DOCSLIB.ORG

To the Challenges of a New Era

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
To the Challenges of a New Era Open to the challenges of a new era ANNUAL REPORT2006 WorldReginfo - 9eefdb0a-d062-4b3b-b28d-bb9fee2e478a LONDON • One branch LUXEMBOURG • Presence through subsidiaries BULGARIA • 281 Branches • 287 Total points of presence • Loans of €1.5 bn. ROMANIA • 189 Branches • 201 Total points of presence • Loans of €1.7 bn. SERBIA • 103 Branches • 108 Total points of presence • Loans of €0.4 bn. WorldReginfo - 9eefdb0a-d062-4b3b-b28d-bb9fee2e478a POLAND POLAND • 70 Branches • 130 Total points of presence UKRAINE • Loans of €0.2 bn. ROMANIA UKRAINE • Universal Bank UKRAINE • 33 Branches SERBIA BULGARIA TURKEY GREECE TURKEY 31 Branches GREECE • 367 Branches • 520 Total points of presence • Loans of €31.1 bn. WorldReginfo - 9eefdb0a-d062-4b3b-b28d-bb9fee2e478a WorldReginfo - 9eefdb0a-d062-4b3b-b28d-bb9fee2e478a CONTENTS THE YEAR IN REVIEW 4 Members of the Strategic Planning Committee and the Executive Committee Financial Highlights Review Letter to Shareholders Financial Review The Eurobank EFG Share RETAIL BANKING 21 Retail Banking Service Networks Consumer Lending Mortgage Lending Small Business Banking CORPORATE BANKING 27 Lending to Large Corporates Lending to Medium-Sized Enterprises Shipping Leasing Factoring INVESTMENT BANKING & CAPITAL MARKETS 33 Investment Banking Equity Brokerage Treasury WEALTH MANAGEMENT 36 Mutual Funds Insurance Asset Management Private Banking INTERNATIONAL PRESENCE 40 Bulgaria Romania Serbia Poland Turkey Ukraine OTHER ACTIVITIES OF THE GROUP 46 Securities Services Payment Services Payroll Services Real Estate E-Commerce e-Banking and Internet Services RISK MANAGEMENT 48 CORPORATE GOVERNANCE 52 APPENDICES 55 Consolidated Financial Statements 2006 Eurobank EFG Group and EFG Group ANNUAL REPORT 2006 3 WorldReginfo - 9eefdb0a-d062-4b3b-b28d-bb9fee2e478a Members of the Strategic Planning Committee and the Executive Committee Xenophon C. Nickitas * George C. Gondicas* Chairman of the Board Honorary Chairman of the Board Byron N. Ballis Nicholas C. Nanopoulos Nikolaos B. Karamouzis Deputy Chief Executive Officer - Chief Executive Officer and Deputy Chief Executive Officer - Retail Banking and Board Board Member Wholesale Banking and Board Member Member Paula N. Hadjisotiriou General Manager-Finance & Strategy and Board Secretary * Strategic Planning Committee Members only. 4 WorldReginfo - 9eefdb0a-d062-4b3b-b28d-bb9fee2e478a Members of the Executive Committee Fokion Chr. Karavias Evaggelos I. Kavvalos General Manager – Global General Manager – Small Business Markets Banking Harry M. Kyrkos George P. Marinos Nicholas K. Pavlides General Manager – Risk General Manager – Corporate General Manager – Operations, Management and Board Member Banking Technology & Organization and Board Member P.Giorgio Pradelli Michael G. Vlastarakis General Manager – International General Manager – Branch Division Network ANNUAL REPORT 2006 5 WorldReginfo - 9eefdb0a-d062-4b3b-b28d-bb9fee2e478a THE YEAR IN REVIEW Financial Highlights Net Profit (g m.) Loan Growth in 2006 645 28.6% 27.5% 20.8% 501 19.7% 2005 2006* Group Loans in Greek Loans Greece Market *excluding one - off reserves tax Eurobank EFG RoE After Tax and Minorities Dividend per Share (g) 23% 0.92 23% 0.75 21.1% 2005 2006 2005 2006 6 WorldReginfo - 9eefdb0a-d062-4b3b-b28d-bb9fee2e478a THE YEAR IN REVIEW Consolidated Figures of Eurobank EFG (Amounts in € million) 2006 2005 % Change BALANCE SHEET Loans and Advances to Customers 34,907 27,385 27.5% Deposits 23,914 19,255 24.2% Total Shareholders' Equity 2,657 2,523 5.3% Total Assets 53,820 44,464 21.0% PROFIT AND LOSS Net Interest Income 1,597 1,372 16.4% Net Banking Fee and Comission Income 447 355 26.0% Non-Banking Fee and Commission Income 58 66 (12.5%) Core Income1 2,101 1,792 17.2% Total Operating