1st Annual Greek Roadshow
London, September 20-21, 2006
History - Profile
Company Name:
1925
Founding Year
Bank of Attica S.A
1964
Part of Emporiki Bank Group,
Initial Public Offering (ASE)
Logo:
Major change in Shareholders’ stakes,
Major Shareholders: T.S.M.E.D.E.,
L.C.F.
23 Omirou Street, 10672,
Athens, Greece.
1997
2001
Establishment of Financial Group
2003
Major Shareholders: T.S.M.E.D.E.,
Greek Postal Savings Bank, L.C.F.
Headquarters Address:
Telephone Center:
+302103669000
Web Address:
www.atticabank.gr
-TSMEDE stands for the “Engineers & Public Works Contractors’ Pension Fund”
- LCF stands for “Loans & Consignements Fund”
Major Shareholders
Shareholder
Number of
Shares
Equity
Participation
Figures & Description
TSMEDE
“Engineers &
Public Works
Contractors”
Pension Fund
Greek Postal
Savings Bank
34,653,108
15,771,115
41.96%
TSMEDE had approximately 96,000 members and
12,500 pensioners as of December 31st, 2005. Its total
assets were €2,560 million at the end of 2005.
19.10%
State owned financial institution, listed at the Athens
Stock Exchange since June 2006. Its total assets were
€11,564.6 million and profits before taxes were €149.9
million at the end of 2005.
19.13%
State owned financial institution. It holds trust funds
and accepts deposits on behalf of the State.It also
provides mortgages to civil servants and loans to local
authorities. Its total assets were €10,245.6 million and
its profits before taxes were €248 million at the end of
2005.
TPD
“Loans &
Consignments
Fund”
15,798,566
As at August 2006:
-Number of Shareholders: 24,575
-Number of Shares: 82,577,910
Attica Bank Group
ATTIKI
AEDAK S.A.
ATTIKIS
LEASING
S.A.
ATTICA
VENTURES
S.A.
ATTICA
CONSULTING
AND TRAINING
SERVICES S.A.
ATTICA
FUNDS
PLC .
ATTICA
INSURANCE
AGENCY
Special
Purpose
Vehicle
(SPV)
Intermediation
and Promotion
of Insurance
products
Mutual Funds
Management
Company and
Investment
Services
Financial
Leasing
Private
Equity
Consulting &
Training
services, Project
management
2001
2001
2003
2001
03/2005
10/2005
Capital
€ 1.97
million
€9
million
€ 0.6
million
€ 1.32 million
12,500
GBP
€ 0.1 million
Bank’s
Share
58.44% (*)
99.99%
99.99%
99.99%
99.99%
99.99%
1.2
608.0
74.9
(4.1)
280.1
674.1
180.8
52.4
Activity
Founded
Profit
(before tax)
- 12/2004
in 000 €
- 12/2005
in 000 €
(*) “Attica Consulting & Training Services” holds the other 41,56% of “Attiki AEDAK” Capital
Products & Services
Attica Bank, together with its subsidiaries, offers a wide range of financial services to
retail customers and corporate clients. The Bank is principally active in lending to
small and medium sized enterprises (SMEs) and retail consumers, and also offers a
variety of investment products, mutual funds, brokerage services and bancassurance.
