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Piraeus Bank Cyprus has been swamped with applications from the public to open accounts during the first 80 days of its operations here, banking on the huge success of its “that simple” campaign.
Constantinos Loizides, Chairman and Managing Director of Piraeus Bank (Cyprus) Ltd., said that the phenomenal success of the launch of operations in Cyprus gives the Group the necessary momentum to push forward with its dynamic expansion plan, which in the initial stage centres on the retail and corporate sectors. At a later stage, investment banking services will also be on offer.
Operating through a network of 10 branches, which will soon increase to 14 and 225 staff, Piraeus Bank Cyprus aims to become a formidable player in the local market and an important member of the Piraeus Bank Group.
It accelerated its entry into the Cyprus market through the acquisition of the operations of Arab Bank in Cyprus for EUR 15 mln, which was completed in January 2008.
In retail banking, Piraeus has adopted an aggressive marketing and pricing policy in attracting deposits, with first results highly encouraging, considering that in the short period of 80 days since the Bank started commercial operations, deposits have galloped up by 53% to EUR 373 mln by April 15, 2008 from EUR 244 mln end of 2007.
“This is because of our simplified campaign of offering 5.2% fixed deposit rate on 12 months euro deposit and 5.3% for 3 months, without any small print or footnotes, plus the fact that all those who open a deposit account become automatically eligible to participate in the draw for EUR 50.000,” said Loizides.
In the same period, Piraeus has seen a 10% increase in loans to EUR 148 mln, even though as yet the bank has not launched an aggressive campaign to offer loans. A more aggressive campaign is to be expected once the new IT systems is installed, which will allow the Bank to offer tailor made products.
For the corporates, Piraeus wants to offer a dedicated and custom made top range service in meeting client needs. “We shall use our strong geographical presence in Greece, the Balkans and other countries, our A1 rating and our strong balance sheet to help corporate clients transact business and spread their wings,” said Loizides.
Springboard to Russia, M.E.
The Cyprus operations will also be used by Piraeus Bank Group as a stepping ground into other regional countries including Russia and the Middle East. Since January, the Group has opened a Representative Office in Moscow which reports to Cyprus.
“After our new IT system becomes operational, we shall be in a position to launch and offer new products aimed at helping our efforts to attract more business from Russia, the ME and other regional countries,” said Loizides, adding that innovative products are on the way from the Bank’s IBU, Asset, Funds and Wealth Management divisions.
Flanked by his two General Managers, Marios Savvides (formerly NKS, Euroinvestment) and George Appios (HB) as well as his strong Cypriot Management team, Loizides said the Bank will also extend its services to cover other areas such as leasing and factoring. In the insurance sector, Piraeus Bank will enter into cooperation deals with 2-3 each from the General Business and Life Insurance companies as opposed to offering its own division.
