Cover_UK.qxd 07/04/05 13:25 “ Æ2
ANNUAL REPORT 2004 PiraeusUK_1_26.qxd 13/04/05 14:39 “ Æ1
CONTENTS
BRIEF OVERVIEW 2
PIRAEUS GROUP: A DYNAMIC GROWTH COURSE 3
CHAIRMAN’S REPORT 5
DEVELOPMENTS IN THE INTERNATIONAL AND GREEK ECONOMIES 9
CONSOLIDATED FIGURES OF PIRAEUS GROUP 10
FIGURES OF PIRAEUS BANK 11
ANALYSIS OF FIGURES AND RESULTS OF PIRAEUS GROUP 12
RETAIL BANKING 18
CORPORATE BANKING 23
E-BANKING (WINBANK, ATM) 29
INTERNATIONAL ACTIVITIES 30
INVESTMENT BANKING 35
ASSET MANAGEMENT 39
REAL ESTATE DEVELOPMENT AND MANAGEMENT 42
TECHNOLOGY AND INFRASTRUCTURES 44
RISK MANAGEMENT 47
HUMAN RESOURCES 51
CORPORATE GOVERNANCE 55
SOCIETY AND ENVIRONMENT 59
CUSTOMER RELATIONS 65
SHARE PRICE DEVELOPMENT AND PERFORMANCE 67
ADOPTION OF THE INTERNATIONAL FINANCIAL REPORTING STANDARDS 70
GROWTH GOALS AND PROSPECTS OF PIRAEUS BANK GROUP 72
CONSOLIDATED FINANCIAL STATEMENTS AS AT 31 DECEMBER 2004 74
ANALYSIS OF FIGURES AND RESULTS OF PIRAEUS BANK 78
FINANCIAL STATEMENTS AS AT 31 DECEMBER 2004 82
DOMESTIC BRANCH NETWORK 86
DOMESTIC SUBSIDIARIES 93
NETWORK OF BRANCHES AND SUBSIDIARIES ABROAD 94 PiraeusUK_1_26.qxd 13/04/05 14:39 “ Æ2
BRIEF OVERVIEW
1916 ñ Establishment of Piraeus Bank 1918 ñ The shares of Piraeus Bank were listed in the Athens Stock Exchange 1963 ñ Piraeus Bank was integrated into Emporiki Bank Group in Greece 1975 ñ Piraeus Bank came under state control within Emporiki Bank Group 1991 ñ Privatisation of Piraeus Bank 1992 ñ Year of restructuring, reform and growth ñ Participation in Private Investment SA, which was renamed Piraeus Investment SA (1995) 1993 ñ Establishment of Piraeus Leasing SA, Piraeus Mutual Funds SA and Piraeus Insurance Agency SA 1994 ñ Establishment of Piraeus Finance SA 1996 ñ Establishment of Tirana Bank 1997 ñ Absorption of the assets and liabilities of Chase Manhattan Bank in Greece ñ Acquisition of 30% of Sigma Securities SA and agreement on the acquisition of an additional 21% (1998) 1998 ñ Acquisition of Macedonia-Thrace Bank and Credit Lyonnais Hellas Bank ñ Agreement on the acquisition of a majority stake in XiosBank (completion early 1999) ñ Agreement on the acquisition of a 56% stake in the Marathon National Bank of New York (completion in mid 1999) ñ Establishment of Piraeus Factoring SA, Piraeus Multifin SA and Multicollection SA 1999 ñ Absorption of the assets and liabilities of National Westminster Bank in Greece ñ Agreement on the acquisition of Pater Credit Bank in Romania (consolidated in April 2000 renamed as Piraeus Bank Romania). Setting up of the London branch 2000 ñ Merger through the absorption of Macedonia-Thrace Bank and XiosBank by Piraeus Bank ñ Establishment of new network units in Greece (26 new branches) and abroad ñ Creation of Winbank, the first integrated e-banking platform in Greece 2001 ñ Expansion of the branch network in Greece with the opening of 18 new branches ñ Acquisition of OTE Leasing SA 2002 ñ Acquisition of a 57.8% stake in ETBAbank through bidding offer ñ Strategic alliance agreement with ING on joint venture activities in the fields of bancassurance, employee benefits and asset management ñ New branches in Albania, Romania and Bulgaria 2003 ñ Merger through absorption of ETBAbank by Piraeus Bank, Piraeus Investment Company by Hellenic Investment Company and ETBA Leasing SA by Piraeus Leasing SA ñ Creation of ING Piraeus Asset Management SA and ING Piraeus Life SA ñ Development of the network in Greece (23 new branches) and abroad 2004 ñ Acquisition of Interbank NY by the subsidiary Marathon Banking Corporation in New York and merger through absorption of Interbank by Marathon Bank ñ Merger through absorption of Devletoglou Securities SA by Sigma Securities SA, ETBA Insurance Agency SA by Piraeus Insurance Agency SA and absorption of Piraeus Finance SA, Piraeus Investment Consulting SA and Piraeus Equities Holding SA by Piraeus Bank ñ Expansion of the network in Greece (28 branches) and abroad (24 branches)
2 PiraeusUK_1_26.qxd 13/04/05 14:39 “ Æ3
PIRAEUS GROUP: A DYNAMIC GROWTH COURSE
Assets (€ billion) Loans market share (%)
20 12 11.0 10.3 16.6 10.0 10 14.7 14.7 15 8.1 12.4 8 7.6 10.5 6.2 10 6 8.1 3.9 4 5 3.8 2 0.08 0.3 0 0 1991 1998 1999 2000 2001 2002 2003 2004 1991 1998 1999 2000 2001 2002 2003 2004
Personnel Branches
6,000 350 5,358 309 4,896 5,000 4,743 300 4,333 4,302 257 241 3,938 250 4,000 214 196 200 3,000 2,677 164 150 118 2,000 100
1,000 50 215 12 0 0 1991 1998 1999 2000 2001 2002 2003 2004 1991 1998 1999 2000 2001 2002 2003 2004
3 PiraeusUK_1_26.qxd 13/04/05 14:39 “ Æ4 PiraeusUK_1_26.qxd 13/04/05 14:39 “ Æ5
CHAIRMAN’S REPORT
Dear Shareholders,
The year 2004 was a good one for Greek banks and a record year for Piraeus Bank in particular which achieved its historically highest profitability by enhancing its status and presence in the domestic banking system.
Asserting the strengthening of the Group, the international rating agencies ªoody’s and Standard & Poor’s upgraded the Bank's credit rating to Baa1 and the Bank’s outlook to positive, accordingly, reflecting Piraeus Bank's improved position in the market and its successful growth strategy.
In the previous year the Group’s regulatory capital was enhanced through bond issues (subordinated and hybrid bonds), Group participation increased in subsidiary companies with activities associated to the Bank's core business, while the non-financial participation portfolio of the Bank was gradually decreased, to cut down on costs and improve capital performance.
Moreover, during 2004 the Group proceeded to a series of strategic moves, such as stepping up its presence in Balkan countries, resulting in an agreement on the acquisition of two small yet dynamic banks in Bulgaria and Serbia in the beginning of 2005. At the same time, Interbank New York was absorbed by Marathon Bank and Devletoglou Securities S.A. was merged by absorption into Sigma Securities S.A.
The Group’s performance and profitability were boosted through the increase in the operating income and the containment of operating expenses, with an emphasis on profit from commercial banking operations. As a result, the efficiency ratio ("cost to income") improved to 58.6% versus 63.1% last year. Net profit after tax and minority interests increased by 40.4%, amounting to €142.5 mn, historic high for the Bank's profitability.
Thus, the Bank’s Board of Directors will propose to the General Meeting of Shareholders to distribute a dividend of €0.40 per share, i.e. increased by 33% compared to the year before, which is equal to a 4.0% dividend yield based on the average share price throughout 2004 and 3.1% based on the end-of-year share price. The improved profitability was also reflected on the Piraeus Bank’s share price, which increased by 33.5% in 2004, following an increase of 62.9% already scored in 2003.
In 2004 the Group’s expansion was pursued. The network grew by 52 new units, currently numbering 309 branches. The branch network grew by 28 units in Greece, 16 of which are located in Attica where the Bank is still lagging behind the competition. 5 new branches were added to the network of Piraeus Bank in Bulgaria reaching 13 units, in Romania 8 new branches were opened raising the number of Piraeus Bank Romania branches to 14, while in Albania the addition of 7 new branches established a network of 22 Tirana Bank branches. Finally, the network of Marathon Bank in New York grew to 10 branches, resulting from the integration of the 4 branches of the absorbed Interbank New York.
The Group’s expansion strategy to South-eastern Europe markets was marked by the signing of an agreement on the acquisition of 99.7% of the Bulgarian Eurobank, with a network of 48 branches and assets of €220 mn, as well as 80% of the Serbian Atlas Banka, with a network of 9 branches and assets of €63 mn, in the beginning of 2005.
5 PiraeusUK_1_26.qxd 13/04/05 14:39 “ Æ6
Along with the growth of the branch network, which is the main distribution channel, the development of complementary channels was pursued focusing on e-banking for the distribution of the Group's products and services. Winbank, the Group’s e-banking platform, enriched with new services, holds a leading position in the market with more than 130,000 users and high customer satisfaction rates. In addition, 84 new units were added to the ATM network currently numbering 449 in total, out of which 199 are in selected off-site locations.
In 2004, Piraeus Bank Group achieved a major increase in all its main figures. The Group’s assets rose to €16,591 mn, increased by 12.6% compared to 2003, with a boost to its most profitable items, such as loans, which accounted for 73.9% of total assets compared to 69.8% in December 2003.
Total assets under management (deposits, retail bonds issued, mutual funds under management excluding money market funds and interbank) amounted to €15,497 mn against €13,669 mn at the end of 2003, showing an increase of 13.4%. Customer deposits excluding repos, in particular, rose by 16.5% due to the major increase in savings (23.2%) and sight deposits (27.6%).
Loans and advances before provisions rose to €12,685 mn up from €10,681 mn in December 2003, increased by 18.8%, with mortgage loans (41.8%) and loans to small and medium-sized enterprises/SMEs (35%) marking the fastest growth rates.
The Group’s total equity capital totaled €1,215 mn at the year end from €1,342 mn in the previous year, with shareholders’ funds amounting to €957 mn against €1,016 mn in 2003. This is because, in the context of the core banking enhancement policy, holdings in subsidiaries of the financial sector increased in 2004 thus leading to a rise in goodwill and drop in minority interests in total equity.
The consolidated pre-tax profit amounted to €217.0 mn compared to €165.0 mn in 2003, i.e. increased by 31.5%, while the Group’s profit after tax attributable to Piraeus Bank’s shareholders, amounted to €142.5 mn compared to €101.5 mn in 2003, i.e. increased by 40.4%.
The Group’s primary objective for 2005 is growth coupled with improved operating income and contained operating expenses. The main priorities of the Group for 2005 also include: ñ expansion of the Group’s presence in the South-eastern European region, with the establishment of new branches and/or through acquisitions of local banks, ñ further consolidation of the Group’s position in retail banking, being firmly among the first choices of customers for products and services, ñ assertion of e-banking (winbank) excellence, ñ significant reinforcement of its position in specialised market segments (investment banking, asset management, private banking, bancassurance), ñ systematic monitoring of assumed risks, ñ boost of all performance and efficiency ratios and further enhancement of the Group’s operating and total profits.
6 PiraeusUK_1_26.qxd 13/04/05 14:39 “ Æ7
Dear Shareholders,
Guided by its desire to strengthen its value and defend the corporate interests, Piraeus Bank has set a solid framework of corporate governance and social responsibility principles. Therefore, in the beginning of 2004, Piraeus Bank joined voluntarily the UN Global Compact, which includes ten principles in the areas of human rights, labour rights, environmental protection and prevention of corruption. Piraeus Bank took the initiative to support and promote these principles in its scope of activities.
As of 2005, our financial statements will be prepared according to the International Financial Reporting Standards (IFRS). In the past two years, Piraeus Bank Group has undertaken the required preparation and adaptation operations so as to smoothly implement IFRS.
Piraeus Bank Group will dynamically continue its growth progress, improving its performance and profitability. A firm objective remains to play a leading part in the individual markets, responding to the requirements of the customers and the investors who trust it.
Michalis G. Sallas
7 PiraeusUK_1_26.qxd 13/04/05 14:39 “ Æ8
STEEL MILL S.A. Steel products manufacturing PiraeusUK_1_26.qxd 13/04/05 14:39 “ Æ9
DEVELOPMENTS IN THE INTERNATIONAL AND GREEK ECONOMIES
International Economy
The global economy, according to data provided by the Organisation for Economic Co- operation and Development (OECD), had an actual growth rate of 3.6% in 2004 against 2.2% in 2003, and the world trade is estimated to have grown by a rate of 9.5%.
The USA economy growth rate was sped up reaching 4.4% against 3.0% in 2003. In the euro zone, the GDP growth rate recovered after three consecutive years of deceleration and was set at 2.0% against 0.5% in 2003, mainly due to the improved performance of the French and German economies. The Japanese economy manifested major improvement in 2004, attaining a growth rate of 4.4% against 2.5% in 2003. In China, the most populated economic power in the world, the growth rate remained at the high levels (9.0%) of 2003 (9.1%), as was the case in India with a growth rate of 6.4%, despite the minor slow-down compared to 2003 (7.2%).
For 2005, the global economy is expected to continue to grow at high rates (estimate for 2.9%), namely a little slower than 2004 because of a projected minor deceleration in developed economies, such as the US, Japan, the UK, as well as China. The main reasons for concern in 2005 are still the volatility of oil prices. Concerning the euro zone economy, the growth rate is estimated to remain at the same level as in 2004, i.e. 2.0%, with the inflation rate slightly subsiding to 2.0%, along with the unemployment rate, which is expected to drop to 8.6%.
Greek Economy
The GDP rose by 3.9% in 2004 at constant prices against 4.3% in 2003. Private consumption was the dominant growth factor and was based on the increase in the actual available household income, the historic low of interest rates and continued momentum of consumer credit. The national consumer price index reached 3.1% in December 2004 on an annual basis, namely equivalent to that in the same month a year earlier.
In the fiscal sector, following a relevant revision, the general government deficit deteriorated rising to above 6.0% of the GDP in 2004, which is due to the increased expenditure for the Olympic Games, election expenses, as well as an overestimation of the ordinary budget income and underestimation of expenses.
For 2005, the positive performance of the Greek economy is expected to be maintained, as it is anticipated that the real growth rate will be approximately 3.5%, gross investments will increase further by 4.1%, while employment will increase, thus resulting in a decrease in the unemployment rate.
9 PiraeusUK_1_26.qxd 13/04/05 14:39 “ Æ10
CONSOLIDATED FIGURES OF PIRAEUS GROUP
Key Figures Amounts in € millions 31.12.2004 31.12.2003 Change
Total assets 16,591 14,735 12.6% Gross loans 12,685 10,681 18.8% Customer deposits and retail bonds 10,666 9,153 16.5% Equity capital 1,215 1,342 -9.5% Shareholders’ funds 957 1,016 -5.8% Number of branches 309 257 20.2% Personnel 5,358 4,896 9.4% Number of shares at year-end 200,257,006 197,578,101 Average weighted number of shares in circulation during the year 197,609,867 167,403,805
Profit and Loss Amounts in € millions 2004 2003 Change
Net interest income 446.6 391.2 14.2% Net commission income 133.6 110.1 21.4% Gross operating profit 696.3 595.2 17.0% Operating cost 408.1 375.6 8.7% Operating profit before provisions 288.2 219.6 31.2% Operating profit (before extraordinary results and tax) 199.9 151.1 32.3% Group’s profit before tax 217.0 165.0 31.5% Profit of Piraeus Bank Shareholders after tax 142.5 101.5 40.4% Earnings per share (EPS) after tax in € (1) 0.711 0.514 38.4%
Key Ratios 2004 2003
Return on average equity (2) 14.4% 12.5% Return on average assets (3) 1.14% 0.84% Cost / income 58.6% 63.1% Capital Adequacy Ratio – BIS 13.1% 10.8% Tier I 10.2% 10.8%
Ratings from International Rating Agencies Moody’s (4) Standard & Poor’s (5) Fitch
Long-term credit rating Baa1 BBB BBB+ Short-term credit rating P-2 A-2 F2 Outlook Stable Positive Stable
(1) It was calculated based on the number of shares at the end of every year (2) Profit after tax and after minority interests (3) Profit after tax (4) On 03.06.2004 Moody’s agency upgraded Piraeus Bank’s long-term deposit rating to Baa1 from Baa2 (5) Standard & Poor’s agency upgraded the outlook of Piraeus Bank to positive on 01.09.2004
10 PiraeusUK_1_26.qxd 13/04/05 14:39 “ Æ11
FIGURES OF PIRAEUS BANK
Key Figures Amounts in € millions
31.12.2004 31.12.2003 Change
Total assets 15,771 13,992 12.7% Gross loans 11,946 10,027 19.1% Customer deposits and ∂∆µ∞ bonds 11,143 8,905 25.1% Equity capital 1,299 1,303 -0.3% Number of branches 263 230 14.3% Personnel 4,191 3,996 4.9%
Profit and Loss Amounts in € millions
2004 2003 Change
Net interest income 382.8 341.8 12.0% Net commission income 98.1 74.4 31.8% Income from securities 23.0 18.5 24.3% Other operating income 15.3 17.9 -14.6% Results from financial transactions 16.7 39.8 -58.0% Total net revenues 535.9 492.4 8.8%
Staff expenses 162.6 151.8 7.1% Other administrative and other operating expenses 151.4 135.3 11.9% Depreciation 39.8 43.5 -8.6% Total expenses 353.8 330.6 7.0%
Provisions 82.2 63.1 30.2% Extraordinary results 14.2 13.1 8.1%
Profit before tax 114.2 111.8 2.1% Profit after tax 90.8 84.1 8.0%
11 PiraeusUK_1_26.qxd 13/04/05 14:39 “ Æ12
ANALYSIS OF FIGURES AND RESULTS OF PIRAEUS GROUP
Pre-tax profit of Piraeus Bank Group in 2004 reached €217.0 mn against €165.0 mn in 2003, an increase of 31.5%, while after-tax profit of the Group amounted to €179.1 mn versus €123.7 mn in 2003, an increase of 44.8%. After-tax profit attributable to Piraeus Bank’s shareholders amounted to €142.5 mn in 2004 compared to €101.5 mn the previous year, representing a growth of 40.4%.
The highlights of the 2004 results for Piraeus Bank Group are as follows: ñ increase of net interest income by 14.2% and net commission income by 21.4%, ñ enhancement of net interest margin-NIM on average interest earning assets to above 3%, ñ improvement of "cost to income" ratio to 58.6% versus 63.1% last year, ñ expansion of the loan portfolio by 18.8%, ñ rise of customer deposits by 16.5%, ñ improvement of after-tax ROE to 14.4% up from 12.5% last year, ñ enhancement of after-tax ROA to 1.14% up from 0.84% in 2003, and ñ retaining of capital adequacy ratio-BIS at a high level (13.1% with Tier I at 10.2%)
FIGURES OF PIRAEUS BANK GROUP
At the end of 2004 the Group’s total assets amounted to €16,591 mn versus €14,735 mn a year ago, increased by 12.6%.
This increase is mainly due to the gross loans which climbed 18.8% at the end of 2004 totalling €12,685 mn up from €10,681 mn a year earlier. As a result of this substantial expansion, loans accounted for 73.9% of total assets up from 69.8% last year, mainly at the expense of the bond portfolio, which decreased to 8.2% of total assets versus 13.4% last year and the participations, which reduced to 5.7% of assets compared to last year’s
Assets Composition 6.8%. Dec. 2004: €16.6 billion 6.7% 1.7% Cash & Central Loans to households accounted for 30.7% of the total loan portfolio of the Group, reaching & Bank €3,848 mn at year-end 2004 versus €3,053 mn the previous year, raised by 26.0%.
$ 73.9% Interbank claims Loans to small and medium-sized enterprises (SMEs) through the branch network, a Net loans " segment where the Group possesses significant know-how and places special emphasis,
Bonds rose by 35.0% amounting to €4,631 mn in December 2004 versus €3,430 mn in 2003. 8.2% These loans account for 36.9% of the total loans with an upward trend. Other 9.5% Loans to medium / large enterprises including shipping accounted for 32.4% of the total Liabilities & Equity Composition loan portfolio amounting to €4,059 mn at the end of December 2004, at the same level of
Interbank 2003 (€4,047 mn). 10.3% obligations &
ECP - EMTN - The non-performing loans stood at 3.91% of gross loans at the end of 2004 against 3.98% $ Hybrid a year earlier, while excluding the ex-ETBAbank loan portfolio the ratio stands at 2.67%. 68.2% Loan loss reserves correspond to 85.3% of non-performing loans, which is one of the " Deposits highest coverage ratios in the Greek banking market, in fact, it is much higher even than Equity the average NPLs ratio of the banks in E.U.-15 (67.4% Dec.’03). 10.6% 7.3% 3.6% Other
12 PiraeusUK_1_26.qxd 13/04/05 14:39 “ Æ13
Distribution of Piraeus Bank Group Loans and Advances per Economy Sector Amounts in € millions
Dec. ‘04 Dec. ‘03 Change
Industry 1,971.6 1,784.2 10.5% Handicraft 156.8 147.9 6.0% Trade 1,828.9 1,581.8 15.6% Shipping 557.8 536.4 4.0% Tourism 515.8 486.3 6.1% Energy and Transport 264.8 290.7 -8.9% Construction 981,0 771.5 27.2% Other Sectors 2,271.5 1,835.2 23.8%
Loans to private enterprises 8,548.2 7,434.0 15.0%
Mortgage 2,228.9 1,572.3 41.8% Consumer 1,618.9 1,480.7 9.3%
Loans to households 3,847.8 3,053.0 26.0%
Public companies and organizations 142.0 43.0 230.2%
Other receivables 146.8 151.0 -2.8%
Total loans 12,684.8 10,681.0 18.8%
Customer deposits reached €10,666 mn compared to €9,153 mn at the end of 2003, an increase of 16.5%, with growth rates of 23.2% in savings deposits, 27.6% in sight deposits and 9.2% in time deposits. In customer deposits, ETBA bonds issued for the Bank’s retail clientele are also included, which amounted to €475 mn at the end of 2004 stable at last year’s level. The high growth rate of savings and sight deposits, which are funding sources of low cost, is the result of the "maturing" of the branch network.
Development of Obligations to Customers Amounts in € millions
Composition
Dec. ‘04 Dec. ‘03 Change Dec. ‘04 Dec. ‘03
Sight 2,384.1 1,868.0 27.6% 21.1% 18.0% Savings 2,988.9 2,426.0 23.2% 26.4% 23.3% Time 4,620.5 4,232.8 9.2% 40.8% 40.7% ETBA bonds issued 475.5 473.1 0.5% 4.2% 4.5% Other obligations 196.7 153.0 28.6% 1.7% 1.5%
Total deposits 10,665.7 9,152.9 16.5% 94.3% 88.0%
Repos 648.8 1,248.9 -48.1% 5.7% 12.0%
Total obligations to customers 11,314.5 10,401.8 8.8% 100.0% 100.0%
13 PiraeusUK_1_26.qxd 13/04/05 14:39 “ Æ14
Customer repos amounted to €649 mn against €1,249 mn a year earlier, in line with the Group’s strategy of decreasing the bond portfolio.
Total equity at the end of 2004 stood at €1,215 mn against €1,342 mn at the end of the previous year. Shareholders’ funds amounted to €957 mn in December 2004 as opposed to €1,016 mn a year earlier, in the framework of the Group’s policy to increase its participation in subsidiaries of the financial sector (i.e. Marathon Bank, Piraeus Leasing, Piraeus Multifin, Piraeus Factoring). As a result, goodwill rose by €96 mn (reduction of total equity) and at the same time minority interests declined by €69 out of total equity. It is noted that total equity was also affected from the implementation of the Law 3259/2004 article 39 "Settlement of Non Performing Debts to Credit Institutions" by €37 mn.
Moreover, the Group, in its effort to broaden its funding sources and to lengthen their average duration, had raised through Euro Commercial Paper (ECP), Euro Medium Term Note (EMTN - senior & subordinated debt) and hybrid issues €1,757 mn at the end of December 2004.
14 PiraeusUK_1_26.qxd 13/04/05 14:39 “ Æ15
ANALYSIS OF PIRAEUS BANK GROUP’S RESULTS Net Revenues (€ mn)
696.3 Total net revenues in 2004 amounted to €696.3 mn compared to €595.2 mn in 2003 up % 595.2 by 17.0%, with 83.3% stemming from net interest income and commission income. This $ 516.8 # 17.0% significant improvement of net revenues is also related to the increase of business " 15.2% ! volumes through the expanding branch network, which reached 309 units, with 113 of them established after 2001. 2004 2003 2002 Net interest income rose by 14.2% amounting to €446.6 mn as opposed to €391.2 mn in 2003. Net interest margin (net interest income on average interest earning assets) was Net Interest Income (€ mn)
additionally strengthened to above 3%, reaching 3.07% against 2.88% a year earlier. # 446.6 391.2 " 355.1 Net commission income totalled €133.6 mn compared to €110.1 mn in 2003, an increase ! 14.2% 10.2% of 21.4%. 80% of net commission income is generated through commercial banking activities, standing at €107.2 mn in 2004 against €81.1 mn last year, grown by 32.3% mn. 2004 2003 2002 Results on financial operations reached €82.2 mn in 2004 versus €57.6 mn in 2003. The major part of it was the outcome of stock trading of Hellenic Investment SA equity portfolio (the closed-end fund of the Group). So, the attributable to the shareholders results on financial operations reached €53.0 mn against €46.7 mn in the previous year, an increase of 13.5%.
Other operating income, which includes revenues from other banking activities, amounted to €13.8 mn against €16.5 mn the previous year.
Total Operating Cost (€ mn) Total cost amounted to €408.1 mn against €375.6 mn in 2003, mainly due to the branch # network expansion by 20% (309 units versus 257 last year), mostly focused on the 408.1 375.6 greater Athens area and in the Balkan countries. It should be noted that Piraeus Bank is " 358.9 ! the only bank, compared to its peer group, which significantly expands its branch network, 8.7% 4.7% placing special emphasis on the greater Athens area, where the existing network does not correspond to the Bank’s size and the area’s business volumes. 2004 2003 2002 Staff expenses rose by 5.5% versus 2003 (€183.1 mn against €173.5 mn a year ago), if new hires due to branch expansion are excluded. With the addition of 462 new employees Staff expenses (€ mn)
(189 in Greece, 217 in the Balkans and 56 in New York) mainly due to the expansion of 10.1% 191.1 New 173.5 the branch network in Greece (28 branches) and abroad (20 in the Balkans and 4 in New Staff 8.0 York), staff expenses were up by 10.1%. # 5.5% 183.1
General administrative expenses and other expenses in 2004 equalled to €170.6 mn #
versus €152.0 mn in 2003, showing an increase of 12.2%. This rise is mainly attributed to expenses related to the enlargement of the branch network and the increase of 2004 2003 business volumes of the Group.
