Net profits were up 32.1% in the year, with a 46.3% increase in Tier 1 capital and a reduction of the non-performing loan ratio from 2.76% to 2.4%. The bank sustained resilient growth in its domestic market, while continuing to build its international footprint and widen its product range.
There was strong expansion in Poland, Turkey and Ukraine, and by the end of 2007 Eurobank EFG had established a presence in eight countries. The bank completed its acquisition of Turkey’s Tekfenbank and Ukraine’s Universal Bank, while it also made a dynamic entry in the banking market of Cyprus.
The group is transforming itself into a major force in central and south-east Europe, with a network of 1500 branches and points of sale across the group. In total, Eurobank EFG opened 228 new branches and business centres last year, bringing the total network outside Greece to 963 units.
Despite a significant investment in infrastructure and systems to service these markets, efficiency remained at a high level and the cost-to-income ratio was held at 48.1%. Network expansion along with a simultaneous strengthening of the centralised and back-office operations and the establishment of specialised subsidiary companies contributed to the robust growth of volumes and profitability and to improved client service. Net profit from ‘New Europe’ in 2007 stood at €72.6 million, compared with losses in the previous year.
“In the current turbulent and extremely challenging times our group has demonstrated its flexibility and adaptability,” says CEO Nicholas Nanopoulos.
