Marfin Popular Bank (CPB) reported its 2007 results, with net profit after minority interest up at EUR 563.4 mln, up 129.6% YoY from EUR 245.4 mln, even though last year the reported pro-forma profit was EUR 396.57 mln.
The positive results of 2007 allow the Board of Directions of the Bank to propose to the Annual General Meeting of the shareholders the distribution of EUR0.35 dividend per share which corresponds to a total dividend of EUR279m versus EUR245m last year, an increase of 14%. Dividend payout is 50% of the profit attributable to the shareholders of the Bank.
Total assets for the Group amounted to EUR30.3bn an increase of 34% compared to the pro-forma figures at the end of 2006. Group total loans recorded a robust increase of 47% y-o-y to EUR17.6bn. International loans reached EUR2.34bn or 12.8% of total. In a similar fashion, Group deposits registered growth of 28% and reached EUR20.7bn driven by an increase in the size of the branch network, the gradual maturing of new branches, and expansion of the client base.
Total Group revenues increased by 54% reaching a record for the Group of EUR1,242.4m.Revenues from international operations stood at EUR 86m representing 7% of total revenues. Net interest income (NII) was supported by the robust increase in loans and deposits and reached EUR 669.4m growing at 37% on an annual basis compared to the proforma results of 2006. Net interest margin (NIM) has expanded by 18 basis points to 2.85%.
Fees and commissions income posted a remarkable increase of 54% to EUR 310m boosted by commercial banking, client brokerage, asset management and investment banking fees.
The disposal of stakes held in Bank of Cyprus, Hellenic Bank and Universal Life produced trading income of EUR 118.5m.
Total operating expenses stood at EUR 551.6m rising by 28%. Cost growth was affected by the opening of 16 new branches, relocation of 10 branches, and opening of 10 new business centers in Greece, one new branch in Cyprus, 14 new branches in international locations, the consolidation of the Ukrainian MTB Bank in 4Q07, and various one-off items including a small VRS (Voluntary Retirement Scheme) and a donation to the fire victims in Greece.
Taking into account the one-off items and the amortization of intangible assets relating to acquisitions, the underlying expense growth has been contained to 20% at Group level. The Group’s Cost-to-income ratio improved remarkably to 44.4% compared to 53.3% at the end of last year.
The increase in the Group’s profitability resulted in a significant strengthening of both Return on Average Assets (RoA) to 2.25% (compared to 1.31% at 31.12.06), as well as Return on Tangible Equity (RoTE), which reached 35.5%.
During 2007, a series of important strategic initiatives has been undertaken with the view to improve the Group’s positioning and further enhance its growth prospects in
Successful completion of the operational and legal merger of the three banks in
Branch network expansion: during 2007, 16 new branches and 10 new Business Centres opened in
The
Completion of the acquisition of Marine Transport Bank (MTB) in
Announcement of the agreement to purchase 43% of Lombard Bank Malta plc (LBM) for a consideration of EUR 48.3m, subject to regulatory approvals in Cyprus and Malta.
Announcement of the agreement to purchase 50.04% of OAO Rossisysky Promyishlenny Bank, the parent company of Rosprombank (100% owned) for a consideration of EUR 83m, subject to regulatory approvals in Cyprus and Russia.
 The Board of Directors has also approved a reorganization of the management team as follows:
Andreas Vgenopoulos takes on the position of Executive Vice Chairman of the Group
Efthimios Bouloutas takes over the responsibilities of Chief Executive Officer (CEO) of the Group. Mr. Bouloutas has served as a Deputy Chief Executive Officer of the Group and he was responsible for the Greek Operations.
Kostantinos Vassilakopoulos will be appointed as Chief Executive Officer of Marfin Egnatia Bank, the subsidiary for Greek Operations.
Andrea Moneta joins the Executive Committee of the Bank as Chairman.
The New Executive Committee of the Bank Consists of:
Andreas Vgenopoulos
Andrea Moneta
Eleftherios Hiliadakis
Efthimios Bouloutas
Panagiotis Kounnis
Christos Stylianides
For strategic decisions the Executive Committee is completed with Dimitris Spanodimos, Group Head of Corporate Strategy, and Matteo Stefanel, Group Head of Investment Banking.
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