The depreciation expense was €46.4 mn against €50.0 mn last year, presenting a reduction of 7.3%, due to the fact that large technological investments, which took place
15 PiraeusUK_1_26.qxd 13/04/05 14:39 “ Æ16
in the period 1999-2000 (merger of the Piraeus Bank, Macedonia-Thrace Bank and XiosBank), have been depreciated to a large extent.
The "cost to income" efficiency ratio improved significantly by 450 basis points down to 58.6% from 63.1% in 2003.
Pre-provision profit amounted to €288.2 mn compared to €219.6 mn a year earlier, increased by 31.2%. The "pre-provision profit to average assets" ("recurring earning power") ratio had a considerable improvement and reached 1.84% against 1.49% the previous year.
The provision expense was €88.3 mn in 2004 against €68.5 mn a year ago, increased by 28.9%, contributing to the coverage ratio of NPLs, which stood at 85.3%. It should be noted that in 2004 already formed reserves of €64 mn were used to write-off an equal amount of doubtful claims against customers.
Extra-ordinary revenues-expenses and results were €17.2 mn against €14.0 mn the previous year. It is noted that, if these amounts appeared as "other operating income- expenses", according to IFRS, this would result in a further improvement of "cost to income" ratio to 57.2%.
The significantly enhanced profitability led to the improvement of ROE and ROA ratios. In specific, ROE increased to 18.0% before tax up from 17.0% in 2003 and to 14.4% after tax up from 12.5% a year ago. ROA also advanced to 1.39% before tax up from 1.12% in 2003 and to 1.14% after tax up from 0.84% last year.
16 PiraeusUK_1_26.qxd 13/04/05 14:39 “ Æ17
SHELMAN GREEK-SWISS WOOD & TIMBER PROCESSING INDUSTRY S.A. PiraeusUK_1_26.qxd 13/04/05 14:39 “ Æ18
RETAIL BANKING
Regarding retail banking, Piraeus Bank Group pioneered in 2004 by designing new products, improving existing ones and focusing on customer service. The balances of deposit products from individual customers of Piraeus Bank Group reached €6,999.6 at the end of 2004, recording an increase of 28.7% compared with 2003, while loan balances of individual customers rose to €3,847.8 mn, i.e. increased by 26.0%.
RETAIL DEPOSIT PRODUCTS
An intensive effort was made in 2004 to attract new funds, which yielded a major increase in deposits. Specifically, savings accounts rose by 23.2%, current accounts by 31.3% and retail time deposits by 49.0%. It is noted that, apart from the traditional time deposit products, "new generation" medium-term deposit products contributed to the time deposits growth ("Piraeus 12", "Piraeus 2-Year", "Multiprofit", "Double Dollar"). This rise in deposits is also associated with the significant number of new branches that have been established in the past years, resulting in a nation-wide enhanced coverage and an enlargement of market share.
Individual deposits (on a consolidated basis) Amounts in € millions
2004 2003 Change
Savings 2,988.9 2,426.0 23.2% Current 801.9 610.7 31.3% Time 2,470.8 1,657.9 49.0% Investment products 262.5 270.0 -2.8% ∂∆µ∞bank bonds issued 475.5 473.1 0.5%
Total deposits 6,999.6 5,437.7 28.7%
Repos 403.0 943.5 -57.3%
Total deposits & repos 7,402.6 6,381.2 16.0%
Personal Investment Products and Mutual Funds
The moderate inflow of investment funds continued in 2004. As a result, the amount of investment funds at the end of 2004 remained at the same level as in 2003. It worth noting though that 24% of investments in "Piraeus Major" came from new funds, while the USD "Piraeus Major" product was widely accepted by investors and there was an increase in both participations and applications.
Moreover, 25 new ING(L) mutual funds were launched in 2004, destined to broaden the investment options of customers, so that larger numbers of investors could be attracted.
18 PiraeusUK_1_26.qxd 13/04/05 14:39 “ Æ19
CONSUMER AND MORTGAGE CREDIT
The year 2004 brought positive quality and quantity results for Piraeus Bank Group with regard to consumer and mortgage credit. Total loans to individual customers (consumer- mortgage-credit cards) at the end of 2004 rose to €3,847.8 mn against €3,053.0 mn in 2003, i.e. expanded by 26.0%. Loans to individual customers account for 30.7% of the Group’s total loan portfolio.
The market share of Piraeus Group in Greece in the consumer credit sector was 9.3% at the end of 2004, while excluding credit cards balances this market share rose to 14.0%. The relevant market share in the mortgage credit sector was 7.6% at the end of 2004 against 7.0% in the previous year.
Consumer Credit – Credit Cards
The Group's consumer loans balance amounted to €1,618.9 mn at the end of 2004, compared with €1,480.7 mn at the end of the previous year, recording a growth of 9.3%. Consumer loans (excluding consumer factoring) recorded a growth rate of 20.8%, while the Group pursued its consumer factoring position decrease due to low profit margins, thus the relevant balance dropped by 49.4% at the end of 2004.
Consumer Credit (on a consolidated basis) Amounts in € millions
2004 2003 Change
Consumer loans (excluding consumer factoring) 1,496.0 1,237.9 20.8% Consumer factoring 122.9 242.8 -49.4%
Total consumer credit loans 1,618.9 1,480.7 9.3%
Some of the major developments in consumer credit in 2004 were the following: ñ new products were developed, such as consumer and revolving personal loans at euribor-linked interest rate, ñ products and procedures were modified accordingly so as to take maximum advantage of the growth opportunities available in the market, ñ special emphasis was placed on cross-selling, in order to make better use of the existing client base and strengthen customer relations, providing integrated solutions at favourable rates, ñ special products were developed based on roll-over credit, in order to be able to offer more flexible solutions to customers and prolong customer relations with the Bank.
It is also noted that Piraeus Bank has a unique competitive edge over peers enabling customers to have their own tailor-made interest rate based on their profile.
19 PiraeusUK_1_26.qxd 13/04/05 14:39 “ Æ20
The credit cards sector of Piraeus Bank recorded progress in 2004. Specifically, the number of credit cards rose to 276,450, increased by 26.8%, and brought a total turnover of up to €333 mn against €278 mn in the previous year, increased by 19.8%. The number of debit cards at the end of 2004 was 410,342.
In 2004, the optimization of operating structures and processes was completed, establishing higher standard services for credit and debit card holders. In an effort to provide improved security for customers, the Fraud Detection Tool was implemented to help detect suspicious transactions in only few minutes and notify customers immediately. Finally, Piraeus Bank was among the first banks that upgraded their EFT / POS, so that they may accept transactions with Visa Chip cards, providing enhanced transaction security.
Consumer Goods Financing - Piraeus Multifin SA
Piraeus Multifin SA operates in the area of financing both purchase and selling of new and used vehicles, as well as motorcycles and small vessels. Piraeus Multifin works with more than 300 car dealerships, including certain major dealers. In 2004, regarding its sales to final consumers, the company achieved a large increase in its volume by 23.7%, exceeding by far the market growth rate which ranged at 3%. At the same time, a significant increase was recorded in stock financing, which rose to €38.1 mn at the end of 2004 from €21.7 mn in 2003. This contributed and it is expected to strengthen even more in the future the company’s profitability.
Key Financial Figures of Piraeus Multifin SA Amounts in € millions
2004 2003 Change
Loans to customers 418.9 396.0 5.1% Equity capital 13.8 13.3 3.7% Turnover 323.5 261.5 23.7% Profit before tax 7.7 10.7 -27.8%
Mortgage Credit
The Group's mortgage loans balance amounted to €2,228.9 mn at the end of 2004, compared with €1,572.3 mn at the end of 2003, recording an increase of 41.8%, which was much higher than the market’s growth rate (27.2%).
Mortgage Credit (on a consolidated basis) Amounts in € millions
2004 2003 Change
Mortgage loans 2,228.9 1,572.3 41.8%
20 PiraeusUK_1_26.qxd 13/04/05 14:39 “ Æ21
The mortgage credit growth of Piraeus Bank Group was striking in 2004. The profound revision of products and processes in the past year resulted in the most modern and complete product range currently available in the market.
Specifically, new products were developed, such as "Mortgage for All", to fill in existing gaps in the mortgage market segment and attracted a large market share. At the same time, special mortgage loans were launched for Greek Roms and repatriates from the former Soviet Union, guaranteed by the Greek State.
Additionally, special emphasis was placed on the branch network personnel’s training in customer service and consultative sales for mortgage loans, and a call centre was established for sales support. Finally, partnerships with alternative sales channels (mainly constructors) were expanded.
BANCASSURANCE PRODUCTS AND INSURANCE BROKERAGE
During 2004 the promotion of bancassurance products continued, so as for the Bank’s branch network to be able to obtain insurance volumes at low cost and high return for all customer types. Total premiums under management in 2004 reached €44.8 mn raised by 21.4% versus 2003.
Premium production of Piraeus Bank Group Amounts in € millions
2004 2003 Change
Life insurance 10.7 9.1 17.7% General insurances 9.9 7.2 37.3% Lump sum 15.5 13.3 16.8% Pension fund 8.7 7.3 19.2%
Total premiums under management 44.8 36.9 21.4%
Bancassurance Products - ING Piraeus Life Insurance SA
ING Piraeus Life Insurance SA was set up as bancassurance joint venture between Piraeus Bank and ING. For 2004, the company strengthened its position in the market with its total insurance premiums amounting to € 51mn. As far as individual life insurance programmes are concerned, their range was further expanded with the addition of new products. Moreover, there was an impressive growth in the employee benefits segment, which was achieved through the continuous upgrading of IT systems, the gradual enhancement of back office and staffing of the employee benefits consultants team with new members and the establishment of ING Piraeus Employee Benefits trade name via selective corporate communication efforts.
21 PiraeusUK_1_26.qxd 13/04/05 14:39 “ Æ22
Insurance Brokerage
The Group owns Piraeus Insurance Agency SA, which operates as a broker for all types of insurance policies, having as a priority to fully meet the insurance requirements of Piraeus Bank Group’s customers. Proper organization and experience coupled with solid relation with first class insurance companies in Greece and abroad, enable the company to ensure complete coverage, low premiums and high quality services for its customers. It is noted that during 2004, the absorption of ETBA Insurance Agency by Piraeus Insurance Agency was completed.
Key Financial Figures of Piraeus Insurance Agency SA Amounts in € millions
2004 2003 Change
Total assets 5.7 4.6 23.3% Equity capital 0.9 1.2 -29.3% Turnover 2.7 1.6 70.7% Profit before tax -0.7 -0.8 16.5%
DOUBTFUL DEBTS COLLECTION – MULTICOLLECTION SA
Multicollection SA, a company providing rating and collection services with respect to commercial debts, efficiently pursued its co-operation with Piraeus Bank in 2004, collecting consumer loan debts and managing debt portfolios for Piraeus Multifin SA, Radio Korasidi SA, Piraeus Best Leasing SA, Lavipharm SA, American Express Bank.
Key Financial Figures of Multicollection SA Amounts in € millions
2004 2003 Change
Total assets 3.0 2.6 17.0% Equity capital 0.9 0.8 12.5% Turnover 4.5 3.3 35.3% Profit before tax 1.2 0.9 39.8%
22 PiraeusUK_1_26.qxd 13/04/05 14:39 “ Æ23
CORPORATE BANKING
BUSINESS DEPOSIT PRODUCTS
The business deposit accounts balance on a consolidated basis came to €3,666.1 mn at the end of 2004 against €3,715.2 mn at the end of 2003. This minor drop was due to the downward trend of time deposits despite a 25.8% increase in sight deposits, which amounted to €1,582.2. Repos from the Group’s corporate customers dropped to €245.8 mn against €305.4 mn in the previous year, in line with the Group’s strategy to downsize the bond portfolio.
Deposits from Businesses (on a consolidated basis) Amounts in € millions
2004 2003 Change
Sight 1,582.2 1,257.3 25.8% Time 1,887.2 2,304.9 -18.1% Other obligations 196.7 153.0 28.6%
Total deposits 3,666.1 3,715.2 -1.3%
Repos 245.8 305.4 -19.5%
Total deposits & repos 3,911.9 4,020.6 -2.7%
LOANS AND ADVANCES TO BUSINESSES
Piraeus Bank Group offers financing services to businesses that operate in all sectors of the economy. Total loans to businesses at the end of 2004 rose to €8,690.1 mn against €7,477.0 mn in 2003, i.e. expanded by 16.2%. Loans to businesses account for 69.3% of the Group's total loan portfolio.
Loans to Businesses (on a consolidated basis) Amounts in € millions
2004 2003 Change
Large Enterprises 3,501.5 3,510.8 -0.3% Shipping 557.8 536.4 4.0% SMEs & Business Credit 4,630.8 3,429.8 35.0%
Total 8,690.1 7,477.0 16.2%
Medium-Large Enterprises
In the Medium-Large Enterprises banking segment, the Group’s activities during 2004 focused on the following: ñ use of business opportunities and improvement of its client base composition, ñ on-going credit rating of its customers, and ñ quality upgrading of the services and products offered.
23 PiraeusUK_1_26.qxd 13/04/05 14:39 “ Æ24
As an immediate result of this policy, total revenues from corporate banking grew by 21.4%. It is noted that the general entrepreneurial environment in Greece in the past year was characterized by moderate growth, as well as deterioration of competitiveness in important business sectors, such as the textile, the IT or the constructions sector etc.
In the light of the Bank’s policy to do selectively business with strong firms enabling safer and more profitable loan margins, the loan portfolio was enriched with new client relationships, while at the same time co-operation with businesses that do not fulfil the Bank’s credit criteria was restrained.
Moreover, the Bank continued creating and supporting new medium and long-term loan products (syndicated / bond loans), while additionally it offers its corporate clients e-banking services, treasury risk management products, money market products, bancassurance, grouped consumer products to their employees, etc. At the same time, the promotion of products offered by the Group’s subsidiaries is pursued, such as leasing, factoring, securities, etc.
24 PiraeusUK_1_26.qxd 13/04/05 14:39 “ Æ25
Shipping Banking
The year 2004 was exceptional for merchant marine with large freight and vessel value increases. As a result, competition among banks offering shipping banking was largely intensified due to the high negotiating power of customers, who acquired high liquidity at low leverage rates, and the reduced loan requirements.
In this context, the Shipping Banking Division of Piraeus Bank pursued its effort to carefully grow its portfolio, in order to maintain the Bank's position among the top three Greek banks financing Greek shipping, achieving a 4.0% increase in its loan balances at the end of 2004 (€557.8 mn versus €536.4 mn in 2003).
Small and Medium-sized Enterprises and Professionals
During 2004 the dynamic growth of operations addressed to small and medium-sized enterprises (SMEs) has continued through both Piraeus Bank’s branch network (serving 20,000 customers) and alternative channels. Loans balances under this category grew surprisingly in 2004 and amounted to 35.0%.
Along with credit lines for medium-sized enterprises through the branch network, new products were developed specifically for small-sized enterprises and professionals, which belong to the "business" product family. At the same time, sectorial products promotion was intensified (through direct mail) and establishment of partnerships with different trades was continued (constructors, radio taxi owners, intercity coach owners, etc.).
Moreover, in the context of diversified services to SMEs, Piraeus Bank Group participated in the implementation of the 3rd Community Support Framework (CSF) for yet another year. Specifically, with regard to the SMEs Support Programme through the Regional Operational Programmes, Piraeus Bank received, evaluated and forwarded 16.5% of the submitted applications in 2004 (2nd declaration). It is noted that Piraeus Bank collected more applications than any other bank involved in this programme.
Development of alternative distribution channels Distriibution of new operations in 2004 by Piraeus Leasing SA
Piraeus Bank has put in place a special programme of co-operation with alternative 7.0%
networks for the promotion of products for individual customers and SMEs. It includes the 13.2% use of an innovative electronic platform (extranet), which allows for the submission of 40.8% applications via the Internet, so as to have an expeditious and precise monitoring of customer request, consequently, it ensures a high level of service standards. This
programme is supported by the 1,650 insurance advisers of ING, as well as by a multitude 14.5% of other agents.
24.5%
real estate machinery PIRAEUS LEASING SA passenger cars commercial vehicles
Piraeus Leasing SA recorded a 46.5% new leases growth (from €228 mn to €334 mn) in other equipment 2004, thus climbing to the second place in terms of size with a 15.0% market share.
25 PiraeusUK_1_26.qxd 13/04/05 14:39 “ Æ26
The company’s turnover in 2004 reached €201.0 against €181.3 mn in 2003 (+10.9%), while loans increased by 15.5% amounting to €715.3 mn. Profit before tax grew by 26.0% rising to €16.1 mn from €12.8 mn in 2003. Besides the major operations growth, the improvement of net interest rate margins and the containment of both operating cost and non performing debts contributed to the upkeep of high profitability.
Key Financial Figures of Piraeus Leasing SA Amounts in € millions
2004 2003 Change
Total assets 746.0 662.3 12.6% Loans 715.3 619.3 15.5% New leases value 334.0 228.0 46.5% Equity capital 155.8 152.9 1.9% Turnover 201.0 181.3 10.9% Profit before tax 16.1 12.8 26.0%
Piraeus Best Leasing SA
Piraeus Best Leasing is among the top three domestic companies operating in the dynamically growing sector of operating leasing of cars. In 2004, the number of new cars leased by the company rose amazingly by 41.0%.
The value of cars leased in 2004 amounted to €39 mn against €26 mn in 2003, i.e. increased by 49%. Managed cars (fleet size) numbered 5,400 units in 2004 against approximately 4,500 in 2003, showing an increase by 20%.
The company's figures recorded a similar growth, with the turnover rising to €30.5 mn (+32.0%), while net profit before tax amounted to €2.2 mn (+29.4%).
Key Financial Figures of Piraeus Best Leasing SA Amounts in € millions
2004 2003 Change
Total assets 10.6 9.2 15.2% Equity capital 4.5 3.1 45.2% Turnover 30.5 23.1 32.0% Profit before tax 2.2 1.7 29.4%
26 PiraeusUK_27_50.qxd 13/04/05 14:42 “ Æ27
Business Factoring – Piraeus Factoring SA
The Group operates in the business factoring sector through Piraeus Factoring SA. The company’s purpose is to help Greek businesses providing domestic, export and consumer factoring in all permissible forms (with or without reduction). It is also remarkable that, apart from liquidity financing, the company offers to businesses an integrated and specialized package of services ranging from corporate debt management and collection to credit risk insurance and improvement of financial condition, as well as on-going information about existing and new partners' solvency. The company is a member of the international organisation Factor Chain International (FCI) and co-operates with the most important factoring organisations abroad.
Key Financial Figures of Piraeus Factoring SA Amounts in € millions
2004 2003 Change
Total assets 184.3 152.2 21.1% Equity capital 16.1 15.7 2.9% Total interest and commission income 10.1 8.2 22.8% Profit before tax 0.7 0.5 55.9%
27 PiraeusUK_27_50.qxd 13/04/05 14:42 “ Æ28
MOTOR OIL HELLAS S.A. KORINTHOS REFINERIES Crude oil refining & treatment and oil products trading PiraeusUK_27_50.qxd 13/04/05 14:42 “ Æ29
E-BANKING (WINBANK, ATM)
Piraeus Group's e-banking service quality, via the Winbank electronic platform, remained firmly high as evidenced by the international rewards:
ñ in November, it was honoured with the "Highly Commended" distinction by the internationally famed "Banking Technology" magazine, obtaining the 2nd place in the "Best Online & Multi-Channel Banking Team" category, after Lloyds TSB and before Deutsche Bank, ñ for yet another year, it was honoured with the "Editor's Choice" and "Leading Performance" distinctions by the "PC Magazine" and "RAM" magazines, respectively.
The websites of Piraeus Bank came first in the established "Evaluate FTSE-20" survey, and were awarded the first prizes in the "Website Updatability" and "Technology" categories in the context of the "BANKeVAL 2004" survey conducted by the Economic University of Athens, which evaluated 16 Greek and 16 European banks.
The use rate of Winbank services continued to grow fast in 2004. As examples:
ñ active users of internet banking grew by 30%, visits by 35% and money transactions by 43%, ñ the call centre responded to 12% more phone calls and 85,000 more requests via internet, e-mail or fax, ñ Winbank alert users increased by 267% and active alerts grew by 184%, translated into more than 35,000 sms's and e-mails monthly, ñ out of the total financial transactions, a large part was executed via internet (20% of securities transactions, 58% of payments to social security system (IKA), 55% of VAT payments, 17% of payments for telecommunication services (OTE), 17% of money transfers within Greece, etc.).
In new service development and existing service improvement, Winbank has been very efficient in 2004:
ñ in co-operation with VISA EU, the pioneering Winbank Visa Direct was implemented (interpersonal payments to e-mail addresses and Visa cards) for the first time in Europe, ñ internet banking transactions security was enhanced with the introduction of extraPIN Unique Customers of Winbank (sending one-off passwords via sms to cell phones), 150,000 ñ the new mobile banking version was implemented, being fully operational via internet 130,000
(rather than wap) on appropriate cell phones and PDA's, providing a wide range of 120,000 113,000 transactions and possibilities. 97,000 90,000 73,000
The ATM network expanded by 84 units, currently reaching 449 of which 199 are off-site 60,000
and ATM transactions grew by 13.3% versus 2003. Moreover, in the framework of the 30,000 Olympic Games, the ATM network of Piraeus Bank enables transactions in three more 0 languages (French, German, Spanish) apart from Greek and English. Finally, customers 2004 2003 2002 2001 may now get their card-linked account statements via ATM.
29 PiraeusUK_27_50.qxd 13/04/05 14:42 “ Æ30
INTERNATIONAL ACTIVITIES
In the context of its strategic goal to expand and diversify its sources of income, Piraeus Bank Group promoted the geographic expansion of its activities in 2004 in both developed and -mainly- South-eastern European emerging markets. A pivotal point of the Group’s policy in these markets is focusing its efforts on retail and SMEs banking growth, which is anticipated to have major profit margins and growth prospects.
Implementing this policy in the Balkan area in 2004: ñ the network was expanded with the addition of 20 new branches (Albania 7, Romania 8, Bulgaria 5) to improve the geographic coverage of local markets, ñ retail banking products were developed, ñ specialized product and service companies were set up, and ñ the infrastructures (systems and procedures) of individual units were developed.
It is noted that in the beginning of 2005 the Group signed an agreement on the acquisition of 99.7% of the Bulgarian Eurobank, with a network of 48 branches and assets worth €220 mn, as well as 80% of the Serbian Atlas Banka, with a network of 9 branches and assets worth €63 mn. Such acquisitions will be completed upon necessary approvals of the competent supervisory authorities.
Deposits from customers Amounts in € millions
2004 2003 Change
UK – Piraeus Bank branch 34.7 47.5 -26.9% USA – Marathon Bank NY* 448.9 248.6 80.6% Romania – Piraeus Bank Romania SA 76.3 33.1 130.5% Albania – Tirana Bank IBC 219.5 175.0 25.4% Bulgaria – Piraeus Bank branches 60.9 30.7 98.4%
Total 840.3 534.9 57.1%
* 2003 deposits balance does not include the deposits of Interbank, which was absorbed by Marathon Bank in the beginning of 2004
Loans and advances to customers Amounts in € millions
2004 2003 Change
UK – Piraeus Bank branch 388.5 547.4 -27.7% USA – Marathon Bank NY* 270.9 168.4 60.9% Romania – Piraeus Bank Romania SA 163.9 110.7 48.0% Albania – Tirana Bank IBC 73.4 53.6 37.0% Bulgaria – Piraeus Bank branches 188.2 97.3 93.5%
Total 1,084.9 967.4 12.1%
* 2003 loans balance does not include the loans of Interbank, which was absorbed by Marathon Bank in the beginning of 2004
30 PiraeusUK_27_50.qxd 13/04/05 14:42 “ Æ31
All in all, 2004 was an important year for the Group’s international growth. The deposits of the Group’s units abroad increased by 57.1%, rising to €840.3 mn from €534.9 mn the year before. Total loans granted to customers by units of the Piraeus Bank Group abroad rose to €1,084.9 mn against €967.4 mn in the previous year, i.e. increased by 12.1%. Such loans and advances account for 8.6% of the Group's total loans and advances.
Moreover, in 2004, the Bank pursued its standard policy on expanding and improving the terms of correspondent banking, while supporting the business targets of its customer base, too.
In this context, the following were promoted: ñ optimization of the benefit arising from existing relations with credit institutions, ñ broadening of relations and co-operation with banks of new geographic regions (Central and Eastern Europe, Asia and Africa), ñ co-operation between banks from all over the world with the Group’s units in the Balkans for the offering of high quality services, and ñ full support of the total range of branch network operations as regards to collaboration with foreign credit institutions.
Piraeus Bank Branch in London
The activities of the London Bank branch include: ñ corporate customer service directed from Greece, and ñ search for investment opportunities in international markets (focusing on emerging markets), which are related to credit risk assumption with an efficient risk to return ratio.
In the search for new income sources, the branch has broadened the range of offered products, creating the following specialized products, which are aimed at meeting the needs of the relevant market segments: ñ mortgage loans for the purchase of residence in London, ñ deposits linked to credit-risk assumption, which offer higher return, thus improving the branch’s bond portfolio.
Piraeus Bank Branches in Bulgaria
Piraeus Bank started operating in Bulgaria in 1993; it was the first foreign bank in the country and mainly served Greek customers. Then, the Bank’s orientation changed, wishing to take advantage of investment opportunities, and targeted local customers as well, both individuals and SMEs.
In its endeavour to be a dynamic and promising institution on the local banking market, Piraeus Bank expanded its network adding 5 new branches in 2004, which currently number 13 in 10 cities, and broadened its range of new deposit and consumer credit products.
The year 2004 was particularly efficient with a major increase in the Bank’s financial figures, shares and profitability in Bulgaria. Specifically, loans increased by 93.5% amounting to €188 mn and deposits rose by 98.4% to €61 mn at the end of the year. It is noted that the loans market share of Piraeus Bank in Bulgaria at the end of 2004 reached 2.5% of the local market.
31 PiraeusUK_27_50.qxd 13/04/05 14:42 “ Æ32
MARATHON BANK OF NEW YORK
Marathon Bank mainly serves the banking needs of the Greek Community in New York, offering a wide variety of banking products and services to small enterprises and individuals. In 2004, Marathon Bank was strenghtened as a result of the acquisition and merger by absorption of Interbank New York, reaching a network of 10 branches in the greater region of New York.
The Bank focuses on personalized customer service through the development of strong customer relations. It offers a wide range of deposit and financing products with emphasis on mortgage loans for business premises.
Key Financial Figures of Marathon Bank Amounts in € millions
2004 2003* Change
Total assets 505.4 274.8 83.9% Customer deposits 448.9 248.6 80.6% Gross loans 270.9 168.4 60.9% Equity capital 45.2 19.1 136.6% Profit before tax 9.2 6.5 42.3%
Number of branches 10 6 66.7% Staff 129 73 76.7%
* 2003 figures do not include the figures of Interbank, which was absorbed by Marathon Bank in the beginning of 2004
TIRANA BANK IBC
Tirana Bank was founded in September 1996 and was the first privately owned banking institution in Albania. It currently holds a major position in the local banking market.
With a network of 22 branches covering 14 Albanian cities, Tirana Bank is constantly expanding its network aiming at being present all over the country. In 2004, the bank added 6 new branches and one agency, developed its ATM network, issued an international VISA debit card and launched other bank products / services, such as business payroll accounts, etc. In October 2004, Tirana Leasing SA was set up to offer leasing services in the context of a complete product range.