Income 2,234 1,861 20.0% Total Operating Expenses 1,062 891 19.2% Impairment Losses on Loans and Advances 344 309 11.5% Core Profit2 695 592 17.3% Profit before Tax after Minority Interest 825 672 22.9% Net Profit for the Year attributable to Shareholders 601 501 20.0% Net Profit3 645 501 28.6% 1. Net Interest Income + Total Net Fee and Commission Income 2. Core Income - Operating Expenses - Provisions 3. Excluding one - off reserves tax 2006 2005 FINANCIAL RATIOS Net Interest Margin 3.3% 3.5% Cost / Income 47.5% 47.9% Non Performing Loans 2.8% 3.0% Coverage 89.3% 92.0% Provisions / Loans 1.1% 1.3% Tier I 8.5% 10.9% Total Capital Adequacy 10.4% 13.5% Return on Assets (after tax)3 1.33% 1.30% Return on Equity (after tax) 3 23.0% 21.1% DATA PER SHARE Earnings per Share (h)3 1.59 1.29 Dividend per Share(h) 0.92 0.75 Dividend Yield 3.7% 3.5% (based on average share price) INFRASTRUCTURE DATA Total points of presence 1,312 868 Greece 520 467 New Europe 790 399 Luxembourg 1 1 London 1 1 Human Resources 17,866 16,201 Greece 9,701 9,117 New Europe 8,165 7,084 Ratings Long-Term Financial Strength Short Term Moody's A2 C+ P-1 Standard & Poor's A- - A-2 FITCH A B-2 F1 ANNUAL REPORT 2006 7 WorldReginfo - 9eefdb0a-d062-4b3b-b28d-bb9fee2e478a Review Romania of the Year APRIL The Annual General Meeting of the Bank’s shareholders approved the distribution of a total dividend of €286 million for FEBRUARY the fiscal year 2005, as well as the free distribution Entered the Polish market of 2 new shares for every 10 shares held. through the opening of the first branches of Polbank EFG in Warsaw. Eurobank Properties was successfully listed in the By year-end this organic network comprised Athens Stock Exchange. 130 branches and points-of-sale. M A Y Entered the Turkish banking market, through an agreement to acquire 70% of Tekfenbank. Tekfenbank is a medium-sized bank with a network of 31 branches, mainly focused on small and medium-sized enterprises. M ARCH Following the conclusion of an agreement with the Serbian government, Eurobank EFG acquired 100% of Nacionalna Š tedionica Banka, finalizing a process JUNE that began in September 2005. Eurobank EFG successfully completed its third securitization of mortgage loans through the issue and placement of a €1 bn bond loan in international markets. There had been two similar issues in 2004 and 2005, worth €750 each. 8 WorldReginfo - 9eefdb0a-d062-4b3b-b28d-bb9fee2e478a Bulgaria Serbia Poland JUL Y OCT O BER Entered the banking market of Ukraine, Eurobank EFG successfully issued through an agreement to acquire 99.34% of a bond loan from the partial securitization of its Small Universal Bank. This is a medium sized bank Business lending portfolio, worth €2.25 bn, the first with 33 branches, which uses multiple distribution such venture ever undertaken by a Greek bank. networks and offers a wide range of retail and corporate banking products. Its activities are concentrated in the western Ukraine and Kiev. NOVEMBER Bancpost, the Romanian subsidiary of Eurobank EFG, celebrated the 15th anniversary of its establishment by organizing a grand event for its employees, its clients, the Romanian authorities and the media, featuring the former German Chancellor, Mr. Gerhard Schroeder, as the main speaker. S EPTEMBER Agreement for the acquisition of a 74.26% stake in Bulgaria’s DZI Bank. DZI Bank is listed in the Bulgarian Stock Exchange and operates a network of 131 branches and 43 micro-branches. Its forthcoming merger with Postbank - a Eurobank DEC EMBER EFG subsidiary - is designed to place the Group Eurobank EFG was ranked the best Private Banking among the leaders of the Bulgarian banking market. services provider in Greece by the internationally Upon completion of the deal in December 2006 acclaimed financial magazine, Euromoney, for a third Eurobank EFG increased its stake to more than 90%. consecutive