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Eurobank Cuts Costs Again by € 100 Million

29 June 2014 / 21:06:57  GRReporter
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Returning to making profit as soon as possible is the main objective of Eurobank’s strategic development plan presented on Saturday by the bank’s CEO Christos Megalou at the Annual General Meeting of the Shareholders.

Mr. Megalou underlined that the development plan is based on three main points:

1. Risk management and overdue loans
2. Strengthening customer relationships to maximize revenue and improve liquidity
3. Transforming the operational model in order to increase efficiency and reduce operating costs

Management of Overdue Loans

Eurobank’s CEO emphasized that the first-stage priority is intended for the management of non-performing loans. For that purpose, Eurobank has taken a series of initiatives for internal reorganization.

According to Mr.Megalou, the bank is "the first Greek bank to set up an independent unit focusing on management of problem loans (Non-Performing Customers Group). Moreover, in cooperation with other banks, we have taken joint initiatives for managing cases of problem loans and for restructuring sectors and companies".

Christos Megalou, picture

Christos Megalou stressed that another specialized unit was established (Remedial Unit), aiming to support customers who have serious problems in servicing their loans, but where the possibility of recovery is indicated.

Thus, according to him, other bank units will be exempt from this obligation.

New Services

As stated by Eurobank’s CEO, “the goal is to concentrate all our efforts on developing the services we provide. By funding healthy business initiatives, starting from this year, we are aiming at sustainable recovery of net revenue before prognosis. The increase of income from fees and commissions is expected to contribute to improved revenue too.”

Meanwhile, "we continue trying to further reduce operating costs at all levels," said Christos Megalou, adding that the goal in 2014 is to decrease costs by 100 million euro, which will be assisted also by synergies resulting from mergers.

Management Changes

The General Meeting of the Shareholders will also validate changes in the Board of the Bank, which will include representatives of the new shareholders after the last increase in share capital.

The new members offered by Fairfax and WLR Recovery Fund, which control the management of the bank are as follows:

- Panayiotis-Aristidis Tomopoulos
- Fokion Karavias
- Georgios Chriskos
- Wade Sebastian R.E. Burton
- Jon Steven B.G. Haick
- Bradley Paul L. Martin
- Josh P. Seegopaul

Apart from them, the Management Board will comprise Christos Megalou and Spiridon Lorendziadis. The new board will consist of 11 members, including representatives of the Financial Stability Fund and the state.

The new head of the Board will be Panayiotis-Aristidis Tomopoulos, and Christos Megalou will continue to be CEO.

Kalandonis’ Return

The bank management will be affected by other changes too. A former senior manager will be returning to the bank – Theodoros Kalandonis, currently Alpha Bank’s General Director.

According to the information, the experienced banker will be in charge of the retail banking sector . It is noted that the banker left Eurobank immediately after change of ownership as a result of the bank’s recapitalization in 2013 with capital from the Financial Stability Fund.

Head of Central Services at Eurobank will be Stavros Ioannou, General Director of Eurobank.

Тopics of the General Meeting

At the General Meeting will be approved the following:

1. Annual financial statements for the financial year of  2013. Reports of Directors and Auditors

2. Discharge compensation of directors and auditors

3. Selection of a company of chartered accountants and auditors for the financial year 2014 and determining its fee

4. Increasing the number of board members. Election of new members.

5. Election of Supervisory Committee members

6. Determining remuneration of board members


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