Piraeus Bank

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Piraeus Bank SA
Native name Τράπεζα Πειραιώς Α.Ε.
Type Anonymi Etairia
Traded as Athex: TPEIR
Industry Financial services
Founded (1916 (1916))[1]
Headquarters Athens, Greece
Number of locations 1,252 branches (Sept 2014)[2]
Area served
Key people
Products Retail,commercial banking, private, investment and asset management
Revenue Decrease €1.926 billion (Q3 2014)
Operating income Decrease €591 million (Q3 2014)
Profit Decrease-€1.558 billion (Q3 2014)
Total assets Decrease €86.40 billion (Q3 2014)
Total equity Decrease €7.80 billion (Q3 2014)
Owners Petroventure Limited Holdings S.A.(Vardinogiannis group of companies 19,7%), German PPF group 19,7%
Employees
  • Decrease26,260 (2014)
[4]
Subsidiaries
Website piraeusbank.gr

Piraeus Bank is a Greek multinational financial services company with its headquarters in Athens, Greece.[5] and has a market capitalization of Euro 5.8 billion in December 2014. Founded in 1916, Piraeus Bank operated as a private credit institution for many decades, while for the period 1975-1991 it went through state ownership and management before it was privatized in December 1991. Since then, it has rapidly grown in size and activities. It operates in Greece, Frankfurt and London through a branch network of 960 stores. Its banking subsidiaries operate in 7 countries, namely Albania, Bulgaria, Cyprus, Egypt, Romania, Serbia, Ukraine. Geniki Bank is also a subsidiary of Piraeus Bank, operating in Greece. As of September 2013, it is the leading bank in Greece, by assets and liabilities with a 30% market share in loans and 29% in deposits.[6] Piraeus Bank's stocks are listed in the Athens Stock Exchange (ATHEX) since January 1918.[7]

Today following the acquisitions of the “good” ATEbank and of Geniki Bank, the banking operations in Greece of Bank of Cyprus, Cyprus Popular Bank and Hellenic Bank and the acquisition of Millennium Bank (Greece), the combined total assets of the Group amounted to €86.4 bn, gross loans €72.7 bn and customer deposits €55 bn (data 30/09/14). The Group employs 24,495 people, while the entire branch network numbers 1,252 units, with a presence in 10 countries including Greece. Piraeus Bank is today the leading Bank in Greece, in terms of assets and liabilities, with 30% market share in terms of loans and 29% in terms of deposits. In terms of market capitalisation and total assets it is the second largest bank.

Along with its organic growth during the decades of 1990 and 2000, Piraeus Bank made a series of strategic moves aiming to establish a strong presence in the domestic market. Thus, in 1998, the Bank absorbed the activities of Chase Manhattan in Greece, took over controlling interest in Macedonia-Thrace Bank and acquired the specialised bank Credit Lyonnais Hellas. At the beginning of 1999, the Bank acquired Xiosbank and absorbed the activities of National Westminster Bank Plc in Greece. In June 2000, Piraeus Bank absorbed its two commercial banks in Greece (Macedonia-Thrace Bank and Xiosbank). In 2002, Piraeus Bank acquired the Hellenic Industrial Development Bank (ETBAbank) which was absorbed in December 2003. Petroventure limited Holdings S.A. controls a (19.7)% of Piraeus Bank which belongs to the Vardinogiannis group of companies.German PPF Group controls also a (19.7)%,and Aggelopoulos family (9.1)%.The remaining percentage is listed on the stock market.

Activities[edit]

Piraeus Bank is a universal bank providing various banking services.

Historically a bank supportive of SMEs it now also possesses particular know-how in the areas of agricultural banking, consumer and mortgage credit, green banking, capital markets, investment banking, leasing and electronic banking.[7]

Piraeus Bank Group[edit]

Piraeus Bank and its subsidiaries form the Piraeus Bank Group.[8]

History[edit]

The historic building in Athens
Building in Odessa, Ukraine

A group of shipowners in Piraeus founded Banque du Pirée (Piraeus Bank; BP) in 1916 to finance trade. The Greek government bought the bank in 1975 and transformed it into a universal bank. The new headquarters designed by Sir Basil Spence were built at the Stadiou Street in Athens. In December 1991 the government privatised the bank, which has grown in size and scope since then.

Expansion[edit]

In 1995 the Group established Piraeus Bank Romania with 160 branches and one year later Tirana Bank, the first privately owned banking institution in Albania with 56 branches. In 1999 with its acquisition of Xiosbank, PB took over Xios's branch in Sofia, Bulgaria; it has now some 83 branches in the country. PB also acquired the small New York-based Marathon National Bank and Interbank N.Y; it merged Interbank into Marathon Bank.