year. ANNUAL REPORT 2006 9 WorldReginfo - 9eefdb0a-d062-4b3b-b28d-bb9fee2e478a Letter to Shareholders Dear Shareholders, The year 2006 was a positive one for the Greek As far as our Banking Group is concerned, 2006 was economy, which grew at a sturdy rate of 4.2%, a year of dynamic growth, both in Greece, and in the significantly outpacing the Eurozone average. region of New Europe, featuring excellent results in all Moreover, there was also significant progress in the fields of banking operations, sound profitability, and fiscal adjustment front, as the deficit was reduced new international distinctions. Presently, Eurobank below the 3% threshold set by the Stability and EFG is an international Group with more than 1,300 Growth Pact. Nevertheless, Greece is expected to branches and points-of-sale in Greece and abroad. deal with an increasingly competitive global Our domestic and overseas workforce comprises environment. The deterioration of our country’s almost 19,000 people. current account in recent years, as the deficit reached 12.1% of GDP in 2006, stresses our economy’s As far as the domestic market is concerned, in 2006 reduced competitiveness. Thus, the economy’s our Group demonstrated once more its ability to further structural reform becomes a top priority, in sustain high growth rates in all fields of banking order to ensure high growth rates in the future, as operation, and to evolve faster than its competitors. A well as real convergence, competitiveness gains and clear proof of that is that, in recent years, the growth reduced unemployment. However, the dynamism of our loans is constantly outperforming the market already built up by the private sector in Greece and average, reaffirming both our leadership and our abroad, creates a positive backdrop. This dynamism capability to keep on capturing market share. should be further reinforced through wider reforms, centered on the rationalization of the state’s role In New Europe we continue our dynamic expansion, within the economy, and the creation of an appealing having invested funds of more than €1 billion to date. environment, designed to support private initiative and Our aim is to become a regional power that will play a entrepreneurship, and attract new investments.
Load more

Recommended publications
  • Amcham Body 69V4.Qxd
    issue 69 may 2006 Bulgaria, United States Sign on Joint Training Facilities ■ IMF Performance Review Completed With Three Waivers ■ AmCham and Symix Host an Award Ceremony ■ Maritsa Forum Mulls Infrastructure, Industrial Zones and Support of SMEs ■ Member News ■ New Members NATO IN SOFIA: An April Walk Through a Global Agenda American Chamber of Commerce in Bulgaria Business Park Sofia, Mladost 4 Area, Building 2, Floor 6, 1715 Sofia Tel.: (359 2) 9769 565 Fax: (359 2) 9769 569 homepage: www.amcham.bg e-mail: [email protected] editorial Dear Readers: Each of us has a personal interpretation of the beneficial corollaries for Bulgaria from the just-concluded NATO meeting in Sofia (please read in-depth analyses by Boyko Vassilev and Panayot Angarev on pp. 4-14). Most of you, too, have a position on whether Bulgaria and Romania's EU entry will be delayed by a year. Neither I, nor any other journalist can answer this question definitively at this time (for details, see Yuliana Boncheva's article on p. 22.) NATO and the European Union have been subjects of numerous articles in our publica- tion, among others. So I would rather switch your attention toward another topic now. Namely, it is the story by Chris Warde-Jones in the New York Times on Sofia as a tourist destination, which was published in the newspaper of record in early May. (We present it for you on p. 44.) This travel feature offers a refreshing view of the Bulgarian capital, written by someone who was impressed by images of the city that are, generally speaking, flattering.
