Almost 80% shareholder participation at Piraeus Bank AGM

Piraeus Bank announces it held the Annual General Meeting (AGM) of shareholders today (26 May), and all proposed resolutions were passed with the required majority.

For the first time at a Piraeus Bank AGM, shareholder participation reached 80% of total share capital. This reflects the strong interest and trust in the Bank’s plans and prospects from Greek and international investors. Institutional investors, international funds and the Hellenic Financial Stability Fund all participated to the Annual General Meeting.

The AGM of shareholders unanimously approved the 2015 financial statements and Management review.

Discussing the 2015 results and outlook for 2016, the bank’s Managing Director Stavros Lekkakos pointed out: “Following share capital increases in 2015, Greek systemic banks are amongst the best capitalised European banks in terms of regulatory capital with an average Common Equity Tier-1 at 17% -18%.

“The sector has proved resilient, despite suffering considerable hardship and challenges since the start of the financial crisis. The ongoing support of the European Central Bank and international institutions has been a key factor in this resilience, as has the trust of private investment funds even at the most challenging moments.

“With regard to NPLs, Piraeus Bank achieved a strong deceleration of the NPL formation rate in the period 2014-2015, and there was only a marginal increase in the last challenging months of 2015 following the enforcement of capital controls. Looking ahead to 2016, we have provided evidence to the markets that we are on target to considerably reduce the balance of NPLs, and our performance in Q1 2016 and Q2 2016 so far supports this target. In the two quarters from October 2015 to March 2016, Piraeus Bank has effectively managed a reduction in the balance of NPLs of €1.2 billion.”

Immediately following the AGM, Piraeus Bank Chairman Michalis Sallas said: “The completion of the economic program review is a major development. The agreement with the international institutions will stabilize the economic environment and enhance the prospect of the Greek economy's exit from the crisis.

“This will enable the Greek banking system to provide more financing to small and large businesses, while also facilitating the gradual decline in non-performing loans. Banks are starting to regain the crucial role that they should be playing in the restructuring of the Greek economy, given that they are on course to obtain higher liquidity and have a very strong capital base.

“Piraeus Bank’s restructuring plan is already underway and is progressing well. The restructuring plan will enable us to respond optimally to the new market conditions and contribute decisively to the recovery of the Greek economy; a new production model for the country. We are acting fast, as you would expect considering Piraeus Bank’s size and scale accounting for 35% of business loans in Greece.

“As always, I continue to be guided by the interests of all Bank shareholders, as well as the interests of the Greek economy. Our immediate priorities are the continued effective management of non-performing loans, the restructuring of key business sectors and the strengthening of the competitiveness of Greek businesses, capitalizing on the stability created by the country’s position at the heart of Europe, and the program and assistance provided to the Greek economy by the international institutions.

“With this philosophy, and the concrete restructuring plan we are rolling out, Piraeus Bank is rising to its new challenges, improving its prospects and entering this new period with confidence and stability for its customers and shareholders. The Bank has also taken major steps in the area of Corporate Governance in respect of the regulations pertaining to the new European framework and the banking union.

“Together with specialized organizations, the bank is exploring incentives targeted towards retail investors, loyal depositors and responsible borrowers. These incentives aim to recoup part of the significant losses incurred by these shareholders not related to bonus shares or other types of securities, as it is strictly prohibited by law, but to other banking products and reward tools. Piraeus Bank will make every effort to assist all those who have supported the Bank in recent years.”

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