Consumer
Services
Business
Deposit Accounts
Standing Orders
Deposit Accounts
(Current, Sight, Time, Repos, F/X)
Money Transfer
(Demand, Time, Repos, F/X)
Loans
(Cheque processing, SWIFT
transfers, foreign & domestic
money orders)
Loans
(Visa, Electron, Gift Card)
Import / Export
Leasing
Investment Products
(handling of shipping
documents, letters of credit)
Factoring
(Mortgages, Consumer, Open)
Credit & Debit Cards
(Mutual Funds, Capital
Guarantee)
Bancassurance
Payroll and pension
payment services
(Working Capital, Long
Term Loans)
Letters of Guarantee
Branch Network, Employees
The Bank’s distribution network
covers the major Greek cities and
consists of:
8
• 62 branches
(28 branches in or around Athens, 8 branches in
Thessaloniki, and 26 branches in other main cities)
• 70 ATMs
28
(Most of the Bank's ATMs are located at the Bank's
branches although 8 ATMs are independent and are
located in public entities to facilitate payroll
services)
YEAR
2002
2003
2004
2005
6M 2006
EMPLOYEES
1076
1085
1095
1102
1143
Attica Bank Total Assets Evolution
Total Assets
(in million euros)
3000
2,768.1
C.A.G.R= 15.98%
2,468.8
2500
2,393.6
2,035.5
2,018
2000
1,715.2
1500
1,224.9
1000
500
0
2000
2001
C.A.G.R: Compound Average Growth Rate
2002
2003
Figures after 2003 are subject to IFRS
methodology
2004
2005
6M 2006
Attica Bank Loans Evolution
LOANS
(in million euros)
C.A.G.R= 25.21%
2,016.2
1,829.6
1,791.1
1,484.2
1,091.3
844.2
585.5
2000
2001
C.A.G.R: Compound Average Growth Rate
2002
2003
2004
Figures after 2003 are subject to IFRS
methodology
2005
6M 2006
Loans Portfolio
Attica Bank Deposits Evolution
DEPOSITS
(in million euros)
C.A.G.R= 18.9%
2,278
2,085.1
1,955.9
1,699.6
1,527
1,376.1
879.7
2000
2001
C.A.G.R: Compound Average Growth Rate
2002
2003
2004
Figures after 2003 are subject to IFRS
methodology
2005
6M 2006
Deposits Portfolio
Attica Bank Market Shares (loans, deposits)
(*)
MARKET SHARES (*)
1.52%
1.51%
1.35%
1.26%
1.14%
1.22%
2001
1.50%
1.31%
1.23%
1.11%
2002
2003
2004
LOANS
2005
1.32% 1.30%
5M 2006
DEPOSITS
(*) Market defined as Total Deposits at 1) Monetary Financial Institutions including the
Bank of Greece, 2) other Credit Institutions and 3) Money Market Funds
Corporate Governance
The Bank has set up the following supervisory bodies and transparency mechanisms:
Board of Directors:
Membership to the Board of Directors is in line with Corporate Governance regulations. Nine out of its eleven
members are non-executive, two of which are also independent.
Audit Committee:
The Board of Directors has appointed non-executive members to the committee, including an independent member.
The committee supports the Board of Directors monitoring the adequacy and efficacy of the internal audit system,
facilitating the Board of Directors’ communication with internal and external auditors, as well as scrutinising the
quality of published financial accounts.
Internal Audit Department:
The department runs systematic and continuous checks on the Bank’s operations on the basis of its Corporate
Statute, its internal regulation and the strategies and policies set by the Board of Directors and the Bank’s senior
management, in accordance with the current institutional, regulatory, and legislative framework.
Shareholder Registry and Corporate Disclosure Units:
The Bank has set up two units to facilitate the broader investment public and its shareholder base in relation to
registry matters and corporate disclosure. The units are responsible for notifying the stock market authorities on
important corporate developments and insider trades, as well as maintaining the Bank’s shareholder registry and
servicing its shareholders and other investors.
Corporate Governance
Risk Management Department:
The Bank views risk management as a constant concern, based on precise, demanding criteria designed to restrict
risk to limits considered acceptable for the business areas and markets in which it is involved, taking into account the
different nature of the risks assumed and the Bank’s strategy. The Risk Management Department is specifically
involved in identifying, monitoring, reporting and controlling risks with a potentially significant effect on the Bank’s
balance sheet. These include market risks, liquidity risks, credit risks and operational risks.
ALCO:
ALCO is responsible for defying the strategy regarding the balance sheet items evolution and the developments in the
business environment. Moreover, ALCO is accountable of reviewing the risk exposures of the Group business units
and of deciding for the proper allocation of the Bank’s and the Group’s funds.