    [Show full text]
  • CAYMAN ISLANDS) LIMITED (Incorporated with Limited Liability in the Cayman Islands) As Issuer and EFG EUROBANK ERGASIAS S.A
    – 6:46 pm – mac5 – 3485 Intro : 3485 Intro Prospectus EFG HELLAS PLC (incorporated with limited liability in England and Wales) as Issuer and EFG HELLAS (CAYMAN ISLANDS) LIMITED (incorporated with limited liability in the Cayman Islands) as Issuer and EFG EUROBANK ERGASIAS S.A. (incorporated with limited liability in the Hellenic Republic) as Guarantor €15,000,000,000 Programme for the Issuance of Debt Instruments Under this €15,000,000,000 Programme for the Issuance of Debt Instruments (the “Programme”), each of EFG Hellas PLC and EFG Hellas (Cayman Islands) Limited (each an “Issuer” and, together, the “Issuers”) may from time to time issue debt instruments (“Instruments”) guaranteed by EFG Eurobank Ergasias S.A. (the “Guarantor” or the “Bank”) and denominated in any currency agreed between the relevant Issuer and the relevant Dealer (as defined herein). Application has been made to the Commission de Surveillance du Secteur Financier (the “CSSF”) in its capacity as competent authority under the Luxembourg Act dated 10 July 2005 on prospectuses for securities to approve this document as a base prospectus. Application has also been made to the Luxembourg Stock Exchange for Instruments issued under the Programme to be admitted to trading on the Luxembourg Stock Exchange's regulated market and to be listed on the Official List of the Luxembourg Stock Exchange. References in this Prospectus to Instruments which are intended to be “listed” (and all related references) on the Luxembourg Stock Exchange shall mean that such Instruments have been admitted to trading on the Luxembourg Stock Exchange’s regulated market and have been listed on the Official List of the Luxembourg Stock Exchange.
    [Show full text]
  • The Competition Council Has Authorized the Merger Between ALPHA BANK AE and EFG EFG EUROBANK ERGASIAS SA
    The Competition Council has authorized the merger between ALPHA BANK AE and EFG EFG EUROBANK ERGASIAS SA The Competition Council has authorized the economic concentration consisting in merger by absorbtion of EFG Eurobank Ergasias SA by Alpha Bank AE. The analysis of the competition authority found that the notified economic concentration does not raise significant obstacles to effective competition on the Romanian market, respectively does not lead to the creation or strengthening of a dominant position of the merged company to have as effect restriction, prevention or significant distortion of competition on the Romanian market or on a part of it. Since both Alpha Bank AE and EFG Eurobank Ergasias SA hold in Greece more than 2/3 of turnover at European level, there is no obligation this merger to be notified to the European Commission. Community legislation provides that where each of the companies involved achieves more than 2/3 of total turnover in one of member states, the operation is analyzed by the competition authority of respective state as well as by each of the states where the involved parties activate. The merged company shall be called Alpha Eurobank SA. Alpha Bank AE is a company that is part of Alpha group, one of the most important banking and financial services groups in Greece. Alpha Group offers a wide range of services including retail banking, corporate banking, asset management, private sector banking, distribution of insurance products, investment banking, leasing, factoring, management of brokerage services and of estate assets, and brokerage services. In Romania, Alpha group holds control over Alpha Bank Romania S.A., Alpha Leasing Romania IFN S.A., SSIF Alpha Finance Romania S.A., Alpha Insurance Brokers S.R.L., Alpha Astika Akinita Romania S.R.L.