Total assets amounted to €249 mn at the end of 2004, increased by 27.0% against 2003. Loans rose by 37.0% to €73.4 mn and deposits by 25.4% to €220 mn. It is noted that Tirana Bank’s loans market share in Albania reached 13.3% at the end of 2004.
32 PiraeusUK_27_50.qxd 13/04/05 14:42 “ Æ33
Key Financial Figures of Tirana Bank IBC Amounts in € millions
2004 2003 Change
Total assets 249.1 196.2 27.0% Customer deposits 219.5 175.0 25.4% Gross loans 73.4 53.6 37.0% Equity capital 13.5 12.1 11.8% Profit before tax 3.4 2.8 21.4%
Number of branches 22 15 46.7% Staff 258 173 49.1%
PIRAEUS BANK ROMANIA SA
Piraeus Bank Romania was set up in 1995 (as Pater Credit Bank) and was integrated into Piraeus Bank Group in 2000. In 2004, Piraeus Bank Romania maintained its growth rate by re-organising its head office services, offering new deposit and consumer credit products and expanding its network, which counted 14 branches in 10 cities at the end of 2004.
The efforts were crowned with success, as deposits with Piraeus Bank Romania increased by 130.5% on an annual base in December 2004, amounting to €76.3 mn, loans grew as well by 48.0% reaching €163.9 mn. It is noted that the loans market share of Piraeus Bank Romania reached 1.7% of the local market at the end of 2004. The Group considers Romania to be a country with great growth outlook in banking and intends to offer a complete banking service range.
Since 2003, Piraeus Leasing Romania SA, a leasing company, has been operating in Romania recording a major growth of its figures. In 2004, its total assets rose to €33.9 mn from €15.7 mn in 2003, increased by 148%, while total loans amounted to €21.8 mn, increased by 59%.
Key Financial Figures of Piraeus Bank Romania SA Amounts in € millions
2004 2003 Change
Total assets 262.1 176.1 48.8% Customer deposits 76.3 33.1 130.5% Gross loans 163.9 110.7 48.0% Equity capital 23.8 21.7 9.7% Profit before tax 2.1 2.2 -3.0%
Number of branches 14 6 133.3% Staff 215 140 53.6%
33 PiraeusUK_27_50.qxd 13/04/05 14:42 “ Æ34
GRECOTEL GROUP Hotels PiraeusUK_27_50.qxd 13/04/05 14:42 “ Æ35
INVESTMENT BANKING
Capital Market Operations
Piraeus Bank provides underwriting and consulting services throughout the capital market product spectrum.
Thanks to its broad branch network and contacts with major institutional investors, in 2004 Piraeus Bank was once again ranked at the top places having participated in all IPO’s effected during the year, as either principal underwriter or underwriter.
In the context of innovative product development, Piraeus Bank was the first and only bank to introduce Hellenic Certificates to the Greek Market of Emerging Capital Markets (E.AG.A.K.), paving the way in a market which had remained inactive since its institution. It is also the only Bank actively promoting the inception of a Real Estate Investment Company in the Athens Stock Exchange, Piraeus Real Estate πnvestment Property SA.
In the consulting sector, Piraeus Bank continued its successful course in 2004, acting as a consultant in company acquisitions, mergers and valuations, as well as new listings of companies in the Athens Stock Exchange, share capital increases, resumption of company stock trading in ATHEX and bond loan issues. It is also worth noting that in 2004 Piraeus Bank acted as a consultant, dealing successfully with the most aggressive takeover proposal of the last 5 years (Metal Industry of Arcadia X.Rokas SA), and as Dixons tender agent for the company’s proposal to take over P.Kotsovolos SA.
Stock Exchange Operations - Piraeus Sigma Devletoglou Securities SA
Sigma Securities SA is one of the first securities companies that joined the Athens Stock Exchange upon its institution in 1990. Its leading position on the market was further reinforced in 2004 through the merger by absorption of N.D.Devletoglou Securities, one of the largest and oldest members in the sector. The merger was completed in December 2004, forming Piraeus Sigma Devletoglou Securities SA.
The company’s network includes 4 branches in large cities throughout the country (Thessalonica, Patras, Heraclion and Serres), 43 associated brokerage offices (named EPEY/AELDE), as well as the entire network of Piraeus Bank’s branches. Additionally, the company works with the majority of Greek and foreign institutional investors who are active in the domestic market.
In 2004, the trading value at the Athens Stock Exchange recorded a marginal increase compared to the previous year. Piraeus Sigma Devletoglou Securities, leading a more dynamic course, managed to increase its trading value by 24.4% rising to €6,513 mn. The company was ranked 4th in terms of total trading operations with a market share of 9.1%.
In all individual derivatives markets, the company maintained its leading position, as a result it doubled its income from this activity. It is typical that it conquered the 1st place in the relevant ranking with an options market share of 21.95% in the mid-cap index
35 PiraeusUK_27_50.qxd 13/04/05 14:42 “ Æ36
FTSE/ASE-Mid 40. At the same time, the company’s Foreign Markets department achieved a turnover six times higher than in 2003, from €43.7 mn to €260 mn serving a broad client base.
In 2004 net profit before tax grew by 37.5% compared to 2003 amounting to €4.8 mn.
Key Financial Figures of Piraeus Sigma Devletoglou Securities SA Amounts in € millions
2004 2003* Change
Total assets 179.0 133.3 34.3% Equity capital 44.7 31.7 40.9% Turnover 20.8 21.8 -4.6% Profit before tax 4.8 3.5 37.5%
* 2003 figures do not include Devletoglou Securities, which was absorbed in December 2004
Custody Operations
With regard to custody operations, efforts were continued in 2004 in order to further expand its activities, increase productivity, cut down on operating expenses and offer higher quality customer services.
Custody operations commissions’ income raised in 2004 compared to 2003, despite the decrease in the number of Greek institutional investors. Moreover, the offering and support of all the products of domestic capital market (bonds, equities and derivatives), as well as international capital markets, successfully continued, with total assets under management portfolio of €4.9 bn.
In 2004, Piraeus Bank put in place integrated systems to support new services, such as: ñ issue of ªermeren Kombinant Skopje Hellenic Certificates, which was the only foreign company on the Greek Market of Emerging Capital Markets (E.AG.A.K.), ñ public offerings, ñ capital repatriation, ñ dividend payment via Dematerialised Securities System traders, and ñ support of new derivative products.
Finally, it is worth noting that Piraeus Bank provided custody services to all Western and Eastern European markets, as well as in the USA and Asia, with an increasingly higher transactions volume and portfolio value (62% compared to 2003).
Shareholdings – Participations
In 2004, the Bank successfully restructured a major part of its shareholdings portfolio, reinforcing its position in the financial sector activities. In this framework, the Bank
36 PiraeusUK_27_50.qxd 13/04/05 14:42 “ Æ37
increased its holdings in Marathon Bank, Piraeus Leasing SA, Piraeus Multifin SA, Piraeus Factoring SA and Hellenic Investment Company SA. On the contrary, it cut down on its positions in trading portfolio companies, implementing its policy on assumed risk limitation and invested capital efficiency improvement.
Specifically in 2004: ñ the absorption of Interbank New York into Marathon Bank, the Bank’s subsidiary, based also in New York, was completed. The purpose of this absorption was to take advantage of the two banks’ networks complementarity, as well as Interbank’s specialisation in commercial mortgage and retail banking, ñ the merger by absorption of Devletoglou Securities SA into Sigma Securities SA was also completed. This merger resulted in the enlargement of the customer base, increase in the market share and utilization of economies of scale, ñ the merger of Piraeus Insurance Agency SA and ETBA Insurance Agency SA was effected by absorption of the latter by the former, and ñ the Bank absorbed its subsidiaries Piraeus Finance SA, Piraeus Investment Consulting SA and Piraeus Equities Holding SA.
37 PiraeusUK_27_50.qxd 13/04/05 14:42 “ Æ38
KLEEMANN HELLAS S.A. Complete Lifting Systems and Parts Industry PiraeusUK_27_50.qxd 13/04/05 14:42 “ Æ39
ASSET MANAGEMENT
Total assets under management by Piraeus Bank Group amounted to €12,746.1 mn at the end of 2004, compared with €11,719.3 mn at the end of the previous year, recording an increase of 8.8%.
Assets Under Management Amounts in € millions
2004 2003 Change
Deposits and ∂∆µ∞ bonds 10,665.6 9,152.9 16.5% Repos 648.8 1,248.9 -48.1% Assets under management (M/F excluding money market funds, closed - end fund, private banking) 1,431.7 1,317.5 8.7%
Total 12,746.1 11,719.3 8.8%
In the area of asset management, Piraeus Bank Group operates through ING Piraeus Asset Management company, which is a joint venture with ING, bringing to the Group international know-how and a variety of investment products, thus enabling it to increase its market share.
At the same time, Piraeus Bank Group operates in the area of closed-end funds through Hellenic Investment Company SA, which is the largest domestic portfolio investment company.
Treasury
The course of action for the Treasury of Piraeus Group was the fruitful attempt to broaden and extend financing sources, as well as the increase in regulatory capital for the support of the Group’s rapid growth rate.
In this direction and in addition to the existing short-term securities programme Euro Commercial Paper (ECP), a medium term bond issue programme Euro Medium Term Note (EM∆¡) was set up, enabling immediate bond issues of various types and maturities, when deemed required for fund-raising from international markets.
Taking advantage of the favourable market conditions and EMTN capabilities, the Bank proceeded to two successive senior and subordinated bond issues totalling €750 mn. Then a Schuldschein agreement was signed for the amount of €150 mn, mainly targeting the German market. The year ended with the issue of a hybrid bond, which attracted Tier I funds amounting to €200 mn.
At the same time, ECP issues were actively offered to foreign institutional investors, as a result total securities outstanding exceeded €800 mn.
Apart from the amount and term of raised liquidity, it is equally important to note the increase in regulatory capital by €600 mn and the creation of Piraeus Bank benchmark bonds in international capital markets, which were highly dispersed as indicated by the
39 PiraeusUK_27_50.qxd 13/04/05 14:42 “ Æ40
large number of investors and high absorption rate (60%) by foreign institutional investors.
Debt Securities in Issue Amounts in € millions
2004 2003
Euro Commercial Paper (ECP) 836.7 223.3 Senior Debt (∂ª∆¡) 337.6 - Lower Tier ππ (∂ª∆¡) 388.9 - Hybrid Tier π (hybrid capital) 193.6 -
Total 1,756.8 223.3
Treasury, in co-operation with other Bank units, created, promoted and managed a large number of new products, composite investment products, as well as interest-rate and FX risk hedging products.
Piraeus Bank maintained its leading position in the bonds market, participating as a syndicated issues underwriter for the Greek Government and other issuers, totalling €18.5 bn. In the Greek Government bond market, the Bank further strengthened its presence taking the 3rd place among the 19 primary dealers.
In the money markets, Treasury has undertaken intensive interbank activity assuming interest-rate positions, and maintained the close monitoring and management of the other Bank assets and liabilities as a top priority in order to safeguard profitability. In the foreign exchange market, the large variations of the main exchange rates allowed for high profits through the assumption of relevant interbank position.
Private Banking
High standard private banking services were kept up in 2004, too, for those customers who wish for a personal relationship with the Bank, as well as flexible and confidential investment and asset management. In the course of the past year, the customer base of Private Banking grew significantly, not only among the existing customers of the broad branch network of the Bank, but also attracting customers who had not had previous relation with the Bank.
Total funds under management at the end of 2004 amounted to €271 mn, increased by 71%, spread in all investment types and international markets. A similar 50% increase was recorded in the number of customers.
In line with the Bank's long-term business strategy, which is based on the increased geographic coverage, a new Private Banking unit was set up in Thessalonica in January 2004, in order to provide services to its customers in Thessalonica and selected customers in Northern Greece at large.
40 PiraeusUK_27_50.qxd 13/04/05 14:42 “ Æ41
HELLENIC INVESTMENT COMPANY SA
Hellenic Investment Company is the first such company in Greece and has been listed in the Athens Stock Exchange since 1973.
The efficient investment choices made by the company, coupled with the positive trend of the domestic and international stock markets, led to a growth of its financial figures. Thus, the company closed the financial year 2004 recording profit before tax amounting to €62.9 mn versus €21.9 mn in 2003, net asset value at current prices as of 31.12.2004 amounted to €450.8 mn versus €398.2 mn on 31.12.2003.
Key Financial Figures of Hellenic Investment Company SA Amounts in € millions
2004 2003 Change
Profit before tax 62.9 21.9 >100.0% Total book value 416.2 387.9 7.3% Investments surplus value (at current prices as at 31.12.04) 8.3 10.3 -19.4%
ING PIRAEUS ASSET MANAGEMENT SA
ING Piraeus Asset Management manages 12 domestic Mutual Funds (M/F), and offers additionally 90 international M/F on the Greek market. Total Mutual Funds managed/ offered by the company rose to €933 mn at the end of 2004 from €831 mn in 2003, recording an increase by 12.3%.
Specifically, the assets under management of the domestic M/F amounted to €757 mn in 2004, accounting for approximately 2.4% of total market assets. The company offers 56 international M/F of ING Luxembourg and 32 M/F of Goldman Sachs, along with 2 M/F of Piraeus Asset Management Europe SA, with assets totalling €176 mn in 2004; it also manages €38 mn of other institutional investors.
Mutual Funds Net Assets Value Amounts in € millions
2004 2003
ING Piraeus (domestic M/F) 757.3 717.1 ING Luxembourg, Goldman Sachs, Piraeus A.M. Europe (international M/F) 176.2 114.3
Total 933.5 831.4
41 PiraeusUK_27_50.qxd 13/04/05 14:42 “ Æ42
REAL ESTATE DEVELOPMENT AND MANAGEMENT
In recent years, the Group has developed activities in the Real Estate sector, aiming at taking advantage of investment opportunities and synergies available on the real estate market. This activity offers new growth potential for a large number of banking products and services, such as leasing. In this framework, the Group's activities in the real estate sector continued to expand in 2004.
PIRAEUS REAL ESTATE SA
The listed on ATHEX company provides a broad range of services in the real estate area (development, use, management, consulting, etc.). The company has a principal holding in Piraeus Real Estate Investment Property SA amounting to €46.1 mn. Moreover, the company owns a land plot near Thessalonica port, as well as a car parking station of 600 places in Maroussi, Attica. In 2004 the company bought indiviso with two other companies a land plot in Agios Stefanos, Attica, covering an area of 47.600 m2, for house development purposes.
Key Financial Figures of Piraeus Real Estate SA Amounts in € millions
2004 2003 Change
Total assets 65.7 63.6 3.3% Equity capital 61.6 53.6 14.9% Turnover 3.0 8.0 -62.5% Profit before tax 2.9 2.2 31.8%
PIRAEUS REAL ESTATE INVESTMENT PROPERTY SA
Piraeus Real Estate Investment Property SA is the first institutional real estate investment organization in Greece which operates under the special investment Law 2778/1999, taking advantage of significant tax benefits. In March 2003 the company received its operation license from the Capital Market Commission, while the Board of the Athens Stock Exchange has already approved the listing and public trading of the company. The company owns 27 business real estates located within or adjacent to large urban centres of Greece (Athens, Thessalonica, Volos, etc.), which are leased to solvent lessees. The current value of such fixed assets, according to the valuation of Chartered Valuers as of 31.12.2004, amounts to €62.4 mn.
Key Financial Figures of Piraeus Real Estate Investment Property SA Amounts in € millions
2004 2003 Change
Total assets 51.8 48.1 7.7% Equity capital 40.6 39.8 2.0% Turnover 8.6 13.5 -36.0% Profit before tax 7.3 7.1 2.8%
42 PiraeusUK_27_50.qxd 13/04/05 14:42 “ Æ43
PICAR SA
Following a relevant tender, the company was awarded the commercial operation and management of the Army Pension Fund Building based on a long-term contract (expiring in 2049). The Building covers the entire block delimited by the Stadiou-Voukourestiou- Panepistimiou-Amerikis streets-a total area of 65,000 m2- and is intended to operate as the first modern complex in the Athens city centre of high technical, functional and aesthetics standards; it will house a department store of a total area of 24,500 m2, theatres, restaurants and various shops. The refurbishment of the Building has entered its final completion stage, and it is estimated that the department store will start operating in the end of the 1st half of 2005, while all the other facilities (shops, restaurants, offices, gym, etc.) will be operational in autumn 2005.
ETBA INDUSTRIAL AREAS SA
The activity of this company is a direct intervention in the country’s regional development and environment protection, as its main scope includes the establishment, organisation, operation and management-administration of structured industrial areas as well as search for financing sources in order to ensure funding for infrastructure development and improvement. The company already manages 32 industrial areas and parks in prefectures of Greece, where approximately 2,500 businesses operate and almost 40,000 people are employed, evidencing the significance of these areas for the Greek industry and economy.
Moreover, the company has accumulated knowledge of and experience in environment management helping it implement E.U. financed projects (e.g. SMILE, LIFE). Moreover, it provides technical consultant services for the design or construction of special or general purpose buildings, road projects, fresh water, rainwater, waste water and power lighting systems, biological treatment units, projects of the Workers’ Housing Organisation., etc.
In 2004, the company’s structure and operation were re-organised based on a new organization chart, it set up an integrated information system, created projects and studies regulations and established a sales system, too. At the same time, it acquired VIPETBA (project manager of all ∂∆µ∞ Industrial Areas SA tasks), which will be merged through absorption in 2005.
43 PiraeusUK_27_50.qxd 13/04/05 14:42 “ Æ44
TECHNOLOGY AND INFRASTRUCTURES
The effort to improve the Bank’s technological infrastructure was pursued in 2004 for the purpose of better and higher quality customer service. In this context, a series of new systems was developed and installed in various business units, and existing systems were extended and improved significantly. The modernization and simplification of internal structures and operating processes are mainly intended to cut down on costs and enhance efficiency and productivity.
Infrastructures Systems
The advanced "SafeGuard" system for fraud detection and prevention, mainly affecting credit and debit cards sectors, was installed in 2004. The system collects real-time all the transaction data from the bank’s ATM and POS and evaluates them based on the established rules for eventual fraud identification.
Moreover, a new anti-money laundering system was developed and put in place to monitor and detect "suspicious transactions" for money laundering.
In the same year, the Bank’s CRS data bank was optimized, non-performing loans management system was refined and credit card operations were automated. To ensure improved customer services at branches handling large transaction volumes, a modern customer queuing system (¡∂ª√-Q) was studied and implemented in pilot branches.
Moreover, an appropriate mobile phone card automatic renewal system was developed and put in place via the innovative Diasdebit-Online. The Bank’s POS network was strengthened with 4,000 new points currently numbering 17,000 POS. It is worth noting that more than 5,000 POS have been upgraded to execute EMV transactions, thus improving the provided security standard.
Finally, the Group’s subsidiary Tirana Bank in Albania developed an ∞∆ª network and issued debit cards. This network centrally supported by the ATM management system of Piraeus Bank in Greece, thus enabling debit cardholders of Tirana Bank to perform transactions both in Greece and Albania.
Work-flow simplification
To improve the Bank’s internal operation, I-Perform, a workflow support system was implemented. I-Perform allows integrating complex operations involving multiple units and various information systems into a single automated flow, thus improving completion times. Additionally, the platform produces reports and performance indicators. Based on I-Perform a study was conducted on the automation of consumer and mortgage loans approval procedures, being the spear-head of the Bank’s product range.
Applications processing, credit profile data control and performance indicators generation procedures at the approval centres were restructured and automated for the dual purpose of achieving competitive customer application approval times and safeguarding the Bank against financial risks.
44 PiraeusUK_27_50.qxd 13/04/05 14:42 “ Æ45
Fund Transfer and Payments Systems
Maintaining the excellence of payment systems, constantly adjusting to the market and regulatory demands and adopting modern technologies are the firm goal of Piraeus Bank in the fund transfer field.
In 2004, the variable operating cost was substantially reduced, thanks to the fruitful completion of the projects at the end of 2003. As a result there was a major boost in electronic payments (Winbank, electronic-Piraeus Payment System/e-PPS), especially for mass payments in Greece and abroad, recording a sensational 241% increase versus 2003.
The sale of intermediary services to foreign banks was further intensified in 2004, allowing an increase in operations volume by 123% compared to 2003. Similarly the express money transfer service MoneyGram recorded an operations growth of 29%.
In the course of the past year, the Bank’s payment systems were upgraded and integrated into STEP2 of the European Bankers Association, ensuring participation in Pan European
45 PiraeusUK_27_50.qxd 13/04/05 14:42 “ Æ46
Automated Clearing House (PEACH) at a low cost per payment. It is noted that the Bank also participates in STEP 1 clearing system since 2002.
Finally, a major event was the "Straight-Through Processing (STP) Excellence Award" with which Deutsche Bank honoured Piraeus Bank.
∞µC PROFESSIONAL SERVICES SA
In 2004, ABC Professional Services pursued its investment in new product and state-of- the-art technologies, establishing appropriate infrastructures to successfully implement its business plan. Hence, the company brought to completion its Card Processing Centre, for (debit, credit, affinity/loyalty and smart) covered by Visa International and MasterCard, and successfully integrated Piraeus Bank credit cards therein.
Specifically, in the course of the previous year the company: ñ completed the certification of the Card Customisation Centre facilities, in order to meet the security standards of VISA and MasterCard, ñ extended the ATLAS e-business engine platform, completing its installation in a Greek bank and signing new contracts with banks, and ñ proceeded to the implementation of two pioneering projects on loyalty schemes based on the product Merit Loyalty Suite.
46 PiraeusUK_27_50.qxd 13/04/05 14:42 “ Æ47
RISK MANAGEMENT
The Management of Piraeus Bank has placed special emphasis on the development of an effective risk management framework, which sets the conditions for safe growth, limits adverse profit variations and contributes towards the effective allocation of the Bank’s capital.
An independent Risk Management Department and an Asset and Liability Committee (ALCO) operate within Piraeus Bank, with the mandate of monitoring the organisation's activities and maintaining risk levels within predefined limits. The Committee members meet on a monthly basis, in order to review market developments and the level (amount) of financial risk exposures of the Bank and its subsidiaries.
The Bank’s risk management system, Risk-Pro, an integrated risk management system provided by the Swiss company IRIS, has been operating since the beginning of 2002. Currently the system covers 99% of the Group's financial activities and provides an assessment for market and liquidity risks analysis, in addition to monitoring credit exposures.
The new capital adequacy framework known as Basel II, is a priority project for Piraeus Bank, with an expected effective date of December 31, 2006. Since the beginning of 2003, the Basel II committee has been working towards the development of an appropriate infrastructure to facilitate the Group’s compliance with Basel II requirements. The existing integrated risk management system already supports capital requirement calculations in line with those stated in Basel II. At the same time, new applications are being developed, such as loan performance historic bases, loans collateral monitoring systems, debtor credit line monitoring and credit rating systems, which are necessary components for the implementation of the new framework.
Market Risk Management
Market risk refers to the possibility of incurring losses due to fluctuations of market prices, such as share prices, interest rates or currency exchange rates. Piraeus Bank is not exposed to commodities price risk. Piraeus Bank applies modern and widely accepted
Value - at - Risk 5,000 4,500 4,000 3,500 3,000 2,500
Th. EUR 2,000 1,500 1,000 500 0 4/30/2004 5/31/2004 6/30/2004 7/31/2004 8/31/2004 9/30/2004 1/31/2004 2/29/2004 3/31/2004 11/30/2004 12/31/2003 10/31/2004 12/31/2004
Fixed Income Interest Rate Risk Banking Book Interest Rate Risk FX Risk
market risk analysis techniques, such as Value-at-Risk (VaR), Earnings-at-Risk, Stress Tests results and Sensitivity Indicators.
47 PiraeusUK_27_50.qxd 13/04/05 14:42 “ Æ48
Piraeus Bank applies the Risk Metrics parametric methodology for Value-at-Risk with one- day holding period and 99% confidence interval.
Since the beginning of 2003, a Group Market Risk Management Policy has been adopted. According to this Policy, specific market risk limits have been set for each business unit of the Group and they are followed up systematically. With regard to interest-rate risk in particular, it is the standard practice to hedge bond and fixed-rate loan positions by derivatives positions, such as interest-rate futures and swaps.
Liquidity Risk Management
Liquidity risk management focuses on the Bank's ability to maintain sufficient liquidity in order to meet its transactional obligations. Liquidity management involves systematic monitoring of future liquidity requirements and relevant funding needs per currency, depending on the maturity of balance sheet items.
Since the end of 2003, a Group Liquidity Risk Management Policy has been adopted. This Policy deals with the liquidity needs expected to emerge in a week's and month's time, in the case of a hypothetical liquidity crisis.
Credit Risk Management
Apart from growth in volume, Piraeus Bank also aims at constantly upgrading the quality of its credit portfolio. The Corporate Credit and Consumer Credit Divisions are constantly monitoring the Bank’s credit portfolio, in order to ensure that credit risk is maintained at satisfactory levels.
With regard to corporate loans, interbank loans and sovereign loans , Piraeus Group applies a common policy for credit limit evaluation, approval, renewal and monitoring of credit exposures.
During the approval procedure, total credit risk is assessed per debtor or group of associated debtors (One Obligor Concept), taking into consideration the total credit limit that the client has assigned at Group level. The Corporate Credit Division has the principal task of evaluating the borrowers' creditworthiness and the risks entailed to granting credit; it is also actively involved in the design of the credit policy, systems and procedures for credit risk management.
Since mid-2004, the "Moody’s Risk Advisor" system started being used with the purpose of evaluating the credit quality of corporate borrowers, using such variables as financial results and industry analysis. In addition, through the new ‘Loan Origination System’ the credit limit approval process is being more effectively monitored.
In 2004, an automated collateral monitoring system was developed integrating the relevant standards stipulated by the new Basle II regulatory accord. The new monitoring system is expected to go live in early 2005, greatly enhancing the Bank’s ability to monitor its exposure versus the collateral being held.
48 PiraeusUK_27_50.qxd 13/04/05 14:42 “ Æ49
With regard to personal loans, Piraeus Bank places emphasis on the implementation of modern credit risk management methods. The monitoring of credit risk for consumer and personal loans consists of the analysis of the credit scoring procedure parameters, the portfolio structure, the population distribution of debtors and the monitoring of doubtful loans. The ability to extract and utilise four-year historical data has allowed the assessment of probability of default and the loss given default rates, two of the basic parameters for the implementation of Basel II framework.
Since 2002, new credit rating models (scorecards) have been applied for consumer loans and credit cards. The new models have helped in the systematization of the approval procedure and risk-controlled growth of the relevant loan portfolios. In 2004 a new scorecard was developed and launched for car loans managed by the subsidiary Piraeus Multifin SA.
It is noted that the Group’s non-performing loans accounted for 3.91% of total loans in 2004 versus 3.98% in 2003, recording one of the highest cover ratios from accumulated provisions in the Greek banking market (85.3%).
