National Bank of Greece shareholders approved the sale of Finansbank and Finans Leasing

National Bank of Greece (NBG) shareholders on Monday approved the sale of the bank’s subsidiaries in Turkey, Finansbank and Finans Leasing, during an extraordinary general shareholders’ meeting. NBG had signed an agreement for the sale of its capital share in Finansbank to Qatar National Bank on December 21, 2015 for 3.5 billion euros.

National Bank will be the strongest bank in the Greek banking market, based on its capital and liquidity, with the aim to play a leading role in the recovery of the Greek economy and of social cohesion after completion of the sale of its subsidiary in Turkey, Finansbank, Luca Katseli, the bank’s chairman said earlier.

Addressing the extraordinary general shareholders’ meeting, Katseli said that completion of the deal will offer a significant boost in liquidity to the bank, 3.5 billion euros, which will be distributed to fund Greek enterprises and households while at the same time it will fortify the solvency and capital adequacy of National Bank.

The Greek banker said that completion of Finansbank’s sale will allow National Bank to repay the biggest part of CoCos, worth 2.0 billion euros, offering benefits of around 150 million euros on an annual basis, repay the expensive Pillar 2 bonds and to gradually decoupled from ELA, offering significant flexibility and higher profitability to the bank (around 100 million euros annually).