Bank’s Income Statements
In thousand euros
(*) One off expenses: 2,500 thousand euros based on early retirement benefits and
4,000 based on dishonest and fraudulent acts by employees
The Bank has doubled its provisions for
bad debts to clear its loans portfolio
Consolidated Income Statements
In thousand euros
(*) One off expenses: 2,500 thousand euros based on early retirement benefits
and 4,000 based on dishonest and fraudulent acts by employees
The Group has doubled its
provisions for bad debts to clear
its loans portfolio
Balance Sheet Data
C O N S O L ID A T E D B A L A N C E S H E E T
( A m o u n t s in t h o u s a n d s € )
3 0 /6 /2 0 0 6
3 1 /1 2 /2 0 0 5
3 1 /1 2 /2 0 0 4
I n v e s t m e n t p o r t f o lio
I n v e s t m e n t s in s u b s id ia r ie s
I n t a n g ib le a s s e t s
P r o p e r t y , p la n t a n d e q u ip m e n t
D e fe rre d ta x a s s e ts
O th e r a s s e ts
T o ta l a s s e ts
133395
361660
9919
0
1961872
168040
0
6577
33033
22387
71241
2768123
93311
344719
18424
92
1787542
145948
125
7084
31849
21945
64100
2515138
85863
368192
46780
5
1726874
89606
0
6519
28393
16166
49345
2417743
L IA B IL IT IE S
A m o u n t s o w e d t o o t h e r f in a n c ia l in s t it u t io n s
D e p o s it s d u e t o c u s t o m e r s a n d s im ila r lia b ilit ie s
D e r iv a t iv e f in a n c ia l in s t r u m e n t s - lia b ilit ie s
Is s u e d b o n d s
P r o v is io n s f o r r e t ir e m e n t b e n e f it s
O t h e r p r o v is io n s f o r r is k s a n d lie n s
D e f e r r e d t a x lia b ilit ie s
O t h e r lia b ilit ie s
T o t a l lia b ilit ie s
124293
2275807
78
148960
35750
6357
750
23061
2615058
172718
1954154
14
148986
37436
2205
713
45694
2361921
88017
2065800
33
10000
36752
3128
353
25727
2229810
28902
157527
-5 6 3 6 1
22997
153065
28902
157527
-5 6 6 5 1
23439
153217
28902
157527
-5 2 7 1 9
26372
160082
0
153065
2768123
0
153217
2515138
27851
187933
2417743
ASSETS
C a s h a n d b a la n c e s w it h C e n t r a l B a n k
D u e f r o m o t h e r f in a n c ia l in s t it u t io n s
T r a d in g p o r t f o lio
D e r iv a t iv e f in a n c ia l in s t r u m e n t s - a s s e t s
L o a n s a n d a d v a n c e s t o c u s t o m e r s ( a f t e r p r o v is io n s )
E Q U IT Y
S h a r e c a p it a l
S h a r e p r e m iu m a c c o u n t
A c c u m u la t e d p r o f it / lo s s
R e s e rv e s
N e t e q u it y o f c o m p a n y ’s s h a r e h o ld e r s
M in o r it y r ig h t s
T o t a l e q u it y
T o t a l lia b ilit ie s a n d e q u it y
Financial Ratios
(*) Source: The Banker, Top 1000 World Banks.
(*) one-off expenses excluded
(**) 64.7% (EU-12) Dec.2004
NOTES
- ROE, ROA are before taxes
- NPL’s: The Bank considers as Non Performing Loans, the loans when either interests or capital have not
been paid for the period of 6 months, regardless of the collateral held.
Domestic Economic Environment
CREDIT EXPOSURE
GREECE
EUROZONE
(% of GDP)
December 05 December 05
Business
45
63
Households
38
54
25
38
mortgages
13
16
consumer
The evolution of the Greek banking sector is very likely to
be continued as it is on average still less developed
compared to the other Eurozone states banking industry
CREDIT EXPANSION
PROSPECTS STILL STRONG
% of GDP
Real GDP Growth
Eurozone
Households
5,00%
63
38
16
4,00%
Greece
Business
45
25
13
3,00%
-10
2,00%
10
30
Business
1,00%
50
mortgages
70
90
110
consumer
Greece
Eurozone
0,00%
2000
2001
2002
2003
2004
2005
6M 2006
GREECE OUTPERFORMS
EUROZONE in GDP Growth
130
150
Structure of the Greek Banking System
The Greek banking sector
has expanded rapidly in the
last 10 years as a result of
deregulation and the
Greece’s entry into the
Eurozone in 2002.
