Hellenic Bank to expand into Russia

Hellenic Bank Pcl (HB) announced that it has received the consent of the Central Bank of Cyprus, to prepare and submit to the Supervisory Authorities of the Russian Federation an application for the establishment of banking operations in Russia.
Hellenic Bank Group CEO Makis Keravnos announced that Hellenic Bank submitted an application to the Central Bank for the opening of a Bank in Moscow, during the press conference for the publication of the six months results of the Group and the revision of financial targets of the Group’s Three Year Plan 2007 – 2009.
Hellenic Bank is now proceeding with the completion of the relevant application to the Russian Authorities, for the establishment of banking operations in Russia.

Keravnos said the Bank is currently in the process of opening two representative offices in Kiev and St. Petersburg for which it has been granted Central Bank approval.

Keravnos would not be drawn into discussing when the permits will be granted citing the fact that the whole issue needs the careful scrutiny of the authorities in Cyprus and Russia, a process that may take a while.

Following the excellent performance achieved in the first half, Hellenic Bank proceeded to revise higher its targets until 2009.

Keravnos said management has revised its 3-year financial targets upwards leaving further gap for improvement upon the announcement of its 9M07 results. The following

guidance were given:

(a) Total Incomes for FY07 /08 /09 at CYP 178 mln, CYP 186 mln, CYP 205 mln;

(b) Cost to Income for FY07 /08 /09 at 52.9%, 51.1%, 49.0%;

(c) Cost of risk for FY07 /08 /09 at 05%, 0.6%, 0.6%; and

(d) Before Tax Earnings for FY07 /08 /09 at CYP 76 mln, CYP 77mln and CYP 88 mln.

We believe that Hellenic Bank has once again used a rather conservative approach to set out its new targets and when we asked Keravnos when, not if, the Bank will proceed with another revision of its targets, the CEO replied, “we shall do so if and when there is a need according to developments.”