    [Show full text]
  • School of Economics & Business Administration Master of Science in Management “MERGERS and ACQUISITIONS in the GREEK BANKI
    School of Economics & Business Administration Master of Science in Management “MERGERS AND ACQUISITIONS IN THE GREEK BANKING SECTOR.” Panolis Dimitrios 1102100134 Teti Kondyliana Iliana 1102100002 30th September 2010 Acknowledgements We would like to thank our families for their continuous economic and psychological support and our colleagues in EFG Eurobank Ergasias Bank and Marfin Egnatia Bank for their noteworthy contribution to our research. Last but not least, we would like to thank our academic advisor Dr. Lida Kyrgidou, for her significant assistance and contribution. Panolis Dimitrios Teti Kondyliana Iliana ii Abstract M&As is a phenomenon that first appeared in the beginning of the 20th century, increased during the first decade of the 21st century and is expected to expand in the foreseeable future. The current global crisis is one of the most determining factors affecting M&As‟ expansion. The scope of this dissertation is to examine the M&As that occurred in the Greek banking context, focusing primarily on the managerial dimension associated with the phenomenon, taking employees‟ perspective with regard to M&As into consideration. Two of the largest banks in Greece, EFG EUROBANK ERGASIAS and MARFIN EGNATIA BANK, which have both experienced M&As, serve as the platform for the current study. Our results generate important theoretical and managerial implications and contribute to the applicability of the phenomenon, while providing insight with regard to M&As‟ future within the next years. Keywords: Mergers &Acquisitions, Greek banking sector iii Contents 1. Introduction ................................................................................................................ 1 2. Literature Review .......................................................................................................... 4 2.1 Streams of Research in M&As ................................................................................ 4 2.1.1 The Effect of M&As on banks‟ performance ..................................................
    [Show full text]
  • EUROBANK ERGASIAS S.A. €5 Billion Global Covered Bond
    BASE PROSPECTUS EUROBANK ERGASIAS S.A. (incorporated with limited liability in the Hellenic Republic with registration number 000223001000) €5 billion Global Covered Bond Programme Under this €5 billion global covered bond programme (the Programme), Eurobank Ergasias S.A. (the Issuer) (formerly known as EFG Eurobank Ergasias S.A., which changed its name to Eurobank Ergasias S.A. on 2 August 2012) may from time to time issue bonds (the Covered Bonds) denominated in any currency agreed between the Issuer and the relevant Dealer(s) (as defined below). Application has been made to the Commission de Surveillance du Secteur Financier (the CSSF) in its capacity as competent authority under the Luxembourg Act dated 10 July 2005 on prospectuses for securities (as amended) (the Prospectus Act 2005) to approve this document as a base prospectus (the Base Prospectus). By approving this base prospectus, the CSSF does not give any undertaking as to the economic and financial soundness of the operation or the quality or solvency of the Issuer in accordance with Article 7(7) of the Prospectus Act 2005. Application has also been made to the Luxembourg Stock Exchange for Covered Bonds issued under the Programme to be admitted to trading on the Luxembourg Stock Exchange’s regulated market and to be listed on the official list of the Luxembourg Stock Exchange (the Official List). This document comprises a base prospectus for the purposes of Article 5.4 of Directive 2003/71/EC as amended (which includes amendments made by Directive 2010/73/EU to the extent that such amendments have been implemented in a relevant Member State of the European Economic Area) (the Prospectus Directive) but is not a base prospectus for the purposes of Section 12(a)(2) or any other provision of or rule under the United States Securities Act of 1933 (as amended) (the Securities Act).
    [Show full text]
  • Financial Sectors in EU Accession Countries
    Financial Sectors in EU Accession Countries EUROPEAN CENTRAL BANK EUROPEAN Financial Sectors in EU Accession Countries Financial Sectors in EU Financial Sectors in EU Accession Countries Editor: Christian Thimann Published by: © European Central Bank, July 2002 Address Kaiserstrasse 29 60311 Frankfurt am Main Germany Postal address Postfach 16 03 19 60066 Frankfurt am Main Germany Telephone +49 69 1344 0 Internet http://www.ecb.int Fax +49 69 1344 6000 Telex 411 144 ecb d Copies of the individual articles can also be downloaded from the ECB’s website. The views expressed in this publication are those of the authors and not necessarily those of the ECB. No responsibility for them should be attributed to the ECB or to any of the other institutions with which the authors are affiliated. All rights reserved by the authors. Editor: Christian Thimann Typeset and printed by: Kern & Birner GmbH + Co. ISBN 92-9181-292-7 Table of Contents Foreword “The importance of financial sector developments in EU accession countries” T. Padoa-Schioppa (European Central Bank) .....................................................................005 Summary “Financial sectors in EU accession countries: Issues for the workshop and summary of the discussion” C. Thimann (European Central Bank) ................................................................................007 “Key features of the financial sectors in EU accession countries” G. Caviglia, G. Krause and C. Thimann (European Central Bank) ...................................015 “The financial sector in Bulgaria: structure, functioning and trends” V. Yotzov (Bulgarian National Bank) .................................................................................031 “The financial sector in Cyprus: structure, performance and main developments” L. Georgiadou (Central Bank of Cyprus) ...........................................................................051 “The financial sector in the Czech Republic: an assessment of its current state of development and functioning” P.