The deregulation of the
banking sector triggered a
number of consolidation
initiatives. These changes
have led to a high
concentration of the Greek
banking sector as 5 banks
account for approximately
66% of the total assets,
compared to an
approximately 58% in 1996.
SWOT ANALYSIS (*)
Strengths
Weaknesses
Strong links with existing customers
Relatively low capital adequacy ratios
Strong links with specific market segments and
pension funds (civil engineers, the Civil
Engineers and Public Works Contractors’
Pension Fund -TSMEDE)
Small branch network
Flexibility
Rewards are not linked to
performance
High Cost/Income ratio
Customized products that fully satisfy the
customers’ needs
Opportunities
Threats
Positive outlook for the Greek banking sector
Concentration tendencies in the
Greek banking sector, backed by
foreign capital, intensify
competition in all products
Taking full advantage of the Bank’s flexibility
Taking full advantage of the privileged access to
specific market segments and pension funds
Further development in sectors where the Bank’s
share is still small (e.g. consumer loans and
mortgages)
Profit margins generally tend to
decrease
Increasing cross-sales
Taking full advantage of alternative networks (offsite ATMs, e-banking etc.)
* KPMG Report, September 2006.
Attica Bank: Strategy
The new management that was appointed in July 2004 had as a top priority the rationalisation of the balance sheet
figures by clearing the Bank’s loan portfolio and the optimum allocation of capital on a group wide basis.
Over the next 3 years the Bank will seek to significantly increase its market share of loans and to substantially
improve the results of other key operations. The key strategies for reaching these goals are shown below:
Optimization of Organizational Structure, to enhance client focus and attain execution of our strategic goals
Focus on high margin segments (SMEs, Households)
Turn IT infrastructure into competitive advantage:
• fully functional legacy system (Globus),
• e-banking services
• Implementation of CRM system
Further Exploitation of Bank’s Customer Base (Engineers)
Cross Selling Opportunities:
• Bancassurance
• Mutual Funds
• Stock Exchange Transactions
Effective Risk Management (Market, Credit, Operating, Liquidity)
Implementation of Employee Motivation Programs & Continuous Training
Reduction of the cost/income ratio by 10% in the next years, by rationalization of the cost and increasing the income
Branch Network Expansion & Rationalization
Attica Bank Group: Strategy
Top and Bottom line Growth for all Subsidiaries
Exploitation of Synergies
Establishment of new Subsidiaries (capturing of new opportunities) as Asset and Liability Management
Creation of One Central “Investment Management Centre” for the Whole Group.
Comparative Graph: Attica Bank vs. Indexes
AtticaBank
ASE Index
Historical
Data
Bank Index
170,00
Stock and Indexes Prices are modified on a 100 base
160,00
150,00
140,00
130,00
Source: Bloomberg
120,00
110,00
100
100,00
90,00
80,00
70,00
31/8/06
30/6/06
30/4/06
28/2/06
31/12/05
31/10/05
31/8/05
30/6/05
30/4/05
28/2/05
31/12/04
Privatisation of Attica Bank
AtticaBank
Bankisisunder
underindirect
indirectstate
statecontrol,
control,as
astwo
twoof
ofthe
theBank’s
Bank’smain
main
•• Attica
shareholders(Greek
(GreekPostal
PostalSavings
SavingsBank
Bankand
andthe
theLoans
Loansand
and
shareholders
ConsignmentsFund)
Fund)are
arestate
stateowned
ownedorganisations.
organisations.
Consignments
Theprivatisation
privatisationof
ofAttica
AtticaBank
Bankwill
willbe
beaccomplished
accomplishedthrough
throughthe
thesale
saleof
of
•• The
the19.10%
19.10%held
heldby
bythe
theGreek
GreekPostal
PostalSavings
SavingsBank
Bankand
andof
ofthe
the19.13%
19.13%
the
heldby
bythe
theLoans
Loansand
andConsignments
ConsignmentsFund.
Fund.
held
Theprivatisation
privatisationof
ofAttica
AtticaBank
Bankisisexpected
expectedto
totake
takeplace
placesome
sometime
timeafter
after
•• The
October2006.
2006.
October