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International bank | 25
Greeks bearing gifts
Most other banks would have a lot to learn from
this Greek group
by Alistair Riddle,
Credit Manager,
Piraeus Bank
P
iraeus Bank is just seven years a strategic alliance agreement for the Greek PBUK’s new deposit product
shy of celebrating its first cen- market was signed between Piraeus Bank Piraeus Bank UK has a new deposit product
tury. Named after the docks in Group and ING Group. aimed at savers with more than £100,000 (or
Athens – Greece still being In early 2005 Piraeus Bank Group, imple- equivalent in Euros or US Dollars) to place on
world-leaders in shipping – the menting its strategy for expansion in south- deposit for 1,3,6 or 12 months at competitive
Bank has gradually grown dur- eastern Europe and eastern Mediterranean rates. For example, if a customer leaves
ing its first 93 years to the point where it now markets, acquired the Bulgarian Eurobank, £100,000 on deposit for 12 months, he or she
has a true international presence – with which was renamed Piraeus Bank Bulgaria. will receive 1.3 % over and above the 12
operations from the United States to Egypt, The merger of Piraeus Bank branches in month Libor rate (1.92% as at 29th April
from the United Kingdom to the Ukraine. Bulgaria with Eurobank was completed in 2009) – which means an all in rate of 3.22%.
The real expansion of the Group happened March 2006. Furthermore, in 2005, it entered With the base rate expected to reach 0% by the
following privatisation in 1991. Along with into the Serbian market by acquiring Atlas end of year and many banks already paying
its organic growth, Piraeus Bank made a Bank, subsequently renamed Piraeus Bank close to that, the return is very attractive.
series of moves to establish a strong presence Beograd, and entered the Egyptian market by
in the domestic market. Thus, in 1998, the acquiring Egyptian Commercial Bank, then PBUK’s foreign exchange
Bank absorbed the activities of Chase renamed Piraeus Bank Egypt. Finally, in services
Manhattan in Greece, took over controlling 2007, the Piraeus Group further expanded its PBUK has its own Treasury department which
interest in Macedonia–Thrace Bank and international presence in the Ukraine by trades currencies as part of the service that it
acquired the specialised bank Credit acquiring the International Commerce Bank provides its existing customers and for its own
Lyonnais Hellas. (renamed Piraeus Bank ICB) and in Cyprus benefit. The foreign exchange service does not
At the beginning of 1999, the Bank acquired (Piraeus Bank Cyprus) by obtaining a bank- have hidden margins added to the dealt rate,
Xiosbank and absorbed the activities of ing license and acquiring the Cypriot branch commissions or transfer fees. Once the customer
National Westminster Bank Plc in Greece. In network of Arab Bank. has passed the standard account opening proce-
June 2000, the Bank unified its three commer- dure, the process is smooth and straightforward.
cial banks in Greece, creating one of the three Has Piraeus Bank UK (PBUK)
largest private sector banks in Greece. been affected by the ‘credit PBUK’s vision for the future
During this period, the Bank established a crunch’? With its prudent lending, PBUK is enjoying a
presence in London – from where the UK PBUK is a branch of Piraeus Bank SA, the Greek healthy loan book and can employ its
operations continue to this day. The product banking group. As such, PBUK can create com- resources in continuing to create value for
range expanded quickly so that today, whilst fort from being part of the Group’s Balance both the Piraeus Group and its customers. It
undertaking Corporate Finance and Treasury Sheet. Like all Greek Banks, Piraeus Bank is cov- intends to safeguard this position further by
functions for the Bank, the London office, ered by the Greek State Guarantee which is actu- listening to its customers’ concerns and facili-
PBUK, also provides the public with mort- ally slightly higher than the UK Government’s tating their circumstances wherever possible
gages for residential property in Bulgaria and Bank Guarantee. Piraeus Bank has always been while building customer loyalty for the future.
Greece. They are scheduled to expand opera- run prudently, and therefore had not become It is also looking to offer ancillary services and
tions to cover Cyprus and Romania. The involved in ‘toxic debt’. In common with all products addressing concerns of the moment
bank also offers competitive deposit banks, Piraeus Bank found that borrowing funds such as fears of customer deposit security, an
accounts, UK mortgages for HNW individu- over the previous few months had become very attractive interest rate through competitively
als and a foreign exchange service. expensive as liquidity dried up. However with no and fairly priced deposits and a comprehensive
In early 2002, Piraeus Bank acquired the hidden off-balance sheet investments PBUK was foreign exchange service.
Hellenic Industrial Development Bank actually better placed to weather the storm than For more information please contact PBUK on
(ETBAbank). Also, at the beginning of 2002, most of its peers. 0845 603 6538 or visit www.piraeusbank.co.uk.
www.investmentinternational.com May 2009 Investment International
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