Piraeus Bank presents Agenda 2020 strategic plan

Piraeus Bank aims to become the most reliable bank in Greece, creating value for its shareholders, customers and workers, Christos Megalou, the bank’s CEO said on Wednesday.

Presenting the group’s strategic plan by 2020, called “Agenda 2020”, to reporters, Megalou said that the bank’s goal was to dynamically fund the Greek economy. More specifically, the Greek banker said the bank’s goal was to raise new funding from 2.0 billion euros in 2016 to 5.0 billion in 2020, on an annual basis, and said this goal was fully feasible. Megalou said emphasis will be given to funding small- and medium-sized enterprises -the biggest part of the bank’s loan portfolio.

The main goals of the Agenda 2020 strategic plan are:

-reducing NPLs and NPEs to internationally accepted levels,

-creating a profitable and sustainable business model, with attractive returns for shareholders in the medium-term,

-maintaining a strong capital base,

-restoring autonomous access to capital markets.

Speaking to reporters, Megalou said a bank estimate for a 0.7 pct growth rate in Greece this year was conservative and noted that the economy could grow by 1.5 pct, rising to 2.3 pct in 2020, while unemployment is expected to fall to 16.3 pct. The Greek banker also estimated a deposits return of around 35 billion euros in the period up to 2020 and noted that loans in the Greek market were expected to be affected by write offs and sales worth 25 billion euros by that time.

Megalou said Piraeus Bank aimed to bring its dependence from ELA down to zero by 2020 from 11 billion euros in 2016 and stressed that around seven loan management companies were expected to begin operations in the country by the end of 2017. He noted it would take around one decade to reduce NPLs below 5.0 pct of total loans.