In a highly competitive market, the Laiki Group continued to show exceptional growth and improved profitability. In 2005, net profits rose by 102.7% and total assets increased by 21.1%, while RoE almost doubled to 13.1%. The bank attributes the improved profits in part to a significant increase in debt collections in 2005, when its NPL ratio fell from 11.5% to 10%. It believes that the good performance is sustainable and will continue to grow because it is based on a customer-centric strategy that maximises customer satisfaction, loyalty and business.
The bank has adjusted its overseas expansion strategy and is now not only looking at countries with substantial Greek and Cypriot communities, but also looking at countries with good growth prospects, especially in the Balkans. In January 2006, the group acquired a small Serbian bank Centrobanka, renaming it Laiki Bank.
“Laiki Group in 2005 continued its upward trend, based mainly on its international expansion and improved efficiency,” says CEO Marios Lanitis. “A major recent development was the decision for the merger of Laiki Group with Marfin Financial Group and Egnatia Bank from Greece, taken at the end of October 2006. The new entity, under the name Marfin Popular Bank, will be based in Cyprus and will be characterised by high liquidity and very favourable growth prospects.
“There are ambitious plans for expansion in the Greek market, south-eastern Europe and the Middle Eastern countries. The new group will benefit from increased size and synergies relating to revenues, cost savings and cross-selling.”