    [Show full text]
  • Updated As of 01/06/2017 Changes Highlighted in Yellow
    NEW QUARTER TOTAL PDship per Previous Quarter Firm Legal Entity Holding Dealership AT BE BG CZ DE DK ES FI FR GR HU IE IT LV LT NL PL PT RO SE SI SK UK Current Quarter Changes Bank March 2016) ABLV Bank ABLV Bank, AS 1 bank customer bank customer 0 Abanka Vipa Abanka Vipa d.d. 1 bank customer bank customer 0 ABN Amro ABN Amro Bank N.V. 3 bank inter dealer bank inter dealer 0 Alpha Bank Alpha Bank S.A. 1 bank customer bank customer 0 Allianz Group Allianz Bank Bulgaria AD 1 bank customer bank customer 0 Banca IMI Banca IMI S.p.A. 3 bank inter dealer bank inter dealer 0 Banca Transilvania Banca Transilvania 1 bank customer bank customer 0 Banco BPI Banco BPI + 1 bank customer bank customer 0 Banco Comercial Português Millenniumbcp + 1 bank customer bank customer 0 Banco Cooperativo Español Banco Cooperativo Español S.A. + 1 bank customer bank customer 0 Banco Santander S.A. + Banco Santander / Santander Group Santander Global Banking & Markets UK 6 bank inter dealer bank inter dealer 0 Bank Zachodni WBK S.A. Bank Millennium Bank Millennium S.A. 1 bank customer bank customer 0 Bankhaus Lampe Bankhaus Lampe KG 1 bank customer bank customer 0 Bankia Bankia S.A.U. 1 bank customer bank customer 0 Bankinter Bankinter S.A. 1 bank customer bank customer 0 Bank of America Merrill Lynch Merrill Lynch International 9 bank inter dealer bank inter dealer 0 Barclays Barclays Bank PLC + 17 bank inter dealer bank inter dealer 0 Bayerische Landesbank Bayerische Landesbank 1 bank customer bank customer 0 BAWAG P.S.K.
    [Show full text]
  • Eurobank EFG Cyprus Ltd Report and Financial Statements for the Year
    Eurobank EFG Cyprus Ltd Report and financial statements for the year ended 31 December 2009 Contents Page Board of Directors and other officers 1 Report of the Board of Directors 2 – 4 Independent Auditor’s Report 5 – 6 Income statement 7 Statement of comprehensive income 8 Balance sheet 9 Statement of changes in equity 10 Statement of cash flows 11 Summary of significant accounting policies and 12 – 70 notes to the financial statements Additional information to the financial statements 71 Eurobank EFG Cyprus Ltd Board of Directors and other officers Board of Directors N. Karamouzis Chairman M. Zampelas Vice Chairman, Non Executive M. Louis Executive D. Shacallis Executive M. Colakides Non Executive P. Hadjisotiriou Non Executive K. Morianos Non Executive K. Vasiliou Non Executive D. Hadjiargyrou Non Executive V. Nicolaides Non Executive C. Papaellinas Non Executive C. Zachariou Non Executive Executive Committee Michalis Louis Demetris Shacallis Charalambos Hambakis Achilleas Malliotis Andreas Petsas Antonis Antoniou Stefanos Kassianides Company Secretary D. Shacallis Registered office 41 Arch. Makariou Avenue 5th floor CY-1065 Nicosia Cyprus EFGH CYP 2009 FS. (1) Eurobank EFG Cyprus Ltd Report of the Board of Directors The Board of Directors presents its report together with the audited financial statements of Eurobank EFG Cyprus Ltd (the “Bank”) for the year ended 31 December 2009. Principal activity Eurobank EFG Cyprus Ltd was incorporated on 21 December 2007 and remained dormant until the date of transfer of assets and activities of EFG Eurobank Ergasias S.A. – Cyprus Branch which took place on 26 March 2008. The transfer of assets and activities was effected following the permit granted by the Central Bank of Cyprus dated 11 March 2008 to carry out banking services through the operation of a Cyprus subsidiary company and in accordance with the Transfer of Banking Business and Securities Law 64 (I)/1997, as amended (the “Transfer Law’) N 118(I)/2002 (as amended) articles 26-30.
