Within the framework of its strategic expansion in the markets of Southeastern Europe and the enhancement of its international banking activities, Piraeus Bank Group proceeded with the signing of an agreement with Petrol Holding A.D., for the acquisition of 99.7% of the share capital of the Bulgarian Bank Eurobank.
Eurobank operates in the Bulgarian market for more than 10 years and possesses 48 outlets in the country, through a network of 30 branches and 18 offices. Eurobank’s total assets amount to €220 mn, total loans (after provisions) to €120 mn, customer deposits to €165 mn, while it employs 600 people.
It is worth mentioning that Eurobank’s branch network is complementary to Piraeus Bank’s network in the country. Thus, following this acquisition Piraeus Bank Group strengthens its presence in Bulgaria, by creating a well-distributed network of 61 outlets in 28 cities. Total customers’ deposits amount to €225 mn and total loans to customers to €310 mn, resulting to a Group’s market share in Bulgaria of over 4.2%.
Following this acquisition, Piraeus’ total investment in Bulgaria amounts to €53 mn and the estimated after tax profit for 2005 amounts to €9 mn.
Piraeus Bank’s expansion in the Bulgarian banking sector is considered as a strategic investment, as the banking sector’s figures in Bulgaria are improving rapidly (loans to customers increased by 37% in 2004), and the banking intermediation indices remain in very low levels, indicating the significant potential for further growth.
Besides Bulgaria, Piraeus Bank has developed significant banking activities in Romania and Albania, owning a total network of 98 branches in these three countries, total assets in the range of €1 bn and total loans of €580 mn.
Piraeus Bank plans to continue its development in the whole region by accelerating the expansion of its network and its operations.
The agreement will be finalized soon, after the approval of the Supervisory Authorities in Greece and Bulgaria.