Operational Risk Management
Operational risk is considered by Piraeus Bank as one of the major sources of risk. The relevant units of the Bank take all required actions to limit the impact of legal risks, natural disasters or cases of inadequate procedures and/or information systems. The Bank relies on the quality of its human resources, technological infrastructure, internal audit function, and the use of insurance policies in order to minimise losses due to operational risk. Insurance coverage pertains to Banker Blanket Bonds, Group assets insurance policies, or house insurance policies associated with mortgage loans.
Special emphasis is placed on security issues, with the adoption of the new IT systems security policy framework, in addition to new security features for the Bank’s e-banking activities. Since 2003, the Business Continuity/Disaster Recovery Site for the Bank's central information system has been in place, thus minimizing the risk of any prolonged interruption in the Bank operations.
A project for the development and design of the Bank’s operational risk framework was launched in 2004, according to the directives of the new Basle Committee regulatory accord. The year 2005 will be dedicated to the design and implementation of this framework, so that a systematic operational risk assessment process should be in place for the Group within 2006.
49 PiraeusUK_27_50.qxd 13/04/05 14:42 “ Æ50
KARAMOLEGOS S.A. Bakery Industry PiraeusUK_51_76.qxd 13/04/05 14:45 “ Æ51
HUMAN RESOURCES
At the end of 2004, Piraeus Bank Group employed 5,358 people against 4,896 in 2003, Allocation of total human resources in the Group recording a 9.4% rise. Total
6,000 Bank 5,358 Subsidiaries The staff employed with the Bank numbered 4,191 people, while the subsidiaries’ staff 5,000 4,896 4,191 numbered 1,167 in 2004. 3,996 4,000
3,000 In the context of human resources restructuring, Piraeus Bank applied a voluntary 2,000 retirement scheme in 2004. 93 members of the staff made use of the scheme, which was 1,167 1,000 900 later repeated in the beginning of 2005 when 124 more people retired by the end of 0 February 2005. 2003 2004
Allocation of human resources per gender
Gender allocation in the Group is well balanced with a slight dominance of women (51.4%) versus men (48.6%). This high female gender representation corroborates the equal opportunities policy adopted by the Piraeus Bank Group.
Allocation of human resources per age
The average employee age was 36.2 years in 2004 compared with 35.4 in 2003, executive staff average age Group-wide was 42.3 years in 2004 compared with 41.5 in 2003. These averages coupled with the high educational level, enable the Group to adopt new technologies fairly easy, assimilate environment changes quickly and provide immediate solutions to new customer requirements.
Allocation of human resources per education standard
Diploma and degree holders (college, university, post-graduate and doctorate studies) account for 53.8% of all employees compared with 46.2% of secondary education graduates. There was a major increase in post-graduate degree holders by 8.3% compared to 2003. This development reflects the importance attached to the attraction of people with high educational standards and expert knowledge, and the on-going pursuit for highly educated employees to be main asset and high added value factor of the Group.
Allocation of human resources per geographical area
Out of the Group’s total human resources 49.9% are employed in the Attica region, 14.6% in Thessalonica region, 20.7% in the rest of Greece and 14.8% abroad.
Employment - Retirement
The primary objective of Piraeus Bank Group is to attract and retain high standard human resources who are professional, highly responsible, result oriented, team workers, initiative takers, hard working and interested in learning and developing. In 2004, 864 people were hired and 416 retired, including 93 people who made use of the voluntary retirement scheme.
51 PiraeusUK_51_76.qxd 13/04/05 14:45 “ Æ52
Social Policy Statement
The social policy applied mainly aims at the increasing improvement of the well-being standards of the Group’s staff. Such policy includes a series of additional provisions and benefits, such as full coverage of the group insurance scheme premiums (hospital- medical care, life insurance-accident and permanent total disability insurance), nursery costs, rewarding scheme for employees’ children who study, additional days of leave in case of child sickness or hospitalisation, special one-off benefit for employees who have more than 3 children.
Total staff expenses at Group level in 2004, amounted to €191.1 and are broken down as follows:
Wages and salaries € 144.8 mn Social insurance charges € 32.1 mn Other charges € 14.2 mn
Other charges include the cost of medical care, employees’ insurance with death and Allocation of Man Hours permanent disability coverage (Group Insurance Scheme), executive staff preventive per Training Type check-up, as well as expenses for nursery schools, gifts to the children of employees, 6% 7% 8% employer’s contributions other than insurance funds, etc.
Training
36% In 2004 the primary target of training activities was to upkeep the strategy of balanced
36% investment in reinforcing the entrepreneurship and financial knowledge of the executive staff.
Last year, a total of 689 training course were held in Greece and abroad (in-house and 7% external), accounting for 122,396 training man-hours, increased by 45.5% compared with Financial Knowledge Banking Information Systems 2003. Entrepreneurial skills Customer Service Quality Expert Technical Personal and Knowledge Management Skills Extensive use of e-learning was also made in 2004, thus cutting down on cost per training man-hour and adding major benefits for trainees. Participation in e-learning courses within
Allocation of Man Hours Piraeus Bank numbered 3,088 in 2004, accounting for 44% of total training man-hours in per Means of Training the Bank.
150,000 It is, also, worth noting that, in the context of the on-going pursuit for the development of 122,396 120,000 thorough financial consultants, the planning and implementation of Certification 90,000 84,123 Schools/Programs is continued and intensified. Currently, there are three such Schools
60,000 in operation aiming at distinct roles and experience levels.
30,000 In 2004, Piraeus Bank Group continued its highly successful support and development 0 2003 2004 program for young managers, financing the participation of 37 selected individuals in graduate and post-graduate courses. Classroom e-learning
Finally, emphasis was placed once again on the organisation of customised training and job rotation programmes. There were 119 individual programs and had an average duration of 120 hours in 2004.
52 PiraeusUK_51_76.qxd 13/04/05 14:45 “ Æ53
Promotion and Career Development
In 2004, the implementation of the available skills use and development project was continued aiming at filling new jobs emerging in the Group companies mainly with existing staff. Thus, 74% of 122 announced vacancies were staffed from within the Group, and 26% through external selection.
Introduction of an Innovative HR Management System
In 2004 the integrated human resources management system (HRMS) was put in operation. The system supports hiring, training, development, evaluation, skills management, compensation and benefits areas. It is one of the best internationally and launches an innovation in the Bank’s human resources sector.
Business Excellence Program
Following the 5 Bank Divisions that were presented with the EFQM "Committed to Excellence" award in 2004, Piraeus Bank consistently kept moving towards Business Excellence, introducing 3 more business units into the first EFQM certification level, namely: Internal Audit, IT & Organisation, and Fund Transfer & Central Operations Divisions.
53 PiraeusUK_51_76.qxd 13/04/05 14:45 “ Æ54
The introduction of the EFQM business excellence model into Piraeus Bank has already brought major benefits to the Organisation, as it mobilises the Bank towards on-going improvement and growth through an integrated approach.
Alignment of corporate and individual goals
Aiming at maximizing efficiency and employee satisfaction, a modern method of balanced target-setting between the Human Resources Unit and the Bank, the Balanced Scorecard, was designed and implemented in the Unit. Based on the Balanced Scorecard, concrete and measurable targets were set on both quantity and quality criteria, so that employee performance and contribution to business results can be clear and easily measured.
The strategy is translated into simple terms, setting the conditions for positive response to its implementation, while the contribution of each department/person to the Bank’s "value creation chain" is made clear.
Social contribution
In 2004, Piraeus Bank was once again actively involved in the promotion of the research work performed in the academic community, transferring know-how on a series of subjects, by taking part in research and offering practice opportunities to students, it thus contributes to the establishment of links between education and labour market.
Moreover, in the same year, the Bank maintained its close collaboration with the therapeutic community NOSTOS, allowing people at their social reinclusion stage to be trained in computer operation, so as to obtain skills required for better job opportunities.
Equal Opportunities Policy
Piraeus Bank Group pays particular attention to its equal opportunities policy, as well as prevention of any racial or other discrimination through the human resources policies.
All procedures, actions and policies of the Group which pertain to Human Resources are designed on the basis of equal opportunities principles and enable everybody-without any discrimination on the basis of gender, nationality, physical ability, age, sexual preference or religion-to make use of and enjoy equal opportunities.
Health and Safety at the Workplace
Health and safety at the workplace is a critical issue and a top priority of the Management. Piraeus Bank Group has catered for the creation and maintenance of a modern and safe work environment, according to legal framework in force, which reflects the high service standards, which are sought to be provided to both its customers and its human resources. The close and substantial co-operation with Labour Doctors and highly trained Safety Experts in work and Bank safety ensures optimum results in the best possible manner.
Collective Representation
Almost the all employees are represented by the 4 unions, the most representative of which is recognised as the competent body for bargaining with the Management.
54 PiraeusUK_51_76.qxd 13/04/05 14:45 “ Æ55
CORPORATE GOVERNANCE
Piraeus Bank, aiming at the constant reinforcement of its value and the protection of its corporate interests, has fully applied to institutional framework in force regarding corporate governance. Thus: ñ it possesses an "Internal Operation Manual", which reassures transparency and symmetrical information, covering issues that are not provided for in the Bank’s Articles of Association and are necessary for its smooth operation, ñ it has established a well organised internal audit system with assigned responsibilities, consisting of the Audit Committee and the internal audit unit (Internal Audit Division), which are independent and report straight to the Bank’s supreme management, ñ it has adjusted the composition of the Board of Directors (BoD), so as to comply with what is applicable concerning executive and non-executive members, ñ it has organised Investor Relations Unit, Shareholder Registry Service and Corporate Announcement Service, having the responsibility to inform investors, shareholders and supervisory authorities respectively.
∞. SUPREME MANAGEMENT BODIES
The supreme body of Piraeus Bank is the General Assembly of its Shareholders. The Board of Directors is made up of fifteen (15) members, three (3) executive and twelve (12) non-executive. Three (3) of the non-executive members are also independent according to law in force.
BOARD OF DIRECTORS
Executive Members
Michalis G. Sallas, Chairman and Managing Director Michalis H. Colakides, Vice Chairman and Deputy Managing Director Theodore N. Pantalakis, Vice Chairman and Deputy Managing Director
Non Executive Vice Chairmen
Konstantinos P. Angelopoulos, Economist-Businessman Ioannis V. Vardinoyiannis, Businessman
Non Executive Members
Iakovos G. Georganas, Chief Financial Advisor Georgios P. Alexandridis, Economist, Member of the BoD of Motor Oil SA, Member of the Audit Committee (*) Vassilios S. Fourlis, Businessman, Chairman and Managing Director of Fourlis Holding SA Loukas A. Gerostathopoulos, Electrical Mechanical Engineer-Businessman Michalis D. Gigilinis, Businessman Stilianos D. Golemis, Economist, Chairman of Goldair Group Lambros E. Kotsiris, University Professor, Chairman of the Legal Committee Dimitrios Th. Simeonidis, Businessman,Chairman of the Federation of Industrialists of Northern Greece (*) Eftichios Th. Vassilakis, Economist, Vice Chairman of the BoD of Autohellas SA, Vassilakis Group Nikolaos J. Zografos, Economist, Chairman of the Audit Committee (*)
(*) Independent Member 55 PiraeusUK_51_76.qxd 13/04/05 14:45 “ Æ56
µ. MAIN COMMITTEES
For the purpose of more effective and secure operation of the Bank, the Board of Directors has entrusted the following main committees with special issues and specific competencies: ñ Executive Committee, ñ Audit Committee, ñ Assets and Liabilities Committee (ALCO), ñ Compensation Committee.
C. INTERNAL AUDIT SYSTEM
The Bank has established a strong Internal Audit System to secure its assets and ensure the interests of its shareholders, which consists of all auditing mechanisms and procedures, covering every Bank activity on a constant basis and contributes to the effective and secure operation thereof. The Bank has taken care for the implementing of the Internal Audit System in all the Group’s units in Greece and abroad, fulfilling all the organisational and entrepreneurial requirements that contribute to its efficient operation. The responsibility of observing the Internal Audit System lies with the following: ñ Audit Committee, and ñ Internal Audit Division.
The Board members assess the adequacy and effectiveness of the system annually and design the strategy for its improvement, based on a relevant report submitted by the Bank’s Management and the comments on it made by the Audit Committee. This report along with the relevant minutes of the BoD is communicated to the Bank of Greece. In addition, on a quarterly basis, the Audit Committee updates the BoD on the audits conducted by the internal audit division, while the head of the unit is obliged to be present at the General Assemblies of the Bank’s Shareholders.
Internal Audit Division
The Internal Audit Division, which reports to the Chairman of the Board of Directors, is an independent organizational unit, is in constant communication with the Audit Committee and is responsible for the implementation of a modern and effective Internal Audit System.
The competencies of the Internal Audit Division include the following: ñ to regularly audit the efficiency and effectiveness of the Internal Audit System and inform the senior management bodies of the Bank in constant and timely manner about the status and progress of the auditing procedures, ñ to perform regular or special audits of all the operations and transactions of the Bank, to establish strict observance of all kinds of regulations, operation procedures and pre- emptive audit mechanisms that have been instituted for each transactions category, as well as compliance with the institutional framework governing the Bank’s operation, ñ to evaluate the effectiveness of the Bank’s software and IT systems, monitor systematically the appropriate application of the chart of accounts and data collection, processing, management and safe keeping rules and verify the validity of accounted
56 PiraeusUK_51_76.qxd 13/04/05 14:45 “ Æ57
data and produced statements, ñ to monitor and supervise the Group’s subsidiary companies, ñ to report to the Audit Committee on topics such as annual audit programmes and audit feed back, evaluation of audit findings, corrective action taken, coverage of internal audit’s needs, transferring to BoD and supervisory authorities as regards to chartered auditors reports, and ñ to co-operate with the independent auditors (chartered auditors, inspectors of the Bank of Greece) and approve the provision of information during audits.
It must be underscored that the Bank has established and operates since early 2005 an electronic system for the automatic detection of "suspicious transactions", which apart from the types of transactions that are minimum defined by the Bank of Greece as "transactions that need to be examined thoroughly", also detects and reports another 37 cases as possibly "suspicious", so as for the Bank to comply with regulations in force for the prevention of revenues from criminal activities legislation.
The Internal Audit Division is supervised by the General Inspector who is appointed by the Board of Directors, reports to the Chairman of the BoD and concerning the application of Law 3016/2002 regarding corporate governance to the Audit Committee and is an adequately qualified and experienced individual.
In early 2005 the Internal Audit Division was certified by EFQM as "Committed to Excellence"; it is stressed that it is the first time an internal audit unit is certified by EFQM in this category in Europe.
D. TRANSPARENCY AND COMMUNICATION
Investor Relations
The information of the investors is the responsibility of the Investor Relations Unit, which provides systematic and symmetric information on the progress of Piraeus Bank and the Group to individual and institutional investors.
In more detail, investors are informed in the following manners: ñ responses to investor (mostly institutional) queries on the progress of the Bank on a daily basis, ñ organisation of corporate road-shows and one-on-one meetings; during 2004, 50 one- on-one meetings with institutional investors took place at the Bank’s premises (out of which 10 were group meetings) and 80 meetings were held during 4 road-shows in Europe and the USA (out of which 6 were group meetings), ñ maintenance of the relevant web site section of the Bank including financial data, press releases, detailed quarterly results accounts, as well as anything else in which investors might be interested in.
It is noted that according to the web sites rating of FTSE/ASE 20 companies by Yellownetroad company using the London School of Economics methodology, the Bank’s web site was ranked 2nd among the 20 largest companies listed in ASE in terms of "corporate information".
57 PiraeusUK_51_76.qxd 13/04/05 14:45 “ Æ58
Shareholder Registry Shareholder Structure of Piraeus Bank as of 31.12.2004
5.9% The Shareholder Registry operates according to the Capital Market Commission’s Board 11.3% 2.7% 0.7% resolution no 5/204/14.11.2000 on the shareholders’ service, and is responsible for the
25.1% direct and equal information of all shareholders, as well as helping them to exercise their rights on the basis of the law and the Bank’s Articles of Association.
Corporate Announcements Service
50.1% 4.2% The responsibility of corporate announcements lies with the instituted Corporate Announcements Service. The Corporate Announcements Service was set up according to Individual Investors ING the Capital Market Commission’s Board resolution no. 5/204/14.11.2000, and is Foreign Institution al Greek Institution al responsible for the Bank’s compliance with the institutional framework of such resolution. Investors Investors Other Companies State Its competencies are as follows:
Treasury Shares ñ to notify the competent authorities of the ASE and Capital Market Commission of any major business developments, ñ to notify in advance and communicate major deals and other financial activities of the Board members, management executives and other insiders, after the accountable persons have announced them to the Bank’s Board, as provided in the Internal Operation Manual.
The Bank’s announcements are sent immediately to the Athens Stock Exchange, in order to be recorded in the Daily Official List of ATHEX and for the purpose of investors’ information.
∂. SHAREHOLDING COMPOSITION
The shareholders’ base of Piraeus Bank presents a major diversity, consisting of representatives of the business community, domestic and foreign institutional investors and numerous private investors. At the end of December 2004, the total number of shareholders reached 221,411; no individual shareholder (legal or physical person) held more than 5% of the Bank’s total shares.
58 PiraeusUK_51_76.qxd 13/04/05 14:45 “ Æ59
SOCIETY AND ENVIRONMENT
UN Global Compact
In the beginning of 2004, Piraeus Bank showing its high awareness of corporate social responsibility joined voluntarily the UN Global Compact, which includes ten principles in the areas of human rights, employment rights, environment protection and corruption. Piraeus Bank took the initiative to support and promote these principles in its scope of activities. The table below shows the ten Global Compact principles and the actions taken by Piraeus Bank in order to put them in practice.
Principle Reference to the Annual Report or Implementation Method Description
1 Businesses are asked to support Full compliance with the relevant Greek and respect the protection of international and international laws human rights within their sphere of influence; and HUMAN RIGHTS 2 Make sure their own corporations are not Full compliance with the relevant Greek complicit in human rights abuses and international laws
3 Businesses are asked to uphold the freedom of Annual Report Section "Human Resources" association and the effective recognition of the right to collective bargaining;
4 The elimination of all forms of forced and Full compliance with the relevant Greek compulsory labour; and international laws RIGHTS LABOUR 5 The effective abolition Full compliance with the relevant Greek of child labour; and and international laws
6 The elimination of discrimination in respect of Annual Report Section "Human Resources" employment and occupation.
7 Businesses are asked to support a precautionary Annual Report Section "Society and Environment" approach to environmental challenges;
8 Undertake initiatives to promote greater Annual Report Section "Society and Environment" environmental responsibility; and
PROTECTION 9 encourage the development and diffusion of Annual Report Section "Society and Environment" ENVIROMENTAL environmentally friendly technologies.
10 Businesses should work against all forms of ñ Relevant term in employment contracts corruption, including extortion and bribery ñ Relevant labour relations framework in the Bank
ñ Control mechanisms and procedures and anti-money AGAINST laundering information system (including corruption) CORRUPTION
59 PiraeusUK_51_76.qxd 13/04/05 14:45 “ Æ60
N. CHRYSTODOULOU BROS S.A. Fruit juice industry PiraeusUK_51_76.qxd 13/04/05 14:45 “ Æ61
Social & cultural activities
Piraeus Bank sponsors and supports major projects on the aid of disadvantaged social groups and protection of the natural environment every year. The Bank has also undertaken considerable cultural activities through the Piraeus Group Cultural Foundation. The Bank's contributions to charity projects in 2004 exceeded 1.0% of its annual income before taxes. Similarly, total grants and sponsorships for culture, environment and charitable actions reached 1.4% of its operating costs in 2004.
In particular, Piraeus Bank: ñ since 2000, in collaboration with the Greek Orthodox Church, has implemented a special programme to assist families with many children in Thrace, subsidising every year all disadvantaged families with three children, ñ since 2000, has been financing organised communities, associations and organisations for disadvantaged and orphan children. It has been the exclusive sponsor of major fund- raising events for disadvantaged children or children suffering from severe or incurable diseases. ñ in the same year, started financing organisations supporting elderly people.
Piraeus Bank's contribution to culture is equally remarkable through the Piraeus Group Cultural Foundation (PGCF).
One of the main activity fields of the Foundation is the network of Theme Museums throughout Greece, which operate or are gradually completed, and are dedicated to the cultural and economic history as well as industrial tradition of Greece. These are the Silk Production Museum in Soufli, Hydro-Drive Museum in Dimitsana, the Olive Museum of Sparta and the Hellenic Musical Instruments Museum of Thessaloniki. Moreover, the Marble Craft Museum on Tinos island, the Museum of Oil-Industry on Lesvos island, the Traditional Trades and Environment Museum in Stymphalia and the Museum of Pilion Traditional Trades in Vyzitsa are at the construction stage.
The Museums of the Foundation operate like live bodies in the Greek regions, as they are significant points of reference and halls for cultural and educational events in the local societies. They attract large numbers of visitors and numerous students, who visit them in the framework of educational programmes carried out by primary and secondary schools.
The PGCF's principle fields of activity also include: the Historical Records Service, which keeps records of all establishment, funding and development data and details for major industries in Greece, the Scientific Events and Research Service, and the Publishing Service, which caters for the selection, authoring and publishing of books on the history of traditional technology and industrial evolution. It is also concerned with the broader promotion of Greece's economic history and civilisation.
61 PiraeusUK_51_76.qxd 13/04/05 14:45 “ Æ62
It is worth noting that the Ordinary General Meeting of the Greek Section of TICCIH (The International Committee for the Conservation of the Industrial Heritage) was held at the Foundation’s multi-purpose hall; the event was combined with the presentation of the Nizhny Tagil Charter on Industrial Heritage.
Environment
With regard to environmental issues, in 2004 Piraeus Bank prepared a strategic planning of all the actions required to implement its environmental policy, which had been approved by Board of Directors as early as in 2003, and undertook specific initiatives in this direction.
In more detail, a study was elaborated on the design, development and establishment of an environmental management system at organization level in Piraeus Bank, in compliance with the European EMAS (Eco-Management and Audit Scheme) Regulation,
62 PiraeusUK_51_76.qxd 13/04/05 14:45 “ Æ63
and completed in 2004. This study defines all the necessary actions stipulated in EMAS in order to promote on-going improvement of the Organisation’s environmental performance, as well as public and stakeholders’ information.
In the context of the Bank’s pilot initiatives on energy saving and participation in the European Grenn Light programme, a thorough lighting study was prepared detailing several intervention scenarios for the Bank’s head office building, subsequently lighting fixtures were reallocated and local lighting switches were applied. It is worth noting that this pilot application resulted in over 22% electric power savings, requiring minimum investment which was amortized in less than four months.
Lighting interventions with the use of modern highly efficient systems are gradually applied to all central buildings and branches of the Bank, following the elaboration of a power consumption study which was completed in 2004.
On the same track of environmental impact on natural resources, a paper recycling project was put in pilot application in 2004, placing special recycling bins in the Bank’s central offices. It is estimated that approximately 33% of total paper (except newspapers) was recycled at the central offices, while the target that had been set in the beginning of 2004 regarding newspaper recycling was exceeded: approximately 55% of newspapers was delivered to recycling in 2004 versus the 35% target. The Paper Reduce-Reuse-Recycle study in all of the Bank branches is currently in progress and is expected to be completed in 2005. It is worth noting that internal staff communication is almost exclusively conducted via Intranet, thus reducing significantly use of paper.
Finally, on the issue of staff mileage for business trips there was a decrease compared to the year before. In 2004 employees covered approx. 700,000 km within Greece and approx. 940,000 km abroad, namely approx. 410 km per employee on an annual basis.
Apart from these "internal" actions, Piraeus Bank has been granting considerable amounts to various environmental organisations every year, in the context of its environmental policy on supporting environmental protection efforts.
As an example it can be noted that, in 2004, the Bank sponsored the salvage, care and release of a subject of the endangered Mediterranean seal species Monachus monachus by the environmental organization MOm, at the National Reserve of Alonissos. Moreover, the Bank continued its exclusive sponsorship of a monthly ecological review.
Finally, Piraeus Bank has filled the position of the Environmental Management Officer in 2004, aiming at promoting and monitoring the implementation of its environmental policy. This action underscores the Bank’s commitment to structure and apply its environmental policy consistently and coherently, and raise the awareness of all stakeholders about its socially responsible profile, achieving a competitive edge in an environment where "competitiveness is also valued in ecologic and social terms".
63 PiraeusUK_51_76.qxd 13/04/05 14:45 “ Æ64
CURRENT POSITION (2004) 2005 OBJECTIVES
ORGANISATION LEVEL
Internal environment
Completion of the study on the planning and installation ñ Implementation of specific recurrent and comparable of an environmental management system, in compliance measuring and monitoring systems for paper, power with the European EMAS Regulation consumption, water and travels
ñ Standard and recurrent human resources information and training procedure regarding environment management issue
External environment
Response to environmental organisations’ requests for ñ Set-up of a selection and support system for natural support environment protection actions
APPLICATION LEVEL
Internal environment
36 tons of paper (except newspapers) delivered to ñ 5% increase in the paper quantity (except newspapers) recycling delivered to recycling
55% of newspapers (approx. 20 tons) delivered to ñ 5% increase in the newspaper volume delivered to recycling recycling
No use of recycled paper ñ Pilot use of recycled paper in specific applications
According to estimates, the Bank employees travel ñ 5% decrease in business trips by air approximately 700,000 km in Greece and 940,000 km abroad (i.e. 410 km per employee per year)
External environment
Environmental organizations sponsorships ñ Support of Greek biodiversity protection programs via sponsorships and partnerships
ñ Information, awareness-raising, public and/or group training activities regarding environmental protection
64 PiraeusUK_51_76.qxd 13/04/05 14:45 “ Æ65
CUSTOMER RELATIONS
In the context of customer information and transparency of transactions, the Bank observes the rules of Code of Banking Ethics, which pertain to the relations between banks and customers and are in accordance with the applicable legislation and transaction ethics.
All transactions with customers are governed by the spirit of mutual trust, and when executing transactions, the Bank shows due diligence, makes available at its premises information leaflets on the basic banking services offered and provides, when required, the necessary details in clear, simple and complete manner. Moreover, in the event of unilateral change in the terms and conditions governing the relationship with the customers, and should the latter be entitled thereto, the Bank informs them in the most appropriate manner collectively or individually, depending on the case. Customers will be given reasonable notice prior to any change, so as to be able to terminate in time their relationship if they so wish.
The promotion of banking products/services aims at being true, clearly specifying the proposed product/service, without exaggerations nor giving inaccurate or misleading information, nor excessive promotion or attempt to conceal the features of the offered products/services or exploit the public’s ignorance, inexperience or fears.
In the same framework, Piraeus Bank has applied the "Voluntary Code of Conduct on Precontractual Information for Mortgage Loan Customers", as agreed by the European Consumer Associations and European Credit Sector Associations.
At the same time, the Bank, with a view to meeting the needs of disabled people, too, has improved the accesses to its new branches by installing special ramps and doors, where possible. It also included special signalling in a certain ATM type, so as to facilitate people with vision problems.
Piraeus Bank reviews systematically its customers’ satisfaction rate with regard to services provided, by means of specifically designed scientific surveys. The outcomes of the 2004 survey were very satisfactory showing a satisfaction rate in excess of 98% of the respondents. Additionally, the Bank occasionally uses "mystery customers", in order to cross check the standard of provided services. Customer Complaints Distribution to the Customer Service of Piraeus Bank
Banking Ombudsman and Customer Service 2% 12%
In response to the Banking Ombudsman institution, the Bank has set up a Customer 34% Service. The tasks of the Customer Service are to review and settle any grievances or 13% complaints of Bank customers, and provide information and clarifications with respect to offered banking services. If the customer is not satisfied with the response of the Customer Service, he/she may contact the Banking Ombudsman in writing.
