Lloyd’s List
December 9, 2004
‘Big four’favour Euro-expansion
NATIONAL Bank of Greece, the country’s largest bank with total assets
of E58bn at the end of June 2004 and market shares of 19% and 30% in
domestic loans and deposits respectively, has the largest presence in
the Balkan area with exposure in Bulgaria, Romania and the Former
Yugoslav Republic of Macedonia, writes Philip Pangalos in Athens.
NBG, which aims to become a dominant regional player serving 60m
people in southeast Europe, also has the largest customer base in
Greece with a total of 6.5m clients and a 26% share of the mortgage
market.
NBG chief executive Takis Arapoglou has said that the bank will
continue to concentrate on southeastern Europe, with plans to grow
and expand through a combination of organic growth and acquisitions,
if they make sense.
Alpha, which is the second-largest bank in Greece with an 18% market
share, has made selective acquisitions in the Balkans and Cyprus,
which contribute about 10% to group earnings.
In the Balkans, Alpha has a presence in Albania, Romania, Bulgaria,
the Former Yugoslav Republic of Macedonia, as well as Serbia and
Montenegro.
EFG, Greece’s number three, despite only being established in 1990,
also has access to European markets through its strategic alliance
with Geneva-based EFG Bank Group. It plans to expand its presence in
the Balkans, where it has an exposure in Romania, Bulgaria and
Serbia.
Piraeus Bank has also expanded its overseas presence, mainly focused
in southeastern Europe, but also in London and New York.
Piraeus Bank has been particularly active in the Balkans and has
built up a presence in Romania with 10 local branches, while it has
another 13 branches in Bulgaria.
A joint venture with Tirana Bank in Albania gave it exposure to this
potentially important regional market through a 20-branch network.
Piraeus Bank’s Tirana Bank subsidiary, formed in 1996, was the first
Albanian bank owned by a private foreign institution and has an
ambitious branch network plan.
Despite its poverty and recent instability, Albania has caught the
interest of numerous Greek banks due to the country’s shared border,
an ethnic Greek minority in the neighbouring country and many
Albanians working in Greece and transferring funds home.
Emporiki Bank has also built up its overseas operations over the past
years and has a presence in the UK, as well as in Albania, Armenia,
Bulgaria, Georgia, Germany, Romania and Cyprus.