    [Show full text]
  • Systemic Stress Test Model for Shared Portfolio Networks Irena Vodenska1,2*, Nima Dehmamy3, Alexander P
    www.nature.com/scientificreports OPEN Systemic stress test model for shared portfolio networks Irena Vodenska1,2*, Nima Dehmamy3, Alexander P. Becker1,2, Sergey V. Buldyrev4 & Shlomo Havlin5 We propose a dynamic model for systemic risk using a bipartite network of banks and assets in which the weight of links and node attributes vary over time. Using market data and bank asset holdings, we are able to estimate a single parameter as an indicator of the stability of the fnancial system. We apply the model to the European sovereign debt crisis and observe that the results closely match real-world events (e.g., the high risk of Greek sovereign bonds and the distress of Greek banks). Our model could become complementary to existing stress tests, incorporating the contribution of interconnectivity of the banks to systemic risk in time-dependent networks. Additionally, we propose an institutional systemic importance ranking, BankRank, for the fnancial institutions analyzed in this study to assess the contribution of individual banks to the overall systemic risk. Recent fnancial crises have motivated the scientifc community to seek new interdisciplinary approaches to modeling the dynamics of global economic systems. Following seminal papers by Allen and Gale 1,2, a number of empirical studies have attempted to estimate the risk of contagion in fnancial systems: the UK interbank market 3, the German interbank market4, or the Austrian interbank market5, to name a few. Other works6,7 turned their attention to the impact of leverage and liquidity risk on contagion. While many of the existing economic models include noise and fuctuations, they assume a representative economic agent or use market data to infer interde- pendencies among fnancial institutions.
    [Show full text]
  • Efg Eurobank Ergasias S.A
    GR030 OK 0 0 0 1. CAPITAL Period 0 0 0 0 GR030 EUROBANK ERGASIAS S.A. 31/12/2012 30/6/2013 Capital position CRD3 rules References to COREP reporting Million EUR % RWA Million EUR % RWA A) Common equity before deductions (Original own funds without hybrid instruments and government COREP CA 1.1 without Hybrid instruments and government support measures other 3.499 3.656 support measures other than ordinary shares) (+) than ordinary shares Of which: adjustment to valuation differences in other AFS assets (1) (-/+) 26 18 Prudential filters for regulatory capital (COREP line 1.1.2.6.06) B) Deductions from common equity (Elements deducted from original own funds) (-) -348 -326 COREP CA 1.3.T1* (negative amount) As defined by Article 57 (q) of Directive 2006/48/EC (COREP line 1.3.8 included in Of which: IRB provision shortfall and IRB equity expected loss amounts (before tax) (-) -285 -342 1.3.T1*) C) Common equity (A+B) 3.151 8,3% 3.330 9,6% Of which: ordinary shares subscribed by government 0 0 Paid up ordinary shares subscribed by government D) CoCos issued before 30 June 2012 according to EBA Common Term Sheet (+) 0 0 EBA/REC/2011/1 E) Other Existing government support measures (+) 950 950 F) Core Tier 1 including other intruments eligible and existing government support measures (C+D+E) 4.101 10,8% 4.280 12,4% Net amount included in T1 own funds (COREP line 1.1.4.1a + COREP lines from G) Hybrid instruments not subscribed by government 367 77 1.1.2.2***01 to 1.1.2.2***05 + COREP line 1.1.5.2a (negative amount)) not subscribed by government