The ratio of Piraeus Bank cases to total bank cases handled by the Banking Ombudsman 39% was lower in 2004, specifically written complaints dropped to 4.4% from 5.3% in 2003 and Loans Cards phone calls dropped to 4.3% from 4.5% in 2003. Such rates are deemed low compared to Deposits - Cashier General Transactions the total market share of Piraeus Bank (approximately 11%), however further efforts will Investment products be made to in order to further reduce them in the immediate future.
65 PiraeusUK_51_76.qxd 13/04/05 14:46 “ Æ66
J&P-AVAX S.A. Contracting Company Project: Suburban railroad PiraeusUK_51_76.qxd 13/04/05 14:46 “ Æ67
SHARE PRICE DEVELOPMENT AND PERFORMANCE
Stock Exchange Developments and Share Price
In 2004, the Athens Stock Exchange General Index (GI) rose considerably for a second consecutive year. Such rise was accompanied with a slighter increase in the trading volume and share tradeability rates. Specifically, the ATHEX GI rose by 23.1% in 2004, and the total trading volume reached €35,736 mn against €34,936 mn in 2003.
The increase in ATHEX share prices, in 2004, mostly in the fourth quarter of the year, has set the total market capitalisation to €92,138 mn against €84,547 mn in 2003. So, the total capitalisation to Gross Domestic Product (GDP) ratio was 56%, similar to 2003.
The General Index of the Athens Stock Exchange ranged at much higher levels compared to the large international stock markets, which recorded single digit growth.
Foreign Stock Exchange Share Price Indices (year end)
INDICES 2004 2003 Change
CAC-40 3,821 3,529 8.3% DAX 4,256 3,965 7.3% FTSE-100 4,814 4,470 7.7% Dow Jones 10,783 10,524 2.5% Nasdaq Composite 2,175 2,010 8.2% FTSE Eurotop 300 Banks 947 858 10.4%
The Piraeus Bank share price followed a particularly positive trend in 2004 as well, it recorded a 33.5% increase, much higher than that of the ATHEX GI (23.1%) and the European FTSE Eurotop 300 Banks which grew by 10.4%.
ATHEX Share Price Indices (year end)
2004 2003 Change
ATHEX General Index 2,786 2,264 23.1% FTSE/ASE-20 1,547 1,170 32.2% Bank Index 6,129 4,247 44.3% Piraeus Bank Share Price (€) 12.86 9.63* 33.5%
* Adjusted price due to share capital increase
67 PiraeusUK_51_76.qxd 13/04/05 14:46 “ Æ68
Monthly Development of Piraeus Bank Share Price, Trading Volume and Value at ATHEX in 2004
Month-end Monthly Monthly Month price trading volume trading value (in €) (in items) (in €)
January 10.27 10,783,513 112,119,155 February 9.67 6,077,717 59,863,364 March 9.29 7,807,223 74,647,556 April 9.79 6,959,097 68,899,988 May 9.49 6,992,686 66,546,953 June 9.55 7,101,818 66,673,520 July 9.02 3,883,264 36,001,967 August 9.12 5,573,724 49,503,896 September 9.29 4,288,597 40,029,703 October 10.41 9,872,284 98,167,734 November 11.76 19,265,157 220,765,447 December 12.86 12,489,722 150,092,963
Apart from the ATHEX General Index, the Piraeus Bank share is included in a series of other indices, such as FTSE/ASE-20, Standard MSCI Greece (6.2% index weight), MSCI EAFE, DJ Euro Stoxx, DJ Euro Stoxx Banks, and FTSE4Good Index.
Regarding total capitalisation, Piraeus Bank’s share held one of the highest places among the companies listed in ATHEX on 31.12.2004, ranked at the 9th place, and 4th place among private companies. Specifically, total capitalisation rose to €2,575 mn on 31.12.2004 compared to EUR 1,913 mn at the end of the previous year.
Piraeus Bank’s Share Price Development vs. Bank Index and ATHEX General Index in 2004 Liquidity (end-month data)
150 In 2004, the share liquidity improved significantly compared to the previous year.
140 Compared to the other listed shares it is obvious that Piraeus Bank share is one of the most liquid traded at ATHEX, with 50.7% liquidity (4.3% monthly average), against 31.9% 130 for the total listed bank shares and 42.9% for total market. The average daily trading 120 volume increased to approximately 396 thousand items from 267 thousand items in 2003 110 and 143 thousand items in 2002. 100
90 Earnings per Share (EPS) 12/03 3/04 6/04 9/04 12/04
ATHEX General Index According to the 2004 consolidated Profit and Loss Account, the Piraeus Bank
Bank Index Shareholders’ earnings per share after tax, based on the number of shares at the end of
Piraeus Bank each year, amount to €0.71 against €0.51 in 2003, increasing by 38.4%. Such increase was the result of enhanced core business revenues and containment of the operating costs.
68 PiraeusUK_51_76.qxd 13/04/05 14:46 “ Æ69
Number of Shares
2004 2003 Change
Year-end 200,257,006 197,578,101 1.4% Weighted average number of shares outstanding during the financial year 197,609,867 167,403,805 18.0%
Earnings per share (EPS) after tax
2004 2003 Change
EPS after tax based on the number of shares outstanding at the end of the year in € 0.711 0.514 38.4%
EPS after tax based on the weighted average number of shares outstanding during the year in € 0.721 0.606 18.9%
Dividend
The total dividend proposed for distribution in 2004 rises to € 80.1 mn, i.e. 40 cents per share, against 30 cents last year (+33%). Based on the average closing price in 2004 (€ 9.93), the dividend yield was 4%, while based on the closing price as of 31 December 2004 dividend yield equals 3.1%.
69 PiraeusUK_51_76.qxd 13/04/05 14:46 “ Æ70
ADOPTION OF THE INTERNATIONAL FINANCIAL REPORTING STANDARDS
Piraeus Bank Group applies the International Financial Reporting Standards (IFRS), as required by the relevant legislation. The first financial statements according to the IFRS, for the first quarter of 2005, will be published in May 2005.
During the last 2 years, for the successful transition to the IFRS by the Bank and the Group consolidated companies, special work groups have been set up, which in cooperation with International Audit Firms’ experts and the Group’s Certified Auditors, have made the necessary adjustments to the Bank’s information technology systems.
The most significant adjustments which have been made for the transition to the IFRS are as follows: ñ new procedure and accounting software systems for the Bank and the Group companies, ñ development of impairment test techniques, ñ drawing up of actuarial reports for the estimation of the obligations arising from defined benefit schemes, ñ estimation of the property fair value by certified valuers, ñ development of new fixed assets register supporting the IFRS, ñ categorization of the securities portfolio into ‘‘held to maturity’’, ‘‘available for sale’’, ‘‘measured at fair value through Profit and Loss account’’ and ‘‘trading’’. ñ impairment test for the securities portfolio by International Audit Firms, ñ accounting of finance leases according to the IFRS, ñ preparation for the consolidation of the real estate subsidiaries as well as other non financial sector companies, ñ drawing up of a uniform financial report for the Group subsidiaries, in order to fully automate the preparation of the financial statements and their notes.
Under the scope of the first time application of the IFRS and for the prompt update of the investment community and other recipients of the financial statements, Piraeus Bank Group has included in its 2004 full year press release an estimate of the main consolidated balance sheet items as of 31.12.2004 according to the IFRS.
Due to the IFRS first time application and according to the existing estimations, it is expected that the Piraeus Bank Shareholders’ equity will be 6% lower in comparison to the published financial statements according to the Greek Accounting Principles. The reduction will result mainly from the provision for defined benefit obligation plans for the Group personnel.
Moreover, it is estimated that the total Shareholder’s equity of the Group will not change as minority interests are expected to increase compared to the published figures according to the Greek Accounting Principles, mainly due to the consolidation of the Real Estate companies and other non financial sector companies.
70 PiraeusUK_51_76.qxd 13/04/05 14:46 “ Æ71
THRACE PLASTICS S.A. Plastic packaging and textile industry PiraeusUK_51_76.qxd 13/04/05 14:46 “ Æ72
GROWTH GOALS AND PROSPECTS OF PIRAEUS BANK GROUP
The strategic goal of Piraeus Bank Group is to be one of the major financial institutions in South-eastern Europe.
In retail banking in Greece, the Bank aims at consolidating its place as one of the top choices among individual customers. The means to achieve such aim is the wide range of products, which is increasingly enriched with pioneering features, improved sales procedures, good use of the existing customer base and multiple distribution channels. As regards small-and medium-sized enterprises, it is the Bank's objective to reinforce its presence through organisational restructuring, centralisation of back-office operations, creation of specialised products and entry into new market segments.
Regarding medium and large-size enterprises, the Group aims at a moderate improvement of its figures, enhancing the offer of innovative products. In ship financing, the Group aims at boosting its rather good position, focusing on cross-selling.
Along with the growth of its figures and customer base, the Group places equal emphasis on the systematic monitoring and improvement of its loans portfolio quality, through its vigorous credit policy which ensures a smooth progress and profitability for the Group.
The fast expansion rate of branch network in Greece will be kept in 2005 opening approximately 15-20 new branches mainly in the Attica area, where the Bank lags behind the competition and the financial-economic activity. These new branches, along with the operational maturing of approximately 100 branches established in past 5 years, are expected to contribute decisively to the further growth of the Group's operations and profit. Additionally, the Bank’s e-platform, Winbank, will keep on investing in operating and security systems and enhancing its products and services range, in order to maintain innovation, van-guard and its leading position in the market. The ATM’s network will grow by 90 new, mainly off-site units.
In investment banking, it will be attempted to broaden the customer base, attracting both private and public sector customers, make better use of the Group synergies, establish new partnerships and substantially improve income. In private banking, the increase in staffing, organizational restructuring and wider product range are expected to reinforce the Group’s presence in private asset management. With regard to mutual funds, where the Group is lagging behind despite the broad spectrum of investment products, an organizational restructuring of sales methods is underway and the training level of the sales force is improved, in order to increase the Group’s market share.
In the area of participations & shareholdings, the Group is firmly reducing its holdings in non-financial organisations, focusing on core business activities and aiming at cost-cutting and improved invested capital efficiency.
72 PiraeusUK_51_76.qxd 13/04/05 14:46 “ Æ73
Regarding activities abroad, it is a strategic choice to grow the Group substantially and immediately in the Balkan region, enlarging the branch networks in Albania and Romania by 15-20 units, following the acquisition agreement signed with Eurobank in Bulgaria in the beginning of 2005. Moreover, the commercial banking operations enhancement policy will be implemented focusing on retail products, and IT infrastructures will be further improved in order to increase the market share in the region. At the same time, the Bank‘s entrance into the Serbian market is implemented through an acquisition agreement which was signed with Atlas Banka in the beginning of 2005. Finally, in New York, where the Group is represented by Marathon Bank, the Bank will continue to grow its operations and add two new branches to its network.
The principal targets of Piraeus Bank Group are a) to contain its operating costs, by reducing its "cost to income" ratio below 53%, and b) to enhance return on equity (ROE) to above 18% in the forthcoming three years. Finally, the common component of all the above planned actions is the creation of added value for shareholders, pursuing the positive results trend achieved in 2004.
73 PiraeusUK_51_76.qxd 13/04/05 14:46 “ Æ74
11th CONSOLIDATED BALANCE SHEET AS AT DECEMBER 31, 2004 P.D. 360/1985 & L.2533/1997 ATHENS - Companies Register No. 6065/06/B/86/04
(In Euro)
ASSETS 31-12-2004 31-12-2003
1. Cash in hand and balances with the Central Bank 1,113,953,657.49 785,912,384.53 2. Treasury bills and similar securities eligible for rediscounting with the Central Bank a. State issued bills 145,452,611.86 117,705,723.61 3. Loans and advances to Credit Institutions a. Sight deposits 43,028,592.14 60,338,990.38 b. Other loans and advances to Credit Institutions 164,826,191.48 116,302,199.96 c. Reverse Repos 70,386,384.75 278,241,168.37 43,305,594.00 219,946,784.34 4. Loans and advances to customers a. Loans to customers 12,537,912,856.81 10,530,193,689.97 b. Other receivables from customers 146,857,111.48 150,930,855.71 Less: Provisions 423,141,648.92 12,261,628,319.37 402,780,923.38 10,278,343,622.30
5. Bonds and other fixed-income securities a. State bonds 904,874,666.65 1,533,891,254.04 b. Other issuers 315,055,847.97 1,219,930,514.62 323,113,492.31 1,857,004,746.35 6. Shares and other variable-income securities less third parties rights 562,135,457.12 533,138,120.79
7. Investments in non affiliated companies 54,752,838.57 73,491,349.97 8. Investments in affiliated companies 332,917,628.99 390,940,604.66 9. Intangible fixed assets a. Formation and establishment expenses 11,316,507.62 9,775,964.95 c. Other intangible fixed assets 175,848,453.72 187,164,961.34 171,296,822.09 181,072,787.04 Less: Accumulated amortization 154,509,431.68 32,655,529.66 137,827,322.08 43,245,464.96
10. Tangible fixed assets a. Land building sites 29,002,909.88 10,397,931.46 b. Buildings and installations 172,055,336.79 136,984,261.20 Less: Accumulated depreciation 64,688,748.05 107,366,588.74 57,162,235.33 79,822,025.87 c. Furniture, electronic and other equipment 148,635,155.72 123,460,705.44 Less: Accumulated depreciation 110,884,300.45 37,750,855.27 93,886,756.60 29,573,948.84 d. Other tangible fixed assets 7,427,043.59 7,103,909.28 Less: Accumulated depreciation 5,714,186.04 1,712,857.55 5,392,795.37 1,711,113.91 e. Assets under construction and prepayments 13,503,118.73 189,336,330.17 28,823,659.76 150,328,679.84
13. Other assets 314,393,735.41 204,911,189.39 14. Prepaid expenses and accrued income 85,537,738.87 79,569,235.02
TOTAL ASSETS 16,590,935,530.50 14,734,537,905.76
NOTES: 1. In addition to Piraeus Bank S.A., the following financial sector companies have been fully consolidated: 1) Tirana Bank I.B.C. [83.93%], 2) Marathon Banking Corporation [78.27%], after the merger with Interbank of New York, 3) Piraeus Bank Romania S.A. [99.99%], 4) Piraeus Leasing S.A. [84.27%], 5) Piraeus Leasing Romania SRL [100%], 6) Multifactoring S.A. [100%], 7) Multifin S.A. [87.50%], 8) Hellenic Investment Company S.A. [48.10%], 9) Sigma Securities S.A. [80%], after the merger with N. D. Devletoglou Securities S.A. 10) Piraeus Financial Economic Research S.A. [100%], 11) Piraeus Asset Management Europe S.A. [99.94%], 12) Piraeus Insurance Agency S.A. [98.99%], 13) Multicollection S.A. [51.00%], 14) Piraeus Group Finance P.L.C. [100%], 15) Piraeus Group Capital P.L.C. [100%], 16) Bulfina S.A. [100%], 17) ETBA Finance S.A. [100%], 18) Piraeus Enterprisers 1 LTD [100%], 19) Piraeus Enterprisers 2 LTD [100%], 20) Piraeus Enterprisers 3 LTD [100%], 21) Piraeus Enterprisers 4 LTD [100%], 22) Fairholme Enterprises LTD [100%], 23) Runius Overseas LTD [100%], 24) Mayboil LTD [100%], 25) Gibdale Overseas LTD [100%], 26) Chineridge LTD [100%] . The companies numbered (18) to (26) were consolidated for the first time on 30/09/2004 and the companies numbered (15) to (17) are consolidated for the first time on 31/12/2004. Of the companies consolidated on 31/12/2003, the following have been excluded from consolidation on 31/12/2004: (a) ∂∆µ∞ Insurance Agency S.A. due to its merger with Piraeus Insurance Agency S.A., (b) Piraeus Finance S.A., Piraeus Equities Holding S.A. and Piraeus Investment Consulting due to their merger with Piraeus Bank in December 2004, with transition Balance Sheet as at 30/06/2004. 2. Following the exercise of the stock options by the Bank’s personnel, the Bank’s share capital and share premium increased by EUR 11.1 million and EUR 11.3 million respectively, by the issue of 2,678,905 new ordinary shares of nominal value EUR 4.15 and exercise price of EUR 8.36. 3. The Bank and certain consolidated subsidiaries valued the securities portfolio following the requirements of Law 2992/2002. The resulting negative difference of EUR 0.3 million was added to the Reserves. Other shares and non consolidated investments portfolio, of total amount EUR 503.2 million was valued at cost. The corresponding net asset value, according to the relevant requirements of Law 2190/1920, amounts to EUR 425.5 million approximately. This difference will not exist following the adoption of the International Financial Reporting Standards. 4. Treasury Shares are presented as a reduction from Total Shareholders’ Equity following the interpretation of International Accounting Standards. 5. The Bank during 2004, following the requirements of article 15 of Law 3229/2004, revalued its property to fair value. The resulting positive difference of EUR 38.1 million was fully offset by the negative differences from valuation of shares, bonds and other securities, which are included in the “Ordinary reserve from portfolio valuation”. Also, negative difference of EUR 3.8 million was offset by corresponding recorded provisions. The consolidated subsidiaries Sigma Securities S.A. and Piraeus Leasing S. A., following the requirements of Laws 2065/1992 and 3229/2004 respectively, recorded the resulting positive differences of EUR 0.26 million and 0.47 million in the “Revaluation Reserve”. 6. According to article 39 of Law 3259/2004, which refers to the settlement of non performing loans, loans of EUR 41.1 million and provisions of EUR 3.9 million, were written off. The net amount of EUR 37.2 million was directly offset to Tax Free Reserves, without charging the Profit and Loss account. 7. Fixed assets employed for leasing activities are presented as receivables from customers, according to International Financial Reporting Standards, for the consolidated companies PIRAEUS LEASING S.A. and PIRAEUS LEASING ROMANIA SRL. The relevant balances have been reclassified, with no effect on the Group Profit before tax. 8. The Bank and its most significant subsidiaries book a retirement benefit provision consistently, based on the 205/1988 Interpretation of the Legal Advisory Committee to the Government, and article 10 of Law 2065/1992. Had the Bank and these subsidiaries created a retirement benefit provision for all serving employees, the total amount required as at the 31st of December 2004 would amount to EUR 31.6 million, of which EUR 4.3 million relate to the year ended 31/12/2004. The total amount of retirement benefit provision as at 31/12/2004 amounts to EUR 4.7 million. 9. Tax Authorities have audited Piraeus Bank's and ETBA Bank’s tax positions for the year up to and including 1997 and 1998 respectively. 10. All disputes under litigation or arbitration as well as the pending court decisions have no significant effect on the financial position of the Group. 11. The fixed assets of the consolidated companies are free of any liens or encumbrances. 12. The number of staff employed by the Group’s companies as at 31/12/2004 was 5,358.
74 PiraeusUK_51_76.qxd 13/04/05 14:46 “ Æ75
11th CONSOLIDATED BALANCE SHEET AS AT DECEMBER 31, 2004
LIABILITIES 31-12-2004 31-12-2003
π. LIABILITIES 1. Deposits from Credit Institutions a. Sight deposits 43,945,961.50 60,728,088.70 b. With agreed maturity dates or periods of notice 1,644,314,581.14 2,100,688,015.38 c. Repurchase agreements (Repos) 26,086,600.00 1,714,347,142.64 121,786,667.06 2,283,202,771.14 2. Customer accounts a. Deposits 9,993,533,613.82 8,526,775,495.06 b. Obligations other than deposits ba. Sight 144,960,398.80 109,147,334.43 bb. Upon maturity and on notice 51,719,497.58 43,823,319.66 c. Repurchase agreements (Repos) 648,778,841.41 10,838,992,351.61 1,248,906,019.58 9,928,652,168.73 3. Long term liabilities a. Debentures 1,174,258,256.99 223,281,674.57 b. Loan stock (bank issued bonds) 475,448,063.89 1,649,706,320.88 473,069,608.69 696,351,283.26 4. Other liabilities 455,007,515.06 318,460,206.47 5. Deferred income and accrued expenses 106,128,166.82 97,536,826.96 6. Provisions for liabilities and charges a. Provisions for staff retirement benefits 4,738,172.50 12,136,992.69 b. Provisions for taxes 261,086.13 150,000.00 c. Other provisions 24,325,458.74 29,324,717.37 51,890,020.92 64,177,013.61 7. Subordinated dept 388,923,536.15 3,958,828.19 7∞. Hybrid Capital 193,572,718.00 0.00 Total liabilities 15,376,002,468.53 13,392,339,098.36
ππ. SHAREHOLDERS’ FUNDS 8. Share capital 831,066,574.90 819,949,119.17 9. Share premium account 366,809,587.15 355,531,397.10 10. Reserves - Ordinary reserve 56,675,662.52 51,034,796.56 - Ordinary reserve (from portfolio valuation) (78,586,305.86) (117,599,603.29) - Other reserve 27,717,841.11 5,807,197.77 82,080,691.14 15,515,884.41
11. Revaluation reserve 746,658.20 2,898,542.36 Treasury shares’ reserve 16,049,864.62 187,878.56 Less: Treasury shares’ reserve (cost) (27,738,241.46) (11,688,376.84) (19,766,949.93) (19,579,071.37)
12. Retained earnings brought forwand - Retained earnings brought forward and restatements 82,938,427.44 63,589,859.77
Goodwill-amounts written off (318,510,639.66) (221,984,720.40) Piraeus Bank Shareholders’ Total Equilty 957,169,428.96 1,015,921,011.04 Minority interests in equilty 257,763,633.01 326,277,796.36 Total equilty 1,214,933,061.97 1,342,198,807.40
TOTAL LIABILITIES AND SHAREHOLDERS’ FUNDS 16,590,935,530.50 14,734,537,905.76
OFF-BALANCE SHEET ITEMS (LIABILITIES) 31-12-2004 31-12-2003
1. Contingent liabilities 3,627,002,847.26 2,388,229,116.94 2. Commitments arising from temporary conveyance 684,717,841.71 1,371,551,014.94 3. Other memo accounts 29,059,268,330.77 24,284,217,734.81
OFF-BALANCE SHEET TOTAL 33,370,989,019.74 28,043,997,866.69
75 PiraeusUK_51_76.qxd 13/04/05 14:46 “ Æ76
11th CONSOLIDATED BALANCE SHEET AS AT DECEMBER 31, 2004
CONSOLIDATED INCOME STATEMENT 2004 2003
1. Interest Income - Interest on fixed income securities 106,749,018.91 122,659,988.75 - Other interest and equivalent income 674,623,027.00 781,372,045.91 634,531,431.50 757,191,420.25 Less: 2. Interest expense 334,751,291.42 365,997,080.68 446,620,754.49 391,194,339.57 Plus: 3. Income from securities a. From shares and other variable income securities 16,377,844.85 16,826,607.58 b. From non affiliated companies 228,652.66 309,907.40 c. From affiliated companies 3,527,960.24 20,134,457.75 2,656,918.64 19,793,433.62 4.-5 Net commision income 133,624,118.17 110,061,006.56 600,379,330.41 521,048,779.75 6. Net profit from financial transactions 82,155,497.07 57,647,251.09 7. Other operating income 13,771,141.87 16,508,618.14 696,305,969.35 595,204,648.98 Less: 8. General administrative expenses a. Staff expenses - Wages and salaries 144,805,233.32 129,609,556.62 - Social insurance contributions 32,161,829.06 29,348,834.85 - Other expenses - charges 14,167,306.55 191,134,368.93 14,572,830.60 173,531,222.07 b. Other administrative expenses 164,925,652.19 147,900,393.36 340,245,948.23 273,773,033.55 Less: 10. Other operating expenses 5,690,696.31 4,142,019.27 Operating results before depreciation and provisions 334,555,251.92 269,631,014.28 Less: 9. Depreciation and amortization of fixed assets 46,367,521.07 50,040,003.95 11. + 12. Provisions for bad and doubtful debts and contigencies 88,318,339.92 134,685,860.99 68,507,893.25 118,547,897.20 Total operating results 199,869,390.93 151,083,117.08 Plus: 15. Exceptional income 14,488,809.61 22,943,225.26 16. Exceptional expenses (13,607,227.65) (9,597,708.10) 17. Exceptional results 16,270,606.74 17,152,188.70 612,785.60 13,958,302.76 18. Profit (before tax) 217,021,579.63 165,041,419.84 Analysed into: Share of minority in profit before tax 39,859,222.24 27,254,185.34 Profit of Pireaus Bank shareholders before tax 177,162,357.39 137,787,234.50
Less: Corporate tax 37,876,386.62 33,605,965.51 Special provision for tax 0.00 7,713,253.35 Profit after tax 179,145,193.01 123,722,200.98 Less: Share of minority in profit after tax 36,686,377.60 22,240,950.05 Profit of Piraeus bank shareholders after tax 142,458,815.41 101,481,250.93
Athens, February 22, 2005
CHAIRMAN OF THE BOARD OF DIRECTORS VICE-CHAIRMAN OF THE BOARD OF DIRECTORS FINANCE DIRECTOR and MANAGING DIRECTOR and DEPUTY MANAGING DIRECTOR
MICHALIS G. SALLAS THEODORE ¡. PANTALAKIS CONSTANTINOS I. LIAPIS ID ∆ 164347 ID • 365123 ID º 364378
AUDITORS’ REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS
To the Shareholders of PIRAEUS BANK S.A. We have audited the above Consolidated Accounts and the Consolidated Annex to the Balance Sheet of the group companies of Piraeus Bank SA operating in the financial sector for the period ended 31 December 2004. We conducted our audit in accordance with the provisions of Article 108 as well as the relevant provisions for consolidations of Law 2190/1920 (Companies Act) and the auditing procedures, which we considered appropriate, based on the principles and Auditing Standards of the Institute of Certified Auditors Accountants. The financial statements for all of the consolidated companies audited by Certified Auditors, have been made available to us and we have been provided with all the information and explanations requested. The audit of the accounts of the subsidiary companies, that have been included in the consolidation and represent 17.16% and 15.77% of the total assets and turnover respectively, has been carried out by other Certified Auditors on whose audit reports we have relied. We have verified the agreement of the contents of the Consolidated Directors' Report with the Consolidated Accounts. The Consolidated Annex to the Balance Sheet contains the information required by Article 130 and other relevant provisions of Law 2190/1920. Based on our audit, we concluded that Ordinary reserves (arising from portfolio devaluation) include an amount of at least EUR 65.3 million that relates to securities sold during the year, for which the adjustment of the cost to market values has been directly debited to reserves mainly in previous years. In our opinion, the above Consolidated Accounts, which are in agreement with the Accounts of the consolidated companies, and the information provided by them, after taking our qualification above and the Notes 3, 5, 6, 8 and 9 into consideration, together with the Consolidated Annex to the Balance Sheet, present fairly the structure of the Group's assets and financial position of the Group companies incorporated in the financial sector as at 31 December 2004 and of the results for the period then ended, in accordance with current legislation and generally accepted accounting principles which do not differ from those applied by the Bank in the previous period, except for the case of Note 5.