In 1998 the bank absorbed the Greek branch networks of Chase Manhattan Bank, Crédit Lyonnais, and acquired controlling interest of Macedonia-Thrace Bank. A year later it added in the activities of National Westminster Bank and acquired Xiosbank (Bank of Chios) which it totally absorbed along with Macedonia-Thrace Bank. In 2002 Piraeus Bank signed a strategic alliance with ING Group (bancassurance). In 2005 it acquired the Bulgarian Eurobank, Atlas Bank in Serbia, Egyptian Commercial Bank in Egypt. In 2007 it expanded in Ukraine by acquiring the International Commerce Bank (renamed as Piraeus Bank ICB) and established Piraeus Bank Cyprus with the acquisition of Arab Bank Cyprus.

In 2002 the bank absorbed 58% of ETBA Bank (Hellenic Industrial Development Bank). PB also started a strategic alliance with ING Group, which took a 5% stake in the Piraeus Bank. In 2006 the PB sold back to ING its stake in a jointly-owned mutual funds company. Cooperation continues via the bank-assurance company ING-PIRAEUS.

In 2005 Piraeus Bank acquired the Belgrade-based Atlas banka in Serbia (today Piraeus Bank Beograd with 42 branches), and the Egyptian Commercial Bank (today Piraeus Bank Egypt with 43).

In 2007 PB purchased the Cyprus arm of Arab Bank and renamed it Piraeus Bank (Cyprus).[9] On 13 September 2007 Piraeus Bank completed its acquisition of 99.6% of the share capital of International Commercial Bank in Ukraine, today Piraeus ICB.

In June 2012 PB signed an agreement with Investors Bancorp Inc, to transfer PB's shareholding in Marathon Banking Corporation in New York City, to Investors Bancorp. PB used the money it received for Marathon to finance the take over of the Greek banks Geniki Bank and healthy parts of ATEbank.

In 2012 Piraeus Bank acquired the so-called 'good' Agricultural Bank (selected assets and liabilities) gaining a leading position in the Greek banking sector. Three months later it acquired Societe Generale's Geniki Bank.

On 26 March 2013 it took over the Greek branches of Bank of Cyprus, the Greek branches of Hellenic Bank and CPB Bank. Later in 2013 it took over Millennium Bank (Greece).

At the end of June 2013 Piraeus Bank Group had an international presence consisting of 438 branches focusing in Southeastern Europe and the Eastern Mediterranean.[7]

Faced with a probe by the European Commission over government bailouts following the GFC, and their impact on competition in the banking sector in Greece, in July 2014 it was found the bank had not been given a competitive advantage, and restructuring plans for the bank were approved.[10]

Other activities[edit]

Piraeus Bank reached an agreement in 2007 to acquire 100% of Avis Rent-A-Car Hellas for €25.5 mln. Brokers[who?] said that this purchase will create synergies for the group leasing subsidiary, Piraeus Leasing, by adding a car fleet valued at €200 mln to its long-term leasing business.

The Piraeus Bank Group Cultural Foundation carries out culture-related activities of the bank, which are part of the corporate social responsibility. The historical archive is curated by the foundation. In 2012 the foundation won the European Europa-Nostra-Award.

Awards[edit]

  • 2004 “Straight Through Processing Excellence Award"
  • 2004 The European banking technology award
  • 2005-2006 Successive awards from Deutche Bank: "2004 Euro STP Excellence Award" in 2005 & "2005 EUR Straight-Through Processing (STP) Excellence Award" in 2006.
  • “Best performance in Custody for the domestic market for the years 2005-6 (Most Improved Custodian in Greece 2005-6)” distinction from the international magazine "Money Markets”.
  • 2007 European prize “Recognized for Excellence in Europe - 4 stars” by the international non-profit organization EFQM.
  • 2007 JP Morgan Elite Quality Recognition Award
  • 2008 “Windows in Financial Services Developer Award 2008” during the “6th Annual Microsoft Financial Services Conference” in New York.
  • 2008, 2009 gold award by the international Corporate Responsibility Index (CRI)
  • 2012 Double STP Excellence Award

See also[edit]

References[edit]

  1. ^ "Brief Corporate Profile". Retrieved 3 May 2013. 
  2. ^ "Piraeus Bank Group 9 month results 2014". piraeusbankgroup.com. Retrieved 3 December 2014. 
  3. ^ "Change in the composition of the Board of Directors". Retrieved 3 December 2013. 
  4. ^ "9month results2014". Retrieved 3 Dec 2014. 
  5. ^ "TPEIR Profile & Executives - Piraeus Bank SA - Bloomberg". bloomberg.com. Retrieved 28 November 2012. 
  6. ^ "PIRAEUS BANK GROUP – 9ΜΟΝΤΗ 2013 RESULTS". Retrieved 1 December 2013. 
  7. ^ a b c http://www.piraeusbankgroup.com/en/group-profile/brief-profile
  8. ^ "General information about the Group". Retrieved 25 November 2013. 
  9. ^ "Greek Bank of Piraeus to buy Arab Bank network in Cyprus for 15 mln eur". Hemscott. 10 December 2007. Retrieved 2007-12-11. 
  10. ^ "Restructuring of two Greek banks approved by EU". Greek Herald. Retrieved 23 July 2014.