    [Show full text]
  • Signatories to the Principles for Responsible Banking
    Signatories to the Principles for Responsible Banking Last updated: 03.12.2020 REMOVAL FROM THE FIRST FIRST END OF 4 YEAR WITHDRAWAL DATE REPORTING SIGNATORIES # SIGNATORY BANKS COUNTRY REPORTING CONTACT DETAILS REPORTING IMPLEMENTATION FROM SIGNED LINK LIST BY THE DUE PUBLISHED PERIOD INITIATIVE BANKING BOARD AAIB (Arab African 1 Egypt Sep-19 Mar-21 Sep-23 International Bank) ABANCA 2 Corporación Spain Sep-19 Mar-21 Sep-23 Bancaria ABN AMRO Bank 3 Netherlands Sep-19 Mar-21 Jun-20 Report Sep-23 N.V. 4 Absa Bank Ltd. South Africa Sep-19 Mar-21 Sep-23 5 Access Bank Plc Nigeria Sep-19 Mar-21 Sep-23 Ahli United Bank 6 Bahrain Jan-20 Jul-21 Jan-24 B.S.C AIB Group (Allied 7 Ireland Sep-19 Mar-21 Sep-23 Irish Banks) Al Baraka Banking 8 Bahrain Oct-19 Apr-21 Oct-23 Group B.S.C. Ålandsbanken Plc. 9 Finland Nov-19 May-21 Nov-23 (Bank of Åland) ALEXBANK (Bank of 10 Egypt Sep-19 Mar-21 Sep-23 Alexandria) 11 Alpha Bank Greece Sep-19 Mar-21 Sep-23 12 Amalgamated Bank USA Sep-19 Mar-21 Sep-23 ANZ (Australia and 13 New Zealand Australia Sep-19 Mar-21 Nov-20 Report Sep-23 Banking Group) 14 Arion Bank Iceland Sep-19 Mar-21 Sep-23 15 Aurskorg Sparebank Denmark Feb-20 Aug-21 Feb-24 Banca MPS (Banca 16 Monte dei Paschi di Italy Sep-19 Mar-21 Oct-20 Report Sep-23 Siena) 17 Banco Bolivariano Ecuador Dec-19 Jun-21 Dec-23 Banco Bradesco 18 Brazil Sep-19 Mar-21 Sep-23 S.A.
    [Show full text]
  • Greek Debt Standoff Weighs on Credit Profiles of Banks by Dexter Tan
    NUS Risk Management Institute rmicri.org Greek debt standoff weighs on credit profiles of banks by Dexter Tan The financial situation of Greece’s four largest banks has worsened as continued deposit outflows have apparently accelerated to record levels in January. Withdrawals between Jan 19 and Jan 23 this year were larger than in May 2012, when Greece was on the verge of exiting the EU. Depositor sentiment has been affected by negative political developments and the country’s inability to repay its debt obligations on time. The banks depend on cheap ECB funding to fund day to day operations but the ECB could stop funding Greek lenders if the newly elected government rejects the bailout program obligations with its international creditors. These factors constitute a major liquidity risk for the four largest Greek lenders, which account for more than 90% of the domestic banking sector assets. The RMI 1-year probabilities of default (RMI 1-year PD) for the National Bank of Greece, Piraeus Bank, Eurobank Ergasias and Alpha Bank have increased markedly over the recent weeks (see Figure 1). An election victory by the leftwing, anti-austerity Syriza party triggered a sharp sell-off in Greek bank shares; National Bank of Greece (NBG) and Piraeus Bank witnessed a 37% and 43% decline in market cap respectively in January (see Table 1) as actions and comments by the newly appointed Ministers reignited fears of another Greek debt crisis. This has led to a decline in the companies’ RMI distance-to-default (RMI DTD) measure and, consequently, an increase in the RMI 1-year PD.
    [Show full text]