CONSTANTINOS L. KARANASIOS Athens, February 22, 2005 CONSTANTINOS I. MICHALATOS ICA Reg No 13411 THE CERTIFIED AUDITORS ICA Reg No 17701 SOL SA Certified Auditors PriceWaterhouseCoopers S.A.
76 PiraeusUK_77_96.qxd 13/04/05 14:49 “ Æ77
DEMO S.A. Pharmaceuticals industry PiraeusUK_77_96.qxd 13/04/05 14:49 “ Æ78
ANALYSIS OF FIGURES AND RESULTS OF PIRAEUS BANK
In 2004 Piraeus Bank achieved high growth rates in all its main figures. Customer deposits and ETBA bonds amounted to €11,143.4 mn against €8,904.6 mn at year-end 2003, i.e. risen by 25.1%. Loans reached €11,946.1 mn versus €10,027.4 mn in 2003, increased by 19.1%.
During 2004 the policy of gradual strengthening the most profitable items of assets was followed consistently. Thus, net loans accounted for 73.2% (against 68.9% the previous year), bonds 6.8% (against 12.5%) and participation-shares 8.3% (against 9.0%).
As regards liabilities, customer deposits and ETBA bonds increased their participation to 70.6% (against 63.6% the previous year), while repos decreased by 4.3% (against 8.9% in 2003), as well as interbank obligations to 10.1% (against 15.5%), due to the issuance of ECP and EMTN programmes.
At the end of 2004 Piraeus Bank branch network was made up of 263 branches, 14 of which were abroad. The total number of employees rose to 4,191 people, of which 173 worked abroad.
Loans and Advances
The Bank finances all the main economic sectors, offering alternative forms of financing denominated in both euro and foreign currencies. The Bank’s loan portfolio is characterised by great diversity in the various economic sectors, as indicated on the table below.
At the end of 2004 total loans to households (consumer-mortgage) accounted for approximately 29.5% of the Bank's total loan portfolio, presenting a growth of 29.2%.
Distribution of Piraeus Bank Loans and Advances per Economy Sector Amounts in € millions
Dec. ‘04 Dec. ‘03 Change
Industry 1,802.5 1,687.3 6.8% Handicraft 99.0 96.6 2.5% Trade 1,687.4 1,475.0 14.4% Shipping 490.9 459.9 6.7% Tourism 557.8 536.4 4.0% Energy and Transport 176.1 159.7 10.3% Construction 748.2 639.0 17.1% Other Sectors 2,681.0 2,148.6 24.8%
Loans to private enterprises 8,242.9 7,202.5 14.4%
Mortgage 2,186.0 1,548.1 41.2% Consumer 1,332.8 1,175.2 13.4%
Loans to households 3,518.8 2,723.3 29.2%
Public companies and organizations 136.8 43.0 218.1% Other receivables 47.6 58.6 -18.8%
Total loans 11,946.1 10,027.4 19.1%
78 PiraeusUK_77_96.qxd 13/04/05 14:49 “ Æ79
Loans to enterprises (apart from public companies and organisations) accounted for 69.0% of the loan portfolio, having a growth rate of 14.4%.
Funding Resources
Total funding resources attracted by the Bank in the form of customer deposits and interbank liabilities, as well as ETBA bonds, at year-end 2004 amounted to €13,421.4 mn against €12,320.4 mn in 2003, thus increasing by 9.0%. It is worth noting that customer deposits increased by 26.5% (€10,668.0 mn in 2004 versus €8,431.5 mn in 2003), while on the contrary customer repos declined by 44.8% (€687.4 mn in 2004 against €1,246.0 mn in 2003). ETBA bonds issued rose by 0.5% (€475.4 mn in 2004 versus €473.1 mn in 2003). The decline in repos is in line with the Bank’s strategy for a decrease in the bond portfolio. Thus, total deposits, ETBA bonds and customer repos rose to €11,830.8 mn compared to €10,150.6 mn in 2003, increased by 16.6%.
Development of Deposits, ETBA Bonds and Customer Repos of Piraeus Bank Amounts in € millions
Dec. ‘04 Dec. ‘03 Change
Deposits 10,668.0 8,431.5 26.5% ETBA bonds 475.5 473.1 0.5%
Total deposits 11,143.4 8,904.6 25.1%
Repos 687.4 1,246.0 -44.8%
Total deposits and repos 11,830.8 10,150.6 16.6%
At the end of 2004, sight and savings deposits accounted for 48% of total deposits against 41.1% in 2003, as a result of the "maturing" of the Bank’s branch network and the broadening of its clientele base.
Distribution of Piraeus Bank Customer Deposits (%)
Dec. ‘04 Dec. ‘03
Sight 21.0% 18.5% Savings 27.0% 22.6% Time 41.6% 42.0% ETBA bonds 4.6% 4.6%
Total deposits 94.2% 87.7%
Repos 5.8% 12.3%
Total deposits and repos 100.0% 100.0%
Results
The Bank’s profit before tax reached €114.2 mn in 2004 versus €111.8 mn in 2003, increased by 2.1%.
79 PiraeusUK_77_96.qxd 13/04/05 14:49 “ Æ80
Piraeus Bank Results Amounts in € millions
2004 2003 Change
Total net revenues 535.9 492.4 8.8%
Total expenses 353.7 330.6 7.0% Provisions 82.2 63.1 30.3% Extraordinary income, expenses and results 14.2 13.1 8.4%
Profit before tax 114.2 111.8 2.1%
Total net revenues of Piraeus Bank amounted to €535.9 mn in 2004 against €492.4 mn in 2003, increased by 8.8%. This rise is due to the significant enhancement of net interest income and net commission income by 12.0% and 31.9%, respectively and which are recurring sources of income (more "qualitative" types of revenues). On the contrary, results from financial transactions declined by €23.1 mn. If excluded, total core business income reaches €519.2 mn against €452.6 mn the previous year, increased by 14.7%. What’s more, 89.7% of the Bank’s net revenues stems from interest and commission income versus 84.5% in 2003.
Piraeus Banks Net Revenues Composition Amounts in € millions
Net Revenues Change Composition %
2004 2003 % 2004 2003
Net interest income 382.8 341.8 12.0% 71.4% 69.4% Net commission income 98.1 74.4 31.9% 18.3% 15.1% Income from securities 23.0 18.5 24.3% 4.3% 3.8% Other operating income 15.3 17.9 -14.5% 2.9% 3.6%
Net revenues before financial transactions results (core business) 519.2 452.6 14.7% 96.9% 91.9%
Financial transactions results 16.7 39.8 -58.0% 3.1% 8.1%
Total net revenues 535.9 492.4 8.8% 100.0% 100.0%
Net interest income rose by 12.0% to €382.8 mn against 341.8 mn in 2003. Net commission income climbed to €98.1 mn against €74.4 mn the previous year, improved by 31.9%. This important improvement is due to the increased commissions in commercial banking operations, where net income rose to €84.6 mn against €61.0 mn in the previous year, i.e. increased by 38.7%. Commissions from investment banking operations and income declined by 17%, with net income reaching €5.4 mn in 2004 against €6.5 mn in 2003. Moreover, net income from asset management operations presented an increase of 16.5%, amounting to €8.0 mn against €6.9 mn in 2003.
80 PiraeusUK_77_96.qxd 13/04/05 14:49 “ Æ81
Financial transactions results came to €16.7 mn versus €39.8 mn the previous year, decreased by 58.0%, mainly due to decrease of bond and derivative income.
Total operating expenses rose to €353.7 mn against €330.6 mn in 2003, increased by 7.0%.
Piraeus Bank Operating Expenses Composition Amounts in € millions
2004 2003 Change
Staff expenses 162.6 151.8 7.1% General administrative expenses 145.7 131.2 11.1% Other operating expenses 5.6 4.1 37.9% Depreciation 39.8 43.5 -8.5%
Total operating expenses 353.7 330.6 7.0%
Staff expenses amounted to €162.6 mn compared to €151.8 mn in 2003, increased by 7.1%. The containment of the growth rate in staff expenses to 7.1%, as compared to the higher growth rate in the branch network number which was 14.3% (263 branches in 2004 versus 230 in 2003) reflects the overall endeavour made to keep operating expenses at lower levels.
The increase in general administrative expenses by 11.1% is mainly due to expenses related to the promotion of products and the expansion of the branch network. Other operating expenses reached €5.6 mn and depreciation €39.8 mn.
81 PiraeusUK_77_96.qxd 13/04/05 14:49 “ Æ82
BALANCE SHEET AS AT DECEMBER 31, 2004 P.D. 360/1985 & ¡.2533/1997 ATHENS - Companies Register No 6065/06/B/86/04
(In Euro)
ASSETS 31-12-2004 31-12-2003
1. Cash in hand and balances with the Central Bank 1,019,534,907.48 725,502,646.84 2.Treasury bills and similar securities eligible for rediscounting with the Central Bank a. State issued bills 245,007.02 17,886.40 3.Loans and advances to Credit Institutions a. Sight deposits 36,531,801.70 50,889,510.07 b.Other loans and advances to Credit Institutions 225,092,671.04 184,217,242.00 c. Reverse Repos 65,531,625.72 327,156,098.46 0.00 235,106,752.07 4. Loans and advances to customers a. Loans to customers 11,898,518,137.02 9,968,762,875.78 b. Other receivables from customers 47,564,943.86 58,677,167.68 Less: Provisions 400,936,427.54 11,545,146,653.34 384,482,840.78 9,642,957,202.68
5.Bonds and other fixed-income securities a. State bonds 848,837,369.94 1,481,458,286.78 b.Other issuers 231,128,700.67 1,079,966,070.61 273,924,948.14 1,755,383,234.92 6.Shares and other variable-income securities less third parties rights 201,478,075.84 216,499,570.43
7.Investments in non-affiliated companies 30,285,352.96 42,555,481.30 8.Investments in affiliated companies 1,071,805,859.31 996,376,511.95 9.Intangible fixed assets a. Formation and establishment expenses 9,263,780.03 7,841,207.09 c. Other intangible fixed assets 153,025,033.75 162,288,813.78 148,440,478.38 156,281,685.47 Less: Accumulated amortization 132,384,050.94 29,904,762.84 116,999,623.21 39,282,062.26
10. Tangible fixed assets a. Land, building sites 23,909,976.00 6,647,178.28 b.Buildings and installations 155,684,912.16 117,581,992.31 Less: Accumulated depreciation 60,012,722.48 95,672,189.68 52,261,245.17 65,320,747.14 c. Furniture, electronic and other equipment 133,157,871.17 113,384,515.92 Less: Accumulated depreciation 101,498,568.38 31,659,302.79 87,286,908.69 26,097,607.23 d.Other tangible fixed assets 6,300,905.75 6,331,614.22 Less: Accumulated depreciation 5,209,281.48 1,091,624.27 5,013,218.90 1,318,395.32 e. Assets under construction and prepayments 12,655,109.31 164,988,202.05 28,676,415.62 128,060,343.59
13. Other Assets 222,493,107.75 139,665,489.37 14. Prepaid expenses and accrued income 78,418,140.64 70,336,160.90
TOTAL ASSETS 15,771,422,238.30 13,991,743,342.71
NOTES: 1. Following the exercise of the stock options by the Bank’s personnel, the Bank’s share capital and share premium increased by EUR 11.1 million and EUR 11.3 million respectively, by the issue of 2,678,905 new ordinary shares of nominal value EUR 4.15 and exercise price of EUR 8.36. 2. Piraeus Finance S.A., Piraeus Equities Holding S.A. and Piraeus Investment Consulting were merged with Piraeus Bank in December 2004, with transition Balance Sheet as at 30/06/2004. The above mentioned mergers increased Reserves by EUR 846 thousand and also decreased Retained Earnings by EUR 374 thousand. 3. Investments in fully consolidated subsidiaries of amount EUR 709 million, were valued at cost. According to the requirements of Law 2190/1920, the relevant market value amounts to EUR 463 million as at 31/12/2004. The difference between the two amounts is being eliminated upon consolidation. Investments in associated companies of non financial sector, in non affiliated companies, as well as shares of non listed companies amounting to EUR 506 million, were valued at cost. According to the requirements of Law 2190/1920, the corresponding net asset value amounts to EUR 399 million as at 31/12/2004. The difference between the two amounts will not exist following the adoption of the International Financial Reporting Standards. Other securities amounting to EUR 1,169 million were valued according to the requirements of Law 2992/2002, which allowed the deviation from the regulations of article 43 of Law 2190/1920, and the resulting negative difference of EUR 5.9 million was recorded directly to Reserves as a reduction without charging the Profit and Loss account. 4. Treasury Shares are presented as a reduction from Total Shareholders’ Equity following the interpretation of International Accounting Standards. 5. The Bank during 2004, following the requirements of article 15 of Law 3229/2004, revalued its property to fair value. The resulting positive difference of EUR 38.1 million was fully offset by the negative differences from valuation of shares, bonds and other securities, which are included in the “Ordinary reserve from portfolio valuation”. Also, negative difference of EUR 3.8 million was offset by corresponding recorded provisions. 6. According to article 39 of Law 3259/2004, which refers to the settlement of non performing loans, loans of EUR 41.1 million and provisions of EUR 3.9 million, were written off. The net amount of EUR 37.2 million was directly offset to Tax Free Reserves, without charging the Profit and Loss account. 7. The Bank books a retirement benefit provision consistently, based on the 205/1988 Interpretation of the Legal Advisory Committee to the Government and article 10 of Law 2065/1992. Had the Bank created a retirement benefit provision for all serving employees, the total amount required as at the 31/12/2004 would amount to EUR 30.8 million, of which EUR 4 million relates to the year ended 31/12/2004. The total amount of retirement benefit provision as at 31/12/2004 amounts to EUR 4 million. 8. Tax Authorities have audited Piraeus Bank's and ETBA Bank’s tax positions for the year up to and including 1997 and 1998 respectively. 9. All disputes under litigation or arbitration as well as the pending court decisions have no significant effect on the financial position of the Bank. 10. The fixed assets are free of any liens or encumbrances. 11. The number of staff employed by the Bank as at 31/12/2004 was 4,191. 12. In accordance with the 4-digit statistical grouping of the financial sector’s activity, the total of the Bank’s revenue falls under the code 651.9 «Activities of other Intermediary Monetary Organizations».
82 PiraeusUK_77_96.qxd 13/04/05 14:49 “ Æ83
BALANCE SHEET AS AT DECEMBER 31, 2004
LIABILITIES 31-12-2004 31-12-2003
π. LIABILITIES
1. Deposits from Credit Institutions a. Sight deposits 40,745,904.22 60,449,872.00 b. With agreed maturity dates or periods of notice 1,523,851,670.83 1,987,565,738.25 c. Repurchase agreements (Repos) 26,086,600.00 1,590,684,175.05 121,786,667.06 2,169,802,277.31 2. Customer accounts a. Deposits 10,569,752,984.55 8,350,655,896.29 b. Obligations other than deposits ba. Sight 98,200,803.68 80,886,262.53 c. Repurchase agreements (Repos) 687,347,901.60 11,355,301,689.83 1,245,980,346.57 9,677,522,505.39 3. Long term liabilities b. Loan stock (bank issued bonds) 475,448,063.89 473,069,608.69 4. Other liabilities 352,652,366.61 264,548,775.09 5. Deferred income and accrued expenses 63,357,648.79 41,997,860.49 6. Provisions for liabilities and charges a. Provisions for staff retirement benefits 3,977,262.08 11,568,406.14 c. Other provisions 32,237,254.49 36,214,516.57 49,776,916.54 61,345,322.68 7. Subordinated debt 598,492,000.00 0.00 Total Liabilities 14,472,150,460.74 12,688,286,349.65
ππ. SHAREHOLDERS’ FUNDS 8. Share capital - Paid up (200,257,006 shares of nominal value 4.15 EUR) 831,066,574.90 819,949,119.15
9. Share premium account 366,809,587.15 355,531,397.10 10. Reserves - Ordinary reserve 51,653,119.09 46,822,032.09 - Ordinary reserve (from portfolio valuation) (51,048,378.51) (81,332,034.75) - Extraordinary reserves 6,677,384.48 7,282,125.06 80,325,493.98 45,815,491.32
11. Revaluation reserve 66,223.81 2,789,642.47 Treasury shares’ reverse 16,049,864.62 187,878.56 Less: Treasury shares (cost) (16,049,864.62) 0.00 (187,878.56) 0.00 12. Retained earnings brought forward 94,047,266.64 79,371,343.02 Total equilty 1,299,271,777.56 1,303,456,993.06
TOTAL LIABILITIES AND SHAREHOLDERS’ FUNDS 15,771,422,238.30 13,991,743,342.71
OFF-BALANCE SHEET ITEMS (LIABILITIES) 31-12-2004 31-12-2003
1. Contingent liabilities 3,590,944,827.35 2,366,224,664.68 2. Commitments arising from temporary conveyance 639,878,853.01 1,363,995,845.28
3. Other memo accounts 28,951,428,279.77 23,874,621,201.64
OFF-BALANCE SHEET TOTAL 33,182,251,960.13 27,604,841,711.60
83 PiraeusUK_77_96.qxd 13/04/05 14:49 “ Æ84
INCOME STATEMENT
INTEREST INCOME 2004 2003
1. Interest income - Interest on fixed income securities 89,381,491.39 109,664,324.24 - Other interest and equivalent income 608,878,964.13 698,260,455.52 579,460,123.48 689,124,447.72 Less: 2. Interest expense 315,443,218.10 347,364,059.07 382,817,237.42 341,760,388.65 Plus: 3. Income from securities a. From shares and other variable-income securities 8,076,989.63 9,397,428.92 b. From non-affiliated companies 105,621.31 226,566.02 c. From affiliated companies 14,780,825.66 22,963,436.60 8,852,966.88 18,476,961.82 4 - 5.Net commission income 98,081,358.45 74,424,292.83 503,862,032.47 434,661,643.30 Plus: 6. Net profit from financial transactions 16,742,917.99 39,834,422.27 7. Other operating income 15,274,850.56 17,882,201.14 535,879,801.02 492,378,266.71 Less: 8. General administrative expenses a. Staff expenses - Wages and salaries 122,425,534.18 112,590,259.98 - Social insurance contributions 28,093,851.82 26,042,146.34 - Other expenses-charges 12,059,230.07 162,578,616.17 13,176,305.02 151,808,711.34 b. Other administrative expenses 145,754,745.02 131,237,337.92 227,546,439.83 209,332,217.45 Less: 10. Other operating expenses 5,648,342.31 4,094,689.94 OPERATING RESULTS BEFORE DEPRECIATION AND PROVISIONS 221,898,097.52 205,237,527.51 Less: 9. Depreciation and amortization of fixed assets 39,759,186.49 43,497,674.16 11. & 12. Provisions for bad and doubtful debts and contingencies 82,177,136.97 121,936,323.46 63,099,885.04 106,597,559.20 TOTAL OPERATING RESULTS 99,961,774.06 98,639,968.31 Plus: 15. Exceptional income 13,832,849.15 22,838,940.45 16. Exceptional expenses (12,354,958.88) (7,583,160.87) 17. Exceptional results 12,719,682.38 14,197,572.65 (2,124,302.60) 13,131,476.98
18. PROFIT (before tax) 114,159,346.71 111,771,445.29
84 PiraeusUK_77_96.qxd 13/04/05 14:49 “ Æ85
APPROPRIATION TABLE
APPROPRIATION TABLE 2004 2003
Profit (before tax) 114,159,346.71 111,771,445.29 Plus: Retained Earnings 79,002,384.88 20,538,729.48 Special provision for tax 7,713,253.35 0.00 Own shares reserve available for appropriation 0.00 49,583,615.40 Extraordinary Reserves for appropriation 49,683,395.30 136,399,033.53 61,846,851.04 131,969,195.92 Less: Corporation Tax 21,233,430.81 19,346,981.91 Special provision for tax 0.00 7,713,253.35 Other taxes not incorporated into operating results 471,991.71 442,320.10 Prior years’ taxes 1,642,322.35 23,347,744.87 180,061.57 27,682,616.93
PROFIT FOR APPROPRIATION 227,210,635.37 216,058,024.28
Appropriation of profits was as follows:
1. Ordinary reserve 3,921,576.14 4,168,089.89 2. & 3. Dividends (0,40 EUR per share) 80,102,802.40 59,273,430.30 5. Special reserves 419,940.26 80,078.79 5a. Extraordinary reserves 0.00 49,583,615.40 5b. Extraordinary reserves from tax-free profits 12,543,756.65 9,789,529.22 6a. Tax-free reserve (Law 148/67) 3,608,603.22 6,915,286.83 6b. Treasury shares reserve 15,699,803.06 0.00 7. Fees and percentages of members of the Board of Directors 65,650.00 51,650.83 7a. Benefits to staff 16,801,237.00 6,825,000.00 Retained earnings carried forward 94,047,266.64 79,371,343.02
227,210,635.37 216,058,024.28
Athens, February 22, 2005
CHAIRMAN OF THE BOARD OF DIRECTORS VICE-CHAIRMAN OF THE BOARD OF DIRECTORS FINANCE DIRECTOR and MANAGING DIRECTOR and DEPUTY MANAGING DIRECTOR
MICHALIS G. SALLAS THEODORE N. PANTALAKIS CONSTANTINOS I. LIAPIS ID ∆ 164347 ID • 365123 ID º 364378
AUDITORS' REPORT To the Shareholders of PIRAEUS BANK S.A.
We have audited the above Accounts and the Annex to the Balance Sheet of Piraeus Bank SA for the period ended 31 December 2004. During our audit, the accounting books and records for the Bank's branches were also made available to us, mentioning that the foreign branches have been audited by local auditors. We conducted our audit in accordance with the provisions of Article 37 of Law 2190/1920 (The Companies Act) and the audit procedures, which we considered appropriate, based on the principles and auditing standards followed by the Institute of Certified Auditors Accountants. The books and records kept by the Bank have been made available to us and we have been provided with all the information and explanations requested. The Bank has properly applied the Banking Sector Chart of Accounts. The accounting policies applied are consistent with the previous period with the exception of Note 5. We have reviewed the contents of the Directors' Report to the General Meeting of shareholders for consistency with the Accounts. The Annex to the Balance Sheet contains the information required by Article 129 of Law 2190/1920. Based on our audit, we concluded that Ordinary reserves (arising from portfolio devaluation) include an amount of at least EUR 65.3 million that relates to securities sold during the year, for which the adjustment of the cost to market values has been directly debited to reserves mainly in previous years. In our opinion, the above Accounts, which are in agreement with the books and records of the Bank, after taking our qualification above and the notes No 3, 5, 6, 7 and 8 into consideration, together with the Annex to the Balance Sheet, present fairly the structure of the Bank's assets and its state of affairs as at 31 December 2004 and of the results for the period then ended, in accordance with current legislation and generally accepted accounting principles, which do not differ from those applied by the Bank in the previous period, except for the case of Note 5.
CONSTANTINOS L. KARANASIOS Athens, February 22, 2005 CONSTANTINOS I. MICHALATOS ICA Reg No 13411 THE CERTIFIED AUDITORS ICA Reg No 17701 SOL SA Certified Auditors PriceWaterhouseCoopers S.A.
