Exciting story with a large Greek bank: foreclosure risk – breaking news

Banks: The future of Attica Bank is developing into an exciting story where there is no rescue solution!

New serious obstacles arise in the implementation of the capital strengthening and consolidation plan of Attica Bank, with the participation of the investment scheme Kaiminakis-Baku-Exarkos.

Potential strategic investors – who, upon completion of the project, will take control of the bank – have now set as a necessary condition for their participation a commitment from the other major shareholders (THS, TSMEDE), that after AMK there will be a merger with Pankritia Bank.

The “shipowners” declare that it is not enough for them to support Attica Bank now and control it in the next stage.

Their goal is to create a powerful scheme that will form the fifth pole in the Greek financial system. This can only be achieved if the Engineers Bank merges with Pankritaya and other cooperatives.

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

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

However, it creates severe uncertainty about the possibility of significant AMC coverage, which is a condition for the successful completion of the first phase of Attica Bank’s capital strengthening and restructuring plan.

Without 100 million shipowners, it would probably be impossible to cover AMK and it would be necessary to develop 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 Attica Bank’s time frames tighten.

Banks: An incredible move by the Eurobank – how its coffers were filled with the move… 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 amounts to 100% of Eurobank Direktna’s capital of €280 million and is in line with Eurobank’s strategy to channel capital into investments with higher return prospects (RoTBV) and strengthen its presence in the key markets in which it operates. Specifically in Greece, Bulgaria and Cyprus.

The deal is estimated to contribute about 50 basis points. to Eurobank Group’s CET 1 ratio (based on Q3 2022 ratios) reflecting the decrease in asset weighted assets.

The transaction is expected to be completed during 2023 and is subject to the required regulatory approvals.

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

It has 1,600 employees, a network of 98 stores, and a balance sheet of €2.4 billion.

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

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

Following international banking trends, AIK Banka achieves sustainable growth with a strong capital base by continuously investing in innovative solutions that it adapts to.
Customer needs.

UBS is acting as the exclusive financial advisor to Eurobank on the deal while BNP Paribas provides the fair and equitable valuation report.

Milbank LLP and Živkovic Samardžic Law Firm are acting as international and domestic legal advisors to the Seller, respectively.

Banks: A new era is coming for ATMs

Big changes are coming to ATMs, as they are changing radically from the way we knew them. All developments at xristika.gr…

The shrinkage of bank branches in recent years, as well as the number of their employees, subsequently leads to changes in ATMs as well, which bear the “burden” of the public’s transactions, especially in light of the pandemic.

As for the situation now prevailing in the banking system, the figures released by OTOE are typical:

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

But also in ATMs, which facilitate transactions, we had a decline, in proportion to the population, compared to the increase in the Eurozone over 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 (source of comparative data: European Banking Authority – EBA).

In the first stage, they will be friendlier and more…environmental!

Piraeus Bank is leading the way, reportedly becoming the first bank in the country to decide to install more than 300 Diebold Nixdorf DN SeriesTM ATMs on a large scale.

These ATMs, in addition to the new design, aim to significantly reduce energy consumption and carbon dioxide emissions during their lifespan.

ATMs with the new specified format are maintained and supported by DN’s innovative AllConnectSM Data Engine method, with the central idea of ​​interconnection, user-friendly integrated service provision and improved security.

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

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

It is expected that other Greek banks will gradually follow the same “logic” as Piraeus Bank.

Special measures will be taken regarding the security of transactions.

A significant increase has been recorded in recent years in bank budgets related to cybersecurity issues (amid increasing risks in cyberspace), while information says that in the coming period a large part of the banks’ budget will be directed to areas such as infrastructure security and cloud security.

Banks: Complaints from OTOE about disappearance of ATMs

Meanwhile, at the last conference, the President of the OTOE 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 Moutsios said, between 2018 and June 2021, total employment in credit institutions in Greece decreased by 21.2% (from 39,557 employees to 31,163 employees).

• By the end of 2020, the decline in bank employment in Greece was 16%, compared to a 2.4% decline in banks in the euro area.

• New financial sector services companies that have taken over the management of banks’ MEAs now employ more than 4,000 employees, of whom about 2,000 come from systemic banks.

• Between the end of 2018 and September 2021, 385 stores ceased operations, i.e. 19.4% of the network’s stores in the euro area. By the end of 2020, the decrease reached 12.21%. During the pandemic alone, 264 stores stopped operating.

• In our country in 2020, there was one bank employee for every 324 people, while in the euro area there was one employee for every 186 people.

• 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 per 2,888 inhabitants, and in Greece (with many so-called geographical peculiarities…) there was one branch per 6,298 inhabitants.

• But also in ATMs, which facilitate transactions, we have seen a decline, in proportion to the population, compared to the increase in the euro area over 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. (The source of comparative data is the European Banking Authority – EBA).

According to the OTOE President, “We have an excessive contraction of points of sale and an understaffing of the sector in Greece, compared to the sector that is undoubtedly more developed, in terms of digital banking, digital skills, infrastructure and transaction habits of the public, in the euro area.”

The OTOE sends a message to bank managements that “further downsizing of banks leads to reduced expectations of employees for their professional development and improvement of their situation, with all negative consequences.”

Regarding the recent positive results of banks, the restoration of their role in supporting development is still pending, according to Mr. Motsios’ assessment.

It remains suspended because it is assumed, as he distinctly said:

– Full access for businesses and all our citizens to banking services. Without creating conditions for a banking blockade, as is the case with the closure of shops in cities and rural areas, even in areas that are difficult to reach or nationally sensitive.

– Essential support to the real economy and SMEs, with a focus on innovative entrepreneurship in cutting-edge sectors and the “green economy”.

– Resolving the backlog of non-performing loans, with transparency and social sensitivity, while protecting the first home and local entrepreneurship.