of a large Greek bank – “Bomb” in the market

By | May 10, 2023

Banks: The future of Attica Bank is turning into a thriller as there is no bailout solution!

New serious obstacles are arising in the implementation of Attica Bank’s capital strengthening and consolidation plan, with the participation of the Kaymenakis-Baku-Exarchos investment scheme.

Potential strategic investors – who would take control of the bank once the project is finished – now establish as a necessary condition for their participation the commitment of the other majority shareholders (THS, TSMEDE), that after AMK there will be a merger with Pankritia. Bank.

The “owners” declare that it is not enough for them to support Attica Bank now and acquire its control in the next phase.

His goal is to create a strong scheme that will constitute the fifth pole in the Greek financial system. This can only be achieved if the “engineering bank” merges with Pankritia and other cooperatives.

According to the information, Thrinvest of Kaymenakis-Baku-Exarchos informed the Attica management, the HFSF and TSMEDE, that if there is no prior binding agreement for a merger with Pankritia, it will not provide the promised 100 million euros to AMK. , but it will be limited to a “goodwill” share of 20 million euros.

The withdrawal can only be a move of pressure and does not indicate a change of attitude and intentions on the part of the “owners” investment scheme.

However, it creates intense uncertainty as to the possibility of covering the large AMC, which is a condition for the successful completion of the first phase of Attica Bank’s restructuring and capital strengthening plan.

Without the 100 million from the owners, it will probably be impossible to cover AMK and it will be necessary to design a new scenario to strengthen the bank’s capital and/or find other investors.

New “episodes” are now expected in the series, which is gaining suspense as timelines for Attica Bank tighten.

Banks: Incredible movement by Eurobank- How their coffers were filled with movement… checkmate!

A simple move by Eurobank made it dominant in the Balkans!

Eurobank announces the signing of a binding agreement with AIK Banka ad Beograd (“AIK”) for the sale of its subsidiary in Serbia, Eurobank Direktna (the “Transaction”).

The Transaction values ​​100% of the share capital of Eurobank Direktna at EUR 280 million and is in line with Eurobank’s strategy of directing capital to investments with higher yield prospects (RoTBV) and further strengthening its presence in the main markets in which That operates. operates, specifically in Greece, Bulgaria and Cyprus.

It is estimated that the Transaction will contribute approximately 50 bp. to the CET 1 index of the Eurobank Group (based on the indices of the third quarter of 2022) which reflects the reduction in weighted assets.

The Transaction is expected to be completed within 2023 and is subject to required regulatory approvals.

Eurobank Direktna is headquartered in Belgrade and operates in 4 main areas: Retail Banking, Large and Medium Business Banking, Small Business Banking and Digital Banking, maintaining a market share based on total assets of 6%.

It has 1,600 employees, a network of 98 stores and the size of its balance sheet amounts to 2.4 billion euros.

Eurobank Direktna is 70% owned by Eurobank Holdings and 30% by the former shareholders of Direktna Banka.”

AIK Banka is one of the most distinguished banking institutions in the Serbian market with more than 40 years of tradition and an 8.2% asset-based market share. It provides high-quality banking services to more than 740,000 retail and business customers and has a strong digital presence.

Following international banking trends, AIK Banka achieves sustainable growth with a strong capital base by continually investing in innovative solutions tailored to
Consumer needs.

UBS is acting as exclusive financial advisor to Eurobank in the Transaction, while BNP Paribas is providing the fair and equitable valuation report.

Milbank LLP and Živković Samardžić Law Office act as international and local legal advisors to the seller, respectively.

Banks: A new era is coming for ATMs

Big changes are coming in the automatic withdrawal machines, since they radically change the format we knew. All the news in…

The reduction of bank branches in recent years, as well as their staff, subsequently leads to changes also in ATMs, which bear the “burden” of transactions from the public, especially in the midst of a pandemic.

For the situation that now prevails in the banking system, the data disclosed by the OTOE are typical:

In 2020 the average in the Eurozone was one bank branch for every 2,888 inhabitants, in Greece (with so many geographical and other peculiarities…) there was one branch for every 6,298 inhabitants.

But also in ATMs, which facilitate transactions, we had a decrease, in proportion to the population, compared to an increase in the Eurozone during the same period!