85 PiraeusUK_77_96.qxd 13/04/05 14:49 “ Æ86
PIRAEUS BANK BRANCH NETWORK
ATTICA MITROPOLEOS PAGRATI 5, MITROPOLEOS ST. & 9, NIKIS ST. PAGRATI SQR. & 1, FRINIS ST. ATHENS 105 57 ATHENS 116 34 ATHENS TEL. +30 210 3230311 FAX +30 210 3240005 TEL. +30 210 7264980 FAX +30 210 7264981 CENTRAL AREA ADRIANOU- PLAKA PANORMOU HEADQUARTERS - AMALIAS 136, ADRIANOU ST. 70-72, PANORMOU ST., 11523 ATHENS 20, AMALIAS AVE. & 5, SOURI ST. 105 58, ATHENS TEL. +30 210 6919111 FAX +30 210 6914824 105 57 ATHENS TEL. +30 210 3215739 FAX +30 210 3215729 TEL. +30 210 3335000 FAX +30 210 3335030 GYZI PETRALONA 28, GYZI ST., 114 75 ATHENS AMALIAS 110, TRION IERARCHON ST. TEL. +30 210 6465868 FAX +30 210 6467970 2-4, AMALIAS AVE., 105 57 ATHENS 118 51 PETRALONA TEL. +30 210 3310522-6 FAX +30 210 3310527 TEL. +30 210 3471908 FAX +30 210 3470953 FOKIONOS NEGRI 29, FOKIONOS NEGRI ST., 113 61 ATHENS ARISTIDOU VOTANIKOS TEL. +30 210 8654515 FAX +30 210 8654352 4, ARISTIDOU ST., 105 59 ATHENS 129, SPYROY PATSI ST., 118 55 VOTANIKOS TEL. +30 210 3288714 FAX +30 210 3231482 ∆EL. +30 210 3472892 FAX +30 210 3472769 PATISSION 70, PATISSION ST. & KOTSIKA ST. KOTZIA SQUARE TAVROS 104 34 ATHENS 61, ATHINAS ST., 105 52 ATHENS 205, PIRAEUS AVE. & PANAGI TSALDARI TEL. +30 210 8252124 FAX +30 210 8252428 TEL. +30 210 5296000 FAX +30 210 5225852 118 53 TAVROS ∆EL. +30 210 3469022 FAX +30 210 3469988 ANO PATISSIA ALEXANDRAS AVENUE 380, PATISSION ST. 32, ALEXANDRAS AVE. & 60, SP. TRIKOUPI ST. AMPELOKIPI 111 41 ATHENS PEDIO AREOS, 114 73 ATHENS 41, KIFISSIAS AVE. & ARGOLIDOS ST. TEL. +30 210 2110800 FAX +30 210 2112122 TEL. +30 210 8838515/6 FAX +30 210 8838517 115 23 ATHENS TEL. +30 210 6993418 FAX +30 210 6993419 SYNGROU 87 MAIN BRANCH 87, SYNGROU AVE (ETBA BUILDING) 3, KORAI ST., 105 64 ATHENS MICHALAKOPOULOU 117 41 ATHENS TEL. +30 210 3311420-4 FAX +30 210 3231751 157, MICHALACOPOULOU ST. TEL. +30 210 9294081 FAX +30 210 9241513 115 27 AMPELOKIPI IRODOTOU - KOLONAKI TEL. +30 210 7717091 FAX +30 210 7710946 SYNGROU 110 14, IRODOTOU ST., 106 75 ATHENS 110, SYNGROU AVE. & ∑AN MOREAS ST. TEL. +30 210 7213709 FAX +30 210 7294089 ZOGRAFOU 117 41 ATHENS 87, ALEXIOU PAPAGOU AVE. & AGIOU TEL. +30 210 9222738 FAX +30 210 9214227 KORAI THERAPONTOS ST., 157 73 ZOGRAFOU 5, KORAI ST, 105 64 ATHENS TEL. +30 210 7780932 FAX +30 210 7781532 SYNGROU 198 TEL. +30 210 3250924 FAX +30 210 3233749 198, SYNGROU AVE., 176 71 ATHENS ILISSIA TEL. +30 210 9551066 FAX +30 210 9575481 OMONIA 30, GR. AFXENTIOU ST. & OULOF PALME ST. 6, TRITIS SEPTEMVRIOU ST. ILISSIA, 157 71 ZOGRAFOU SEPOLIA & 12, SATOVRIANDOU ST., 104 32 ATHENS TEL. +30 210 7756762 FAX +30 210 7799061 65, DYRRACHIOU ST. & 169 DRAMAS ST. TEL. +30 210 5280121 FAX +30 210 5280120 104 43 SEPOLIA LAIKO HOSPITAL ∆EL. +30 210 5125816 FAX +30 210 5125846 80 ATHINON AVE 17, AGIOU THOMA ST., 115 27 ATHENS 80, ATHINON AVE & 2-4 MIRIONOU ST. ∆EL. +30 210 7750893 FAX +30 210 7798270 EASTERN SUBURBS 104 41 AKADIMIA PLATONOS TEL. +30 210 5130878 IPPOKRATOUS AGIA PARASKEVI 80, IPPOKRATOUS ST. & 4 METHONIS ST. 429, MESOGION AVE. PANEPISTIMIOU 106 80 NEAPOLI, ATHENS 153 42 AG. PARASKEVI 20, PANIPISTIMIOU AVE, 106 73 ATHENS TEL. +30 210 3618460 FAX +30 210 3618443 TEL. +30 210 6002222 FAX +30 210 6011128 TEL. +30 210 3288888 FAX +30 210 3640659 AGIOU PANTELEIMONOS AG. IOANNOU-AGIA PARASKEVI KOLONAKI SQUARE 110, ACHARNON ST. & 72-74 DERIGNY ST. 40, AG. IOANNOU ST. 2, FILIKIS ETERIAS SQUARE, 106 73 ATHENS 104 34 ATHENS 153 42 AG. PARASKEVI TEL. +30 210 3619516 FAX +30 210 3639804 TEL. +30 210 8250952 FAX +30 210 8251033 TEL. +30 210 6008063 FAX +30 210 6009558
VALAORITOU ACHARNON VRILISSIA 16, VALAORITOU ST., 106 71 ATHENS 421, ACHARNON ST., 111 43 ATHENS 69, PENTELIS AVE, 125 35 VRILISSIA TEL. +30 210 3629334 FAX +30 210 3629862 TEL. +30 210 2520774 FAX +30 210 2520490 TEL. +30 210 8034710 FAX +30 210 8034474
86 PiraeusUK_77_96.qxd 13/04/05 14:49 “ Æ87
KOROPI ATHENS - LAMIA MOTORWAY ANO LIOSIA 110, VAS. KONSTANTINOU ST. 17th KM, ATHENS - LAMIA MOTORWAY 18, SOTIRIOU PETROULA ST., IROON SQ. 194 00 KOROPI & 4, ROUPEL ST., 145 64 KIFISSIA 133 41 ANO LIOSIA TEL. +30 210 6622288 FAX +30 210 6622208 TEL. +30 210 8001200 FAX +30 210 8000666 TEL. +30 210 2686263 FAX +30 210 2486269
CHALANDRI NEA IONIA TSALDARI - PERISTERI PENTELIS AVE. & 3, PAPAGOU ST. 285, IRAKLIOU AVE. & PROPONTIDAS ST. 73, P. TSALDARI ST. & IRODOTOU ST. 152 33 CHALANDRI 142 31 N. IONIA 121 34 PERISTERI TEL. +30 210 6853300-8 F∞à +30 210 6845675 TEL. +30 210 2758740 FAX +30 210 2759490 TEL. +30 210 5773922-7 FAX +30 210 5773921
PSICHICO GALATSI AGIOU ANTONIOU - PERISTERI 334, KIFISSIAS AVE. & 1, EL. VENIZELOU ST. 26, OMORFOKLISIAS AVE (ex VEIKOU) 33, ETHNARCHOU MAKARIOU ST. 154 51 N. PSICHICO & 1 AFAIAS ST., 111 47 GALATSI 12131 PERISTERI TEL. +30 210 6778928 FAX +30 210 6778638 TEL. +30 210 2920231 FAX +30 210 2920649 TEL. +30 210 5773225-30 FAX +30 210 5773224
FILOTHEI PARADISOS LOFOS AXIOMATIKON 296, KIFISSIAS AVE. & NAVARINOU ST. 26, KIFISSIAS AVE., & 2, PARADISOU ST. 129, KENNEDY ST. & 1 KRYONERIOU ST. 152 32 CHALANDRI 151 25 MAROUSSI 121 36 LOFOS AXIOMATIKON, PERISTERI TEL. +30 210 6892000 F∞à +30 210 6892008 TEL. +30 210 6857681/939 FAX +30 210 6858519 TEL. +30 210 5723302 FAX +30 210 5727164
LITO MAROUSI EGALEO "LITO", 7-13, MOUSSON ST. 221, KIFISSIAS AVE. 20, DIMARCHIOU ST., 122 42 EGALEO 115 25 PSICHICO 151 24 MAROUSI TEL. +30 210 5317568 FAX +30 210 5317423 TEL. +30 210 6925157 FAX +30 210 6923157 TEL. +30 210 6140941-3 FAX +30 210 6140947 IERA ODOS HOLARGOS KASTALIAS SQ., MAROUSI 285, IERA ODOS ST., 122 44 EGALEO 218, MESOGION AVE 46, THISEOS ST. & 2 DIMITRIOU RALLI ST. TEL. +30 210 5319832 155 61 HOLARGOS 151 24 MAROUSI TEL. +30 210 6545368 FAX +30 210 6545378 TEL. +30 210 8056732 FAX +30 210 8050145 ASPROPYRGOS 37, DIMOKRATIAS AVE & KOLOKOTRONI PEANIA NEA PHILADELPHIA 193 00 ASPROPYRGOS 146, LAVRIOU AVE. 190 02 PEANIA 77, DEKELIAS AVE & 2 ANNEON ST. TEL. +30 210 5575942 FAX +30 210 5579329 TEL. +30 210 6029420 FAX +30 210 6029808 143 41 N. PHILADELPHIA TEL. +30 210 2516835 FAX +30 210 2525745 ELEFSINA INTERNATIONAL AIRPORT "EL. VENIZELOS" 9, IROON POLITECHNIOU ST. AIRPORT "EL. VENIZELOS" METAMORPHOSI & 86, NIKOLAIDOU ST., 192 00, ELEFSINA 190 04 SPATA 44, GEORGIOU PAPANDREOU AVE. TEL. +30 210 5561902 FAX +30 210 5561909 TEL. +30 210 3542223 FAX +30 210 3542345 & NIKIS ST., 144 52 METAMORPHOSI TEL. +30 210 2852391 FAX +30 210 2852397 MEGARA PALLINI 28TH OKTOVRIOU ST. & CHRISTOU MORAITI 50, MARATHONOS AVE LIKOVRISI 191 00 MEGARA & ELEFTHERIOU VENIZELOU ST. 27, AG. VARVARAS ST. TEL. +30 2296 080907 FAX +30 2296 080243 153 51 PALLINI & GEORGIOU ARGIRI ST. TEL. +30 210 6666500 FAX +30 210 6666980 141 23 LIKOVRISI SOUTHERN SUBURBS TEL. +30 210 2819047 FAX +30 210 2845918 NEA MAKRI KESARIANI 137, MARATHONOS AVE. & KAFETZI ST. AGIOS STEFANOS 49-55, ETHNIKIS ANTISTASEOS AVE. 190 05 NEA MAKRI 8, CHELMOU ST., 145 65 AGIOS STEFANOS & 26 PANIONIOU ST. TEL. +30 22940 94056 FAX +30 22940 94032 TEL. +30 210 8144532-5 FAX +30 210 6218929 161 21 KESARIANI TEL. +30 210 7296333 FAX +30 210 7296331 ARTEMIDA MENIDI 3, ARTEMIDOS AVE. 23-25, PARNITHOS AVE, 136 75 MENIDI VIRONAS 190 16 ARTEMIDA TEL. +30 210 2446660 FAX +30 210 2446666 19, CHIMARAS & KOLOKOTRONI ST. ∆EL. +30 2294085477 FAX +30 2294085473 162 32 VIRONAS WESTERN SUBURBS TEL. +30 210 7620467 FAX +30 210 7620914 NORTHERN SUBURBS ILION ILIOUPOLIS KIFISSIA 65, PROTESILAOU ST. 2, KANARION SQ. & SKRA ST. 240, KIFISSIAS AVE., 145 62 KIFISSIA & 22, IDOMENOS ST., 131 22 ILION 163 45 ILIOUPOLI TEL. +30 210 8087838 FAX +30 210 8086488 TEL. +30 210 2634112 FAX +30 210 2634606 TEL. +30 210 9700621 FAX +30 210 9700886
87 PiraeusUK_77_96.qxd 13/04/05 14:49 “ Æ88
KATRAKI SQUARE-GLYFADA PALEO FALIRO ETOLOAKARNANIA 6, VASO KATRAKI SQ., 166 75 ATHENS 8-10, AMFITRITIS ST. & 7, PROTEOS ST. TEL. +30 210 8940330 FAX +30 210 8941258 175 61, P. FALIRO AGRINIO TEL. +30 210 9842338 FAX +30 210 9848150 14, IOANNI STAIKOU ST. & 68 KYPROU ST. FIVIS 321 00 AGRINIO 17, FIVIS ST., 166 74 GLYFADA VARI TEL. +30 26410 30036 FAX +30 26410 30039 TEL. +30 210 8947303 FAX +30 210 8947760 1µ, VARIS - KOROPIOU AVE., 166 72 VARI TEL. +30 210 9655051 FAX +30 210 9655604 NAFPAKTOS VOULA 6, INTZE ST. 63, VAS. PAVLOU ST. & POSEIDONOS AVE. PIRAEUS 303 00 NAFPAKTOS 166 73 VOULA TEL. +30 26340 20055/6 FAX +30 26340 20057 TEL. +30 210 8994463 FAX +30 210 8994470 GOUNARI 16, GOUNARI ST., 185 31 FTHIOTIDA DAFNI TEL. +30 210 4138504 FAX +30 210 4173440 3, MEG. ALEXANDROU ST. LAMIA & 2 KARAOLI & DIMITRIOU ST.,172 35 DAFNI 2ND MERARCHIAS 11, KAPODISTRIOU ST. & AG. NIKOLAOU ST. TEL. +30 210 9708791 FAX +30 210 9709026 7, 2ND MERARCHIAS ST. & FILONOS ST. 351 00 LAMIA 185 35 PIRAEUS TEL. +30 22310 39714 FAX +30 22310 39453 AGIOS DIMITRIOS TEL. +30 210 4135602 FAX +30 210 4117715 173, AGIOU DIMITRIOU AVE. VIOTIA 173 43 AGIOS DIMITRIOS SHIPPING BRANCH ∆EL. +30 210 9765010 FAX +30 210 9464036 47-49, AKTI MIAOULI LIVADIA 185 36 PIRAEUS 3, BOUFIDOU ST. METROPOLITAN HOSPITAL TEL. +30 210 4292630 FAX +30 210 4292659 321 00 LIVADIA 9, ETHNARCHOU MAKARIOU ST. TEL. +30 22610 81193 FAX +30 22610 81196 & 1, EL. VENIZELOU ST., 185 47 NEO FALIRO PERIVOLAKIOU-NIKEA TEL. +30 210 4809129 FAX +30 210 4809128 207, P. RALLI ST. & 14, DAVAKI SQR. THIVA 184 54 NIKEA 82, PINDAROU ST. ARGYROUPOLI TEL. +30 210 4250087 FAX +30 210 4250086 322 00 THIVA 48, ALEXIOUPOLEOS ST. TEL. +30 22620 22855 FAX +30 22620 28696 164 52 ARGYROUPOLI PAPASTRATOU TEL. +30 210 9917080 FAX +30 210 9918365 7, ANTIPLIARCHOU PAN. VLACHAKOU ST. INOPHYTA & POLYDEFKOUS ST. 3 ATHINON AVE. KALAMAKI 185 45 PIRAEUS 320 11 INOPHYTA 26, POSSIDONOS AVE. & RIGA FEREOU ST. TEL. +30 210 4130314 FAX +30 210 4130968 TEL. +30 22620 32344 FAX +30 22620 32352 174 55 ALIMOS TEL. +30 210 9845111 FAX +30 210 9886488 PASSALIMANI EUBOEA 136, GR. LAMBRAKI AV. ELLINIKO 185 35 PIRAEUS VENIZELOU 81, IASONIDOU AVE & 1A PLATONOS ST. TEL. +30 210 4132402-3 FAX +30 210 4132498 AGGELI GOVIOU ST. 157 77 ELLINIKO & 2, EL. VENIZELOU ST. TEL. +30 210 9605758 FAX +30 210 9620731 AG. TRIADA 341 00 HALKIDA 17, MAKRAS STOAS ST., 185 31 PIRAEUS TEL. +30 22210 86588 FAX +30 22210 77340 RENTIS VEGETABLE MARKET TEL. +30 210 4220520-5 FAX +30 210 4220529 2-4, DAVAKI ST. & PIRGOU ST. AVANTON 183 44 MOSHATO KORYDALLOS BALALEON ST. & AVANTON ST. TEL. +30 210 4836075/6 FAX +30 210 4836069 142, GRIGORIOU LAMBRAKI AVE 341 00 HALKIDA & DIMITRAKOPOULOU ST. TEL. +30 22210 76722 FAX +30 22210 76724 KALLITHEA 181 21 KORYDALLOS 167, EL. VENIZELOU ST., DAVAKI SQR. TEL. +30 210 5697554 FAX +30 210 5451216 ERETRIA 176 72 KALLITHEA 58, FILOSOFOU MENEDIMOU ST. TEL. +30 210 9574913 FAX +30 210 9574377 KERATSINI 340 08 ERETRIA 74, SALAMINOS AVE TEL. +30 22290 6413/4/5 FAX +30 22290 64616 OMIROU-NEA SMIRNI 174 57 KERATSINI 70, OMIROU ST., 171 21 N. SMIRNI TEL. +30 210 4310935 FAX +30 210 4315065 FOKIDA TEL. +30 210 9351900 FAX +30 210 9351548 KAMINIA AMFISSA NEA SMIRNI SQUARE 39, DODECANISOU ST. & 22 VALTETSIOU ST. GIDOGIANNOU ST. & 7, SALONON ST. 9A, 25 MARTIOU ST., 171 21 NEA SMIRNI 185 40 KAMINIA ISAIA SQUARE, 331 00 AMFISSA TEL. +30 210 9354003 FAX +30 210 9318614 TEL. +30 210 4226814 FAX +30 210 4226819 TEL. +30 22650 72711 FAX +30 22650 72717
88 PiraeusUK_77_96.qxd 13/04/05 14:49 “ Æ89
EVRITANIA IONOS DRAGOUMI TOUBA 5, IONOS DRAGOUMI ST., 546 25 THESSALONIKI 2, ISIDOROU ST. & 71, GR. LABRAKI ST. KARPENISI TEL. +302310 542213 FAX +302310 547323 543 51 THESSALONIKI 2, ZACHARIA PAPANTONIOU ST. TEL. +302310 907811 FAX +302310 907464 & DIM. KOTSIMBOU KALAMARIA 361 00 KARPENISI 1, METAMORFOSEOS ST. & PONTOU ST. INTERBALKAN MEDICAL CENTER TEL. +30 2237 025011 FAX +30 2237 025079 551 32 KALAMARIA 10, ASKLIPIOU ST. TEL. +302310 481812 FAX +302310 481515 12TH KM THESSALONIKI-AIRPORT THESSALONIKI 570 01 PILEA THESSALONIKI THESSALONIKI MAIN BRANCH TEL. +302310 475335 FAX +302310 475337 AG. SOFIA 9, TSIMISKI ST. & 8, I. DRAGOUMI ST. 81, EGNATIA ST. 546 24 THESSALONIKI ETHNIKIS AMINIS 546 35 THESSALONIKI TEL. +302310 271842 FAX +302310 239787 132, TSIMISKI ST. & ETHN. AMINAS ST. TEL. +302310 244590-2 FAX +302310 244589 546 21 THESSALONIKI MONASTIRIOU TEL. +302310 293469 FAX +302310 240685 AGGELAKI 225, MONASTIRIOU ST. 18, AGGELAKI ST. 546 28 MENEMENI, THESSALONIKI TSIMISKI 546 21 THESSALONIKI TEL. +302310 528916 FAX +302310 547323 52, TSIMISKI ST., 546 23 THESSALONIKI TEL. +302310 271298 FAX +302310 281813 TEL. +302310 233265 FAX +302310 233186 NEAPOLI AGIOU DIMITRIOU 79, AN. PAPANDREOU ST., 567 28 NEAPOLI KATOUNI 77, AG. DIMITRIOU ST. TEL. +302310 624900 FAX +302310 613689 2, TSIMISKI ST. & KATOUNI ST. 546 33 THESSALONIKI 546 25 THESSALONIKI TEL. +302310 225072 FAX +302310 223843 SIKEON TEL. +302310 293802 FAX +302310 544370 2, NIKOLAOU PARASKEVA ST. ANTIGONIDON 566 25 THESSALONIKI DIAGONIOS 17, ANTIGONIDON ST. TEL. +302310 628581 FAX +302310 327850 80, TSIMISKI ST., 546 22 THESSALONIKI 546 30 THESSALONIKI TEL. +302310 283157 FAX +302310 283021 TEL. +302310 542546-7 FAX +302310 545880 VOULGARI 170, KONSTANTINOU KARAMANLI AV. CHARILAOU VAS. OLGAS & 25 MARTIOU ST., 542 49 THESSALONIKI 117, AL. PAPANASTASTIOU ST. 199, VAS. OLGAS ST. TEL. +302310 325454 FAX +302310 326292 & 50, GENNADIOU ST., 542 50 THESSALONIKI 546 46 THESSALONIKI TEL. +302310 317777 FAX +302310 309175 TEL. +302310 425466 FAX +302310 411737 PANORAMA 33, KOMNINON ST., 552 36 PANORAMA EVOSMOS VAS. IRAKLIOU TEL. +302310 346914 FAX +302310 346916 37, 28 OCTOVRIOU ST. & MEG. ALEXANDROU ST., 1, VAS. IRAKLIOU ST. 562 24 EVOSMOS 546 25 THESSALONIKI PAPANASTASSIOU TEL. +302310 775775 FAX +302310 775777 TEL. +302310 547864 FAX +302310 547817 1, PAPANASTASSIOU ST. 546 39 THESSALONIKI IPPOKRATIO, THESSALONIKI ETHN. ANTISTASEOS TEL. +302310 848922 FAX +302310 853794 71 KONSTANTINOU KARAMANLI AVE. 51-53, ETHN. ANTISTASEOS ST. & PSARON, 546 42 THESSALONIKI 551 33 KALAMARIA THESSALONIKI RAILROAD TEL. +30 2310 940399 FAX +30 2310 940302 TEL. +302310 480602 FAX +302310 480609 25, GIANNITSON ST. & 52, ANAGENNISEOS ST. 546 27 THESSALONIKI PAPAGEORGIOU HOSPITAL EPTALOFOU SQUARE TEL. +302310 551946 FAX +302310 548892 PAPAGEORGIOU HOSPITAL 73, EL. VENIZELOU ST., 561 21 ABELOKIPI THESSALONIKI RING-ROAD TEL. +302310 733134 FAX +302310 749887 SALAMINA 546 29 THESSALONIKI 82, VAS. OLGAS AVE., 546 43 THESSALONIKI TEL. +302310 686203 FAX +302310 686204 EPTALOFOS TEL. +302310 832642 FAX +302310 853867 36, M. ALEXANDROU ST., 561 23 ABELOKIPI NEA POLITIA TEL. +302310 727351-6 FAX +302310 727357 STAVROUPOLI 18, GR. LABRAKI ST. & AG. KONSTANTINOU ST., 188, LAGKADA ST. & 1, GR. LABRAKI ST. 562 24 NEA POLITIA, EVOSMOS THERMI 564 29 STAVROUPOLI THESSALONIKI, 1, AN. PARAMANA SQ., 570 01 THERMI TEL. +302310 656717 FAX +302310 657995 TEL. +302310 642603/4 FAX +302310 642644 TEL. +302310 461714 FAX +302310 461846 SINDOU OREOKASTROU IONIA THESSALONIKI INDUSTRIAL ZONE DIMOKRATIAS AV. & POSSIDONOS ST. 73, VERIA ST., 570 08 IONIA 57400 SINDOS 570 13 THESSALONIKI TEL. +302310 782480 FAX +3031 782360 TEL. +302310 799196/7 FAX +302310 569008 TEL. +302310 698073 FAX +302310 698373
89 PiraeusUK_77_96.qxd 13/04/05 14:49 “ Æ90
PEREAS CENTRAL SQUARE, KAVALA SERRES 34, AMBELOKIPON ST. & KRITIS ST. 50 OMONIA SQR., 653 02 KAVALA 570 19 THESSALONIKI TEL. +302510 230801 FAX +302510 230930 ELEFTHERIAS TEL. +30 2392 075925 FAX +30 2392 075926 V. VASSILIOU ST. & 1, VASSILEOS CHRISSOUPOLI ALEXANDROU ST., 621 21 SERRES LANGADAS 115, EL. VENIZELOU ST. TEL. +30 23210 62871 FAX +30 23210 65416 4, KON. GOSIOU ST. 642 00 CHRISSOUPOLI & KON. GOSIOU SIDE-STREET TEL. +30 25910 24702 FAX +30 2591024770 TOWN HALL 572 00 LANGADAS, THESSALONIKI DION. SOLOMOU ST. & 2, TSALOPOULOU ST. TEL. +30 2394 026051 FAX +30 2394026247 ELEFTHEROUPOLI, KAVALA 621 22 SERRES 7 VENIZELOU ST. & IOUSTINIANOU TEL. +30 23210 24844 FAX +30 23210 21230 NEAS KRINIS NIKOTSARA SQ., 641 00 ELEFTHEROUPOLI 31, SMIRNIS ST. & 3, IDRAS SQUARE TEL. +30 25920 24680 FAX +30 25920 24685 IRAKLIA 551 32 NEA KRINI KALAMARIA, THESSALONIKI EL. VENIZELOU ST. TEL. +302310 442471 FAX +302310 443151 KASTORIA & PAPADATOU/ GREKOPOULOU ST. 624 00 IRAKLIA GREVENA KASTORIA TEL. +30 23250 24299 FAX +30 23250 25737 MEG. ALEXANDROU ST. & 1, GRAMMOU ST. GREVENA 521 00 KASTORIA FLORINA 11, MEG. ALEXANDROU ST. TEL. +30 24670 83985 FAX +30 24670 83989 511 00 GREVENA FLORINA TEL. +30 24620 84653 FAX +30 24620 84717 KILKIS 26, N. HASSOU ST., 531 00 FLORINA TEL. +30 23850 45762 FAX +30 23850 45765 DRAMA KILKIS 117, 21st IOUNIOU ST., 611 00 KILKIS HALKIDIKI DIOIKITIRIOU - DRAMA TEL. +30 23410 29027 FAX +30 23410 29012 41, IPIROU ST. & DIOIKITIRIOU ST. NEA MOUDANIA 661 00 DRAMA KOZANI TZAVOURA ST. & KYPROU ST. TEL. +3025210 48761/2 FAX +3025210 48764 (OMONIA SQUARE) KOZANI 632 00 ¡∂∞ MOUDANIA VERGINAS 10, PAVLOU MELA ST., 501 00 KOZANI TEL. +30 23730 25391 FAX +30 23730 25395 22, VERGINAS ST., 661 00 DRAMA TEL. +30 24610 40882 FAX +30 24610 31166 TEL. +30 25210 36338 FAX +30 25210 32150 EVROS PTOLEMAIDA IMATHIA 45, 25th MARTIOU ST. & ST. GONATA ST. ALEXANDROUPOLI 502 00 PTOLEMAIDA 227, DIMOKRATIAS AVE. VENIZELOU-VERIA TEL. +30 24630 54040 FAX +30 24630 54043 681 00 ALEXANDROUPOLI 5, VENIZELOU ST. & TSOUPELI ST. TEL. +30 25510 23436 FAX +30 25510 31601 591 00 VERIA PELLA TEL. +30 23310 20411 FAX +30 23310 64886 ORESTIADA GIANNITSA 207 KONSTANTINOUPOLEOS ST. ALEXANDRIA N. PLASTIRA ST. & 8, KOUGIOUMTZIDI ST. 682 00 ORESTIADA 87, D. VETSOPOULOU ST. & A. PAPAGOU ST. 581 00 GIANNITSA TEL. +30 25520 23222 FAX +30 25520 23201 593 00 ALEXANDRIA TEL. +30 23820 29115 FAX +30 23820 29544 TEL. +30 23330 28331 FAX +30 23330 28335 DIDIMOTICHOU EDESSA 36, VENIZELOU ST., 68 300 DIDIMOTICHO AG. SPYRIDONAS-VERIA 1, DIMOKRATIAS ST. & 13, EGNATIAS ST. TEL. +3025530 25311 FAX +3025530 26720 15, VENIZELOU ST., 591 00 VERIA 582 00 EDESSA TEL. +30 23310 70551 FAX +30 23310 70572 TEL. +30 23810 21889 FAX +30 23810 21893 XANTHI
NAOUSSA PIERIA XANTHI 2, VENIZELOU ST. & KARATASSOU SQR. ª. KARAOLI ST. & THERMOPILON ST. 592 00 NAOUSSA ELEFTHERIAS SQUARE-KATERINI 671 00 XANTHI TEL. +30 23320 20272 FAX +30 23320 20274 7, ELEFTHERIAS SQ. TEL. +30 25410 72751 FAX +30 25410 20277 601 00 KATERINI KAVALA TEL. +30 23510 30677 FAX +30 23510 24944 RODOPI
OMONIA, KAVALA MEG. ALEXANDROU-KATERINI KOMOTINI OMONIA ST. & PAVLOU MELA ST. 10, MEG. ALEXANDROU ST. 4, VASSILEOS GEORGIOU ST. 653 02 KAVALA 601 00 KATERINI 691 00 KOMOTINI TEL. +302510 832157 FAX +302510 836741 TEL. +30 23510 35777 FAX +30 23510 37977 TEL. +30 25310 27791 FAX +30 25310 31543
90 PiraeusUK_77_96.qxd 13/04/05 14:49 “ Æ91
SAPES CORFU GEORGIOU PAPANDREOU, PATRA 61, PAPADIMA ST., 693 00 SAPES 104 GEORGIOU PAPANDREOU ST. & IONIAS TEL. +30 25320 23007 FAX +30 25320 22669 ETHNIKIS PALEOKASTRITSAS 263 32 PATRA 4TH KLM, KERKIRA - PALAEOKASTRITSA TEL. +30 2610 323799 FAX +30 2610 328552 ARTA MOTORWAY, 491 00 CORFU TEL. +30 26610 49603 FAX +30 26610 49606 CORINTH REFINERIES ARTA 71ST KLM ATHENS-KORINTH OLD EL. VENIZELOU ST. & VAS. PYRROU ST. IOANNOU THEOTOKI NATIONAL ROAD, 200 03 AGIOI THEODOROI KILKIS SQUARE, 471 00 ARTA 21, IOANNI THEOTOKI ST. TEL. +30 27410 49296 FAX +30 27410 49079 TEL. +30 26810 77982 FAX +30 26810 77984 491 00 CORFU TEL. +30 26610 49607 FAX +30 26610 49606 ILIA THESPROTIA ARGOLIDA PYRGOS IGOUMENITSA 3, MEG. ALEXANDROU ST. 7-9, AG. APOSTOLON ST. ARGOS & THEMISTOKLEOUS ST., 271 00 PYRGOS 461 00 IGOUMENITSA 6, VAS. KONSTANTINOU ST. TEL. +30 26210 23194 FAX +30 26210 23195 TEL. +30 26650 21037 FAX +30 26650 23543 & PANAGI TSALDARI ST. 212 00 ARGOS AMALIADAS IOANNINA TEL. +30 27510 62529 FAX +30 27510 61167 3, EL.VENIZELOU ST. & PLATONOS ST. 272 00 AMALIADA DIMOKRATIAS SQUARE NAFPLIO TEL. +30 26220 29906/7/8 FAX +30 26220 29931 DIMOKRATIAS SQ. & 1, AVEROF ST. KIPROU ST. & 2 VARVAKI ST. 454 44 IOANNINA 211 00 NAFPLIO CORINTH TEL. +30 26510 73744 FAX +30 26510 73749 TEL. +30 27520 29839 FAX +30 27520 26882 CORINTH PYRSINELLA ARKADIA 6, KOLOKOTRONI ST., 201 00 CORINTH 6, PYRSINELLA ST., 453 32 IOANNINA TEL. +30 27410 85598 FAX +30 27410 29747 TEL. +30 26510 30320 FAX +30 26510 70110 TRIPOLI 8-10, VAS. GEORGIOU B SQR. LOUTRAKI DODONI 221 00 TRIPOLI 48, POSIDONOS ST., 203 00 LOUTRAKI 173, DODONIS ST., 452 21 IOANNINA TEL. +30 2710 238160 FAX +30 2710 238966 TEL. +30 27440 62857 FAX +30 27440 62858 TEL. +30 25610 43968 FAX +3025610 44876 ACHAIA LAKONIA PREVEZA AGIOS ANDREAS SPARTA PREVEZA 3, KOLOKOTRONI ST. 55-57, KON. PALEOLOGOU ST., 231 00 SPARTA 11, EL. VENIZELOU ST. & KYDONION ST. & AG. ANDREOU ST. TEL. +30 27310 81352 FAX +30 27310 81355 481 00 PREVEZA 262 21 PATRA TEL. +30 26820 22454 FAX +30 26820 24910 TEL. +30 2610 222630 FAX +30 2610 221711 SKALA LAKONIAS 28 OCTOVRIOU ST., 230 51 SKALA ZAKINTHOS MEZONOS TEL. +30 27350 23413 FAX +30 27350 23445 173, MEZONOS ST. & KANARI ST. ZAKINTHOS 262 22 PATRA MESSINIA 16, KON. LOMBARDOU ST. TEL. +30 2610 333236 FAX +30 2610 312862 & DIONISIOU STEFANOU, 291 00 ZAKINTHOS KALAMATA TEL. +30 26950 41700 FAX +30 26950 48222 ASKLIPIOU 1, POLYCHAROUS ST. 107, AG. ANDREOU ST. & ASKLIPIOU ST. & 43B, ARISTOMENOUS ST., 241 00 KALAMATA KEFALLONIA 262 21 PATRA TEL. +30 27210 94202 FAX +30 27210 94200 TEL. +30 2610 623161-2 FAX +30 2610 623163 ARGOSTOLI KARDITSA 110, ANTONI TRITSI AVE & ROKKOU EGIO VERGOTI, 281 00, ARGOSTOLI 2, MITROPOLEOS ST. & ERMOU ST. KARDITSA TEL. +30 26710 27601 FAX +30 26710 27610 251 00 EGIO 23, N. PLASTIRA ST., 431 00 KARDITSA TEL. +30 26910 60045 FAX +30 26910 60022 TEL. +30 24410 71680 FAX +30 24410 71350 LEFKADA ELLINOS STRATIOTOU LARISSA LEFKADA 85, ELL. STRATIOTOU ST. 187, IOANNOU MELA ST., AGIOS MINAS & 21, LEFKOSIAS ST. MEG. ALEXANDROU DISTRICT, 311 00 LEFKADA 264 41 PATRA 4, MEG. ALEXANDROU ST., 412 22 LARISSA TEL. +30 2645 026721 FAX +30 2645 026745 TEL. +30 2610 454666 FAX +30 2610 450929 TEL. +30 2410 258501 FAX +30 2410 251972
91 PiraeusUK_77_96.qxd 13/04/05 14:49 “ Æ92
IROON POLITECHNIOU CYCLADES HERAKLIO 113-115, IROON POLITECHNIOU ST. 412 23 LARISSA KEA HERAKLIO-ALIKARNASSOS TEL. +30 2410 552796 FAX +30 2410 551549 KORRISIA, 840 02 ∫∂∞ IKAROU AVE. & 140, IRODOTOU ST. TEL. +30 22880 22714 FAX +30 22880 22715 716 01 ¡. ALIKARNASSOS PANAGOULI TEL. +30 2810 243408 FAX +30 2810 243585 11-13, PANAGOULI ST. MILOS 412 23 LARISSA KARODROMOS, TRIOVASSALOS, 848 00 MILOS 25 AVGOUSTOU-HERAKLIO TEL. +30 2410 237603 FAX +30 2410 238308 TEL. +30 22870 24053 FAX +30 22870 24030 39, 25 AVGOUSTOU ST., 712 02 HERAKLIO TEL. +30 2810 282449 FAX +30 2810 342572 MAGNISSIA NAXOS PAPAVASSILIOU ST. & DIM. ODOU G. PAPANDREOU VOLOS PIGADAKIA, 843 00 NAXOS KNOSSOU AVE. & 46-50 G. PAPANDREOU ST. K. KARTALI ST. & 1, IASSONOS ST. TEL. +30 22850 26771 FAX +30 22850 26776 713 06 HERAKLIO 382 21 VOLOS TEL. +30 2810 228902 FAX +30 2810 241730 TEL. +30 24210 39201 FAX +30 24210 20518 SANTORINI FIRA, 847 00 SANTORINI EVANS N. IONIA TEL. +30 22860 25441 FAX +30 22860 25453 7, EVANS ST., 712 01 HERAKLIO 2, IRINIS AVE. & 1, GEORGIOU AVEROF ST. TEL. +30 2810 343343 FAX +30 2810 343350 380 02 ¡. IONIA, VOLOS MYKONOS TEL. +30 24210 90072/3 FAX +30 24210 90074 9, POLYKANDRIOTI ST., AGIA ANNA KNOSSOS 846 00 MYKONOS 255-259, KNOSSOU AVE. & NATHENA ST. TRIKALA TEL. +30 22890 28958 FAX +30 22890 28957 714 09 KNOSSOS TEL. +30 2810 326937/8/9 FAX +30 2810 326940 TRIKALA SYROS 32, ASKLIPIOU ST. 12, AKTI ETHNIKIS ANTISTASEOS HERAKLIO SCIENCE AND TECHNOLOGY PARK 421 00 TRIKALA ERMOUPOLI, 841 00 SYROS VASSILIKA VOUTON, 711 10 HERAKLIO TEL. +30 24310 74901 FAX +30 24310 74904 TEL. +30 22810 87771 FAX +30 22810 85040 TEL. +30 2810 391961 FAX +30 2810 391965
KALAMPAKA SIFNOS LASITHI 26 TRIKALON ST. & SIDIRODROMOU ST. APOLLONIA, GEFYRI POINT, 840 03 SIFNOS 422 00 KALAMPAKA TEL. +30 22840 33 983/5 FAX +30 22840 33 986 AG. NIKOLAOS TEL. +30 24320 78055 FAX +30 24320 78051 13, EL. VENIZELOU SQR. PAROS 721 00 AG. NIKOLAOS DODEKANESE M. MAVROGENOUS SQR., PARIKIA TEL. +30 28410 24182 FAX +30 28410 25609 844 00 PAROS KOS TEL. +30 22840 21432 FAX +30 22840 21055 IERAPETRA MARMAROTO 37, DIMOCRATIAS ST., 722 00 ALYKI, 853 00 KOS SAMOS IERAPETRA, TEL. +30 22420 26097 FAX +30 22420 26461 TEL. +30 28420 25138 FAX +30 28420 25138 SAMOS RODOS 89, THEMISTOKLI SOFOULI ST. & FOTIADOU ST. RETHIMNO KYPROU SQR. 831 00 SAMOS 8, AMERIKIS ST. & GR. LABRAKI ST. TEL. +30 22730 24591/2 FAX +30 22730 24804 RETHIMNO 851 00 RHODES 105, KOUNTOURIOTI SQR. TEL. +30 22410 77889 FAX +30 22410 77896 KARLOVASIOU 741 00 RETHIMNO 17, GORGIRA ST. TEL. +30 28310 52445 FAX +30 28310 52443 ETHNIKIS ANTISTASEOS 832 00 NEO KARLOVASI, SAMOS 28, ETHNIKIS ANTISTASEOS ST. TEL. +30 22730 33411 FAX +30 22730 33780 CHANIA 851 00 RHODES TEL. +30 22410 76891 FAX +30 22410 23797 LESVOS 1866 SQR. CHANIA 70, HATZIMICHALI GIANNARI ST. CHIOS MYTILINI 731 35 CHANIA 17, KOUNTOURIOTI ST., 811 00 MYTILINI TEL. +30 28210 50807 FAX +30 28210 50710 CHIOS TEL. +30 22510 43801 FAX +30 22510 43207 14, KANARI SQR. EMM. TZANAKAKI & FISTEL DE KOULANS ST. LIMNOS 54, EMM. TZANAKAKI ST. & BONIALI ST. 821 00 CHIOS 1, GAROFALLIDOU ST., MYRINA, 814 00 LIMNOS 731 34 CHANIA TEL. +30 22710 40335/6 FAX +30 22710 44769 TEL. +30 22540 25864/5 FAX +30 22540 25868 TEL. +30 28210 27708 FAX +30 28210 27709
92 PiraeusUK_77_96.qxd 13/04/05 14:49 “ Æ93
INDUSTRIAL AREAS
TRIPOLI IOANNINA KOMOTINI TRIPOLI INDUSTRIAL ESTATE IOANNINA INDUSTRIAL ESTATE (RODOTOPI) KOMOTINI INDUSTRIAL ESTATE 221 00 TRIPOLI 455 00 IOANNINA 691 00 KOMOTINI TEL. +30 2710 227798 FAX +30 2710 227731 TEL. +30 26510 57819 FAX +30 26510 57917 TEL. +30 25310 98824 FAX +30 25310 98823
PATRA LARISSA XANTHI PATRA INDUSTRIAL ESTATE LARISSA INDUSTRIAL ESTATE XANTHI INDUSTRIAL ESTATE 250 18 PATRA 410 02 LARISSA 671 00 XANTHI, TEL. +30 2610 647540 FAX +30 2610 647542 TEL. +30 2410 541457 FAX +30 2410 541487 TEL. +30 25410 67384 FAX +30 25410 67383
HERAKLIO VOLOS HERAKLIO INDUSTRIAL ESTATE VOLOS INDUSTRIAL ESTATE A’, VOLOS 716 01 HERAKLION, CRETE THESSALIA TECHNOLOGY PARK TEL. +30 2810 381811 FAX +30 2810 381815 385 00 VOLOS TEL. +30 24210 95134 FAX +30 24210 95691
DOMESTIC SUBSIDIARY COMPANIES
Piraeus Leasing S.A. Piraeus Insurance Agency S.A. Picar S.A. 87, Sygrou Ave., Ground Floor 26, Kifisias Ave & 2, Paradisou St. 2-4, Mesogeion St., Athens Tower 117 45, Athens 151 25, Athens Bld A, 7th Floor Tel. +30 210 90 09 800 Tel. +30 210 32 88 536 115 27 Athens Fax +30 210 90 09 999 Fax +30 210 33 35 360 Tel. +30 210 77 28 400 www.piraeusleasing.gr Fax +30 210 77 28 416 Multi Collection Services S.∞ www.picar.gr Piraeus Best Leasing S.A. 29-31, Sofokleous St., 105 52 Athens 87, Sygrou Ave., Ground Floor Tel. +30 210 37 24 000 Piraeus Real Estate Investment Property S.A. 117 45, Athens Fax +30 210 37 24 100 2-4, Mesogion St., Athens Tower Tel. +30 210 90 09 860 www.multicollection.gr Bld A, 7th Floor Fax +30 210 90 09 869 115 27 Athens Piraeus Direct Services S.A. Tel. +30 210 77 28 400 Piraeus Multifin S.A. 8, Gamveta St., 106 78 Athens Fax +30 210 77 28 430 13, Poseidonos Ave., 174 55, Alimos Tel. +30 210 32 88 900 Tel. +30 210 38 98 837 Fax +30 210 32 88 939 Botifin S.A. Fax +30 210 98 58 958 www.e-phonia.gr 2-4, Mesogion St. www.multifin.gr Athens Tower, Bld A, 7th Floor Exodus S.A. 115 27 Athens Piraeus Factoring S.A. 6-10, Farandaton St. Tel. +30 210 77 28 400 87, Sygrou Ave., 117 45, Athens 115 27 Ampelokipi Fax +30 210 77 28 416/30 Tel. +30 210 90 08 000 Tel. +30 210 74 50 300 Fax +30 210 92 13 146 Fax +30 210 74 50 399 Piraeus Real Estate S.A. www.piraeus-factoring.gr www.exodus.gr 2-4, Mesogion St. Athens Tower, Bld A, 7th Floor Piraeus Sigma-Devletoglou Securities S.A. ABC Professional Services S.A. 115 27 Athens 10, Stadiou St., 105 64 Athens 282, El. Venizelou St., 176 75, Kallithea Tel. +30 210 77 28 400 Tel. +30 210 33 54 100 Tel. +30 210 94 78 478 Fax +30 210 77 28 430 Fax +30 210 32 33 814 Fax +30 210 94 78 500 www.sigma.gr www.abc.gr Piraeus Bank Conference Center 2, Tsimiski St. ING Piraeus Mutual Funds Management S.A. Interattica S.A. 546 25 Thessaloniki 3, Korai St., 105 64, Athens 415, P. Tsaldari St., 176 75 Kallithea Tel. +30 2310 55 52 63, 64, 66 Tel. +30 210 33 35 966 Tel. +30 210 94 66 400 Fax +30 2310 55 52 68 Fax +30 210 33 35 990 Fax +30 210 94 07 680 www.interattica.gr Piraeus Group Cultural Foundation Hellenic Investment S.A. 6, Aggelou Geronta St. 17, Valaoritou St., 106 71, Athens ETBA Industrial Areas S.A. 105 58 Plaka Tel. +30 210 36 40 668 72-74 Salaminos St., 176 75 Kallithea Tel. +30 210 32 18 020 Fax +30 210 36 20 482 Tel. +30 210 95 40 223 Fax +30 210 32 18 145 www.hellenicinv.gr Fax +30 210 95 40 071 www.piop.gr
93 PiraeusUK_77_96.qxd 13/04/05 14:49 “ Æ94
NETWORK OF BRANCHES & SUBSIDIARIES ABROAD
UNITED KINGDOM 10. STARA ZAGORA BRANCH 7. BROOKLYN 1st BRANCH Piraeus Bank, London Branch 38, Rouski Blvd. 8724 4th Avenue 6000 Stara Zagora, Bulgaria Brooklyn, New York 11209 Tower 42, 25 Old Broad Street Tel: 00359 42 621642,620508 Tel: 001 718 836 4500 London EC2N 1HQ, United Kingdom Fax: 00359 42 602947 Fax: 001 718 836 5561 Tel: 0044 20 7920 6000 Fax: 0044 20 7920 6001 11. SANDANSKI BRANCH 8. BROOKLYN 2nd BRANCH 1, Macedonia Sq. 7826 5th Avenue, Brooklyn 2800 Sandanski, Bulgaria New York 11209 BULGARIA Tel: 00359 746 32503,32559,30423 Tel: 001 718 238 9868 Piraeus Bank, Branches Fax: 00359 746 31587 Fax: 001 718 238 9869
1. HEADQUARTERS & MAIN BRANCH 12. ROUSSE BRANCH 9. CHELSEA BRANCH 3, Vitosha Blvd.,1000 Sofia, Bulgaria 1 Zaichar str. 250 9th Avenue, New York, USA Tel: 00359 2 9815733 Rousse 7000 New York 10001 Fax: 00359 2 9818579 Tel: 00359 82 826671-3 Tel: 001 212-989-3700 Fax: 00359 82 826674 Fax: 001 212-463-8165 2. LOZENETZ BRANCH Sofia, Post Code 1421 13. SLIVEN BRANCH 10. MANHATTAN BRANCH "Lozenetz", 30 "Sveti Naum"/Str. Sliven, Post Code 8800 420 Park Avenue South New York, NY 10016 Sofia, Bulgaria 12 "H.Dimitar"/ Str.-Sliven, Bulgaria Tel: 001 212 252 8200 Tel: 00359 2 963 3517/3370/3376 Tel: 00359 44 624 221/277/732 Fax: 001 212 252 8219 Fax: 00359 2 963 3577 Fax: 00359 44 662 602
3. MLADOST BRANCH ALBANIA Sofia, Post Code 1784 U.S.A. Tirana Bank I.B.C 180 'Tsarigradsko Shose" Str. Marathon Bank of N.Y. 1784 Sofia - Bulgaria 1. HEADQUARTERS- VILLA BRANCH Tel: 00359 2 974 3149, 3504, 3865 1. HEADQUARTERS & MAIN BRANCH RR Deshmoret E 4 Shkurtit, Nr. Tirana Fax: 00359 2 974 4284 28-22 Steinway Street P.O. Box 2400/1 Tirana Astoria, New York 11103, USA Tel: 00355 4 269616-18 4. IVAN VAZOV BRANCH Tel: 001 718 721 0200 Fax: 00355 4 269707 104, "Akad. Geshov" Str. Fax: 001 718 721 0270 1612 Sofia, Ivan Vazov 2. KOMBIT - MAIN BRANCH Tel: 00359 2 810 0316-18 2. BAYSIDE BRANCH Bulevardi "Zogu I Pare" Nr. 55/1 Fax: 00359 2 810 0319 42-33 Bell Boulevard Tirana, Albania Bayside, New York 11361, USA Tel: 00355 42 33441/43/47 5. PLOVDIV BRANCH Tel: 001 718 224-9200 Fax: 00355 42 33417 9, Bethoven St., 4000 Plovdiv, Bulgaria Fax: 001 718 225-1597 Tel: 00359 326 27840-46 3. BRRYLI BRANCH Fax: 00359 326 32519 3. ASTORIA BRANCH RR. Gogo Nushi (Tek Brryli), Tirana 31-01 Broadway, Astoria Tel: 00355 4 362878,377246 6. PLEVEN BRANCH New York 11106 Fax: 00355 4 377288 13, Zamenhof St., 5800 Pleven, Bulgaria Tel: 001 718 777 5000 Tel: 00359 64 804152-156 Fax: 001 718 777 5010 4. RRUGA KAVAJES BRANCH Fax: 00359 64 802433 Kryqezimi 21, Dhjetorit, Tirana 4. DITMARS BRANCH Tel: 00355 4 269606, 269608-9 7. BLAGOEVGRAD BRANCH 33-02 Ditmars Boulevard Fax: 00355 4 269605 1, Todor Alexandrov St., 2700 Blagoevgrad Astoria, New York 11105, USA Blagoevgrad, Bulgaria Tel: 001 718-267-9800 5. RRUGA DURRES BRANCH Tel: 00359 73 82920-3 Fax: 001 718-267-0009 Rruga E Durresit (Zogu Zi), Tirana Fax: 00359 73 82924 Tel: 00355 4 225636, 227889 5. WHITESTONE BRANCH Fax: 00355 4 221362 8. VARNA BRANCH 150-07 14th Avenue 33, Slivnitsa Blvd ,9000 Varna, Bulgaria Whitestone, New York 11357 6. PAZARI I RI BRANCH Tel: 00359 52 616970-75 Tel: 001 718 747 8400 Rruga "Luigj Gurakuqi" Fax: 00359 52 616976 Fax: 001 718 747 5680 Tel: 00355 4 272041/44 Fax: 00355 4 272053 9. BURGAS BRANCH 6. BAY RIDGE BRANCH 10, St. Cyril & Methodius Sq. 7123 Third Avenue 7. MAIN FIERI BRANCH 8000 Burgas, Bulgaria Brooklyn, New York 11209, USA Rr. Jakov Xoxa, Fieri Tel: 00359 56 845735-6, 845764-5 Tel: 001 718 491-4800 Tel: 00355 342 4533/4589 Fax: 00359 56 845727 Fax: 001 718 491-3479 Fax: 00355 342 4536
94 PiraeusUK_77_96.qxd 13/04/05 14:49 “ Æ95
8. CUSTOM OFFICE BRANCH-FIERI 21. LEZHA 6. TIRGU MURES BRANCH Tel: 00355 342 4539 Lezha, Beslidhja, Albania 58A, Trandafirilor Square Contact Person: Tatjana Hysenaj Tel: 00355 215 4962-64 Tirgu Mures 540 053, Mures County Fax: 00355 215 4961 Tel: 0040 265 250143 9. DURRES BRANCH Fax: 0040 265 250188/219034 Rr. Deshmoreve, Lagja Nr. 12 22. KAMZA BRANCH Nr. 151, Durres Qender, Kamez, Albania 7. TIMISOARA BRANCH Tel: 00355 52 24766-8 Tel: 00355 4 200 266/228 1-2 Marasti Square, 300 086 Timis County Fax: 00355 52 26998 Fax: 00355 4 200 421 Tel: 0040 256 435881/888/889 Fax: 0040 256 435908 10. POGRADEC 23. KOMBINATI BRANCH Lagja Nr1 "Rruga Rreshit Collaku" Rruga "Hamdi Cenoimeri" 8. PLOIESTI BRANCH Tel: 00355 8326117-9 Kombinati 13, Cuza Voda St., block D6, ground floor Fax: 00355 8326116 Tel: 00355 4 350 230-1 Ploiesti 100 019, Prahova County Fax: 00355 4 352 126 Tel: 0040 244 511270 11. GJIROKASTRA BRANCH Fax: 0040-244 511505 Lagja 18 Shtatori, Gjirokastra 24. SHENGJIN AGJENSI-BORDER Tel: 00355 846 2297,4125 Tel: 00355 281 2480 9. GALATI BRANCH Fax: 00355 846 5112 1-1 bis Nicolae Balcescu Str, Galati Tirana Leasing S.A. Galati Country, Romania 12. GJIROKASTRA - KAKAVIJA BORDER Ismail Tower 2nd Floor Tel: 0040-236 414888, 415566, 471022, 471029 Tel: 00355 68 2053196 Tirana, Albania Fax: 0040-236 418700 Fax: 00355 884 90012 Tel: 00355 4 258 434/454/458 Fax: 00355 4 258 397 10. BRASOV BRANCH 13. KORCE BRANCH 5, Piata Sfatului, Brasov, Romania Lagjja 7, Rr Deshmoret 6, Korce Tel: 0040 268 416 552 Tel: 00355 82 50000, 50200, 50300 ROMANIA Fax: 0040 268 416 653 Fax: 00355 82 42482 Piraeus Bank Romania S.A. 11. SIBIU BRANCH 14. KAPSHTICE AGJENSI-BORDER 1. HEADQUARTERS 16, Piata Mare, Sibiu County, Romania Tel: 00355 68 2055647 & MAIN OFFICE Tel: 0040 269 227 484 International Business Center Fax: 0040 269 245 920 15. VLORE BRANCH 34-36, Carol I Blvd. Blv. Vlore Skele, Vlore 2nd District 12. PITESTI BRANCH Tel: 0035533 25016, 25021, 25416 Bucharest 020 922 1, Piata Muntenia, Pitesti County, Romania Fax: 00355 33 25884 Tel: 0040 21 2506798/3036900 Tel: 0040 248 610 198/610 072 Fax: 0040 21 2501799 Fax: 0040 248 611 026 16. ELBASAN BRANCH Lagjja Dyli - Haxhire, Elbasan 2. UNIRII BRANCH 13. ORADEA BRANCH Tel: 00355 54 41759-61 1, Unirii Square, 3rd District 5 Piata Unirii Fax: 00355 54 41870 Bucharest 030 119, Unirii Oradea, Judetul Bihor, Romania Tel: 0040 21 3132911 Tel: 0040 259 415 210 17. SHKODRA BRANCH Fax: 0040 21 3132830 Fax: 0040 259 415 244 Lagjja Vasil Shanto Rruga "13 Dhjetori" Shkodra 3. CALEA VICTORIEI BRANCH 14. CLUJ BRANCH Tel: 00355 22 48650,48655, 48670 2-4, Stirbei Voda st., 11-13 Piata Mihai Viteazul Fax: 00355 22 48615 1st District, Bucharest 010 111 Cluj-Napoca, Judetul Cluj, Romania Calea Victoriei Tel: 0040 264 434 816 18. SARANTA Tel: 0040 21 3153016/3090/3092 Fax: 0040 264 434 814 Lagja Nr. 2, Rruga "Skenderbeu", Sarande Fax: 0040 21 3153058 Tel: 00355 852 6176, 6177, 6178 15. UNU MAI BRANCH Fax: 00355 852 6179 4. STEFAN CEL MARE BRANCH Ion Mihalache 42-52, bl.35 Soseaua Stefan Cel Mare Bucharest, Romania 19. LUSHNJA Nr.5, Sector 2 Tel: 0040 21 25860/25806/25732 Lagja "Skender Libohova" Lushnje Tel: 0040 21 2100 676 Fax: 0040 21 25897 Tel: 00355 35 23509, 23608, 23707 Fax: 0040 21 2100 686 Fax: 00355 35 23484 Piraeus Leasing Romania S.A. 5. ALBA-IULIA BRANCH International Business Center 20. KAVAJA BRANCH 80, Unirii Boulevard, District 3 34-36 Carol I Boulevard Bucharest-2 Lagja Nr.5 "Kavaje", Albania Piata Alba-Iulia, Bucharest Romania Romania Tel: 00355 5 5475 43 Tel: 0040 21 320 3606 Tel: 0040 21 303 69 26 Fax: 00355 5 5475 50 Fax: 0040 21 320 3616 Fax: 0040 21 303 69 37
95 PiraeusUK_77_96.qxd 13/04/05 14:49 “ Æ96
The photographic themes in the "2004 Annual Report" focus on Piraeus Bank Group’s customers. The photographs are actual snap shots of productive processes and employees in action of the firms that belong to our clientele. Piraeus Bank and its subsidiaries support the plans and growth of its corporate clients through their products and make the dreams of its individual customers come true. The modern products and services offered by Piraeus Bank Group are sealed by the motto that accompanies the logo of Piraeus Bank "The Bank which cares for you", stressing once again our client- oriented concept.
Conception and Graphic Design: PIN Communication, Photography: Peter Christensen Colour Seperation and Printing: PAPADOPOULOS Full Printed Communication S.A. Cover_UK.qxd 07/04/05 13:25 “ Æ1