Thus, in 2019 we had 63.4 ATMs per 100,000 inhabitants in Greece, compared to 90.17 in Italy, 98.29 in France, 119.93 in Germany, 171.96 in Austria (source of the comparative data: European Banking Authority – EBA).

In a first phase, they will be friendlier and more… ecological!

Piraeus Bank is leading the way as it has become the first bank in the country to decide on the widespread installation of more than 300 Diebold Nixdorf DN SeriesTM ATMs.

These ATMs, in addition to a new design, will aim to significantly reduce energy consumption and CO2 emissions during their useful life.

The purpose-built new format ATMs are maintained and supported by the company’s innovative method DN AllConnectSM Data Engine, with the core idea of ​​interconnection and provision of user-friendly integrated services and enhanced security.

They will include a method that will enable the Bank to adopt Internet of Things (IoT) technology in which sensor data from connected systems is provided and evaluated in real time using cloud computing and machine learning, so that when an incident is reported, the exact root cause and type of remediation required are remotely identified, speeding up the recovery process.

The DN Series family of ATMs is made from recycled and recyclable materials and is 25% lighter than most traditional ATMs.

The other Greek banks are expected to gradually follow the same “logic” as Piraeus Bank.

Special measures will be taken regarding the security of transactions.

There has been a significant increase in recent years in the budgets of banks related to cybersecurity issues (amid the increase in risks in cyberspace), while the information says that in the next period a significant part of the bank budget it will go to areas such as infrastructure security and cloud security.

Banks: OTOE complaints for disappearance of ATMs

At the same time, the President of OTOE at the recent conference presented, among other things, some very important data on employment in credit institutions in Greece in the last three years.

In particular, as Mr. Giorgos Motsios said, in the period from 2018 to June 2021, total employment in credit institutions in Greece decreased by 21.2% (from 39,557 employees to 31,163).

• At the end of 2020, the decline in employment in Banks in Greece was 16%, compared to a 2.4% decline in Eurozone Banks.

• The new financial sector servicer companies that took over the management of the Banks’ MEAs now employ more than 4,000 employees, of which approximately 2,000 come from the systemic Banks.

• Between the end of 2018 and September 2021, 385 stores stopped operating, that is, 19.4% of the stores in the network in the Eurozone. At the end of 2020, the decrease was 12.21%. During the pandemic alone, 264 stores stopped operating.

• In our country in 2020 there was one bank employee for every 324 inhabitants, while in the Eurozone there was one for every 186 inhabitants.

• We had 18.78 stores per 100,000 inhabitants compared to 34.3 in France, 38.2 in Portugal, 38.8 in Italy and 49.7 in Spain!

• In 2020 the average in the Eurozone was one bank branch for every 2,888 inhabitants, in Greece (with so many supposed geographical peculiarities…) there was one branch for every 6,298 inhabitants.

• But also in ATMs, which facilitate transactions, we had a decrease, in proportion to the population, compared to an increase in the Eurozone during the same period. Thus, in 2019 we had 63.4 ATMs per 100,000 inhabitants in Greece compared to 90.17 in Italy, 98.29 in France, 119.93 in Germany, and 171.96 in Austria. (comparative data source European Banking Authority – EBA).

According to the president of OTOE, “we have an excessive reduction of points of sale and a lack of personnel in the sector in Greece, compared to the euro zone, undoubtedly more developed, in terms of digital banking, digital skills, infrastructure and transaction habits. of the public”. .

OTOE sends a message to Bank Management that “the greater downsizing of Banks leads to a reduction in the expectations of employees for their professional development and for the improvement of their position, with all the negative consequences that this entails” .

As for the recent positive results of the Banks, the reestablishment of their role in supporting development remains pending, as estimated by Mr. Motsios.

It remains pending, because it presupposes, as he characteristically said:

– Full access for companies and all our fellow citizens to banking services. Without creating conditions of bank blockade, as is the case of the closure of shops in cities and countryside, even in areas that are difficult to access or sensitive at the national level.

– The essential support for the real economy and SMEs, with an emphasis on innovative entrepreneurship in cutting-edge sectors and the “green economy”.

– The resolution of the arrears of arrears, with transparency and social sensitivity, with the protection of the first home and national entrepreneurship.

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