Piraeus grants 702m-euro credits and gains 4.5m euros

Piraeus Bank last year witnessed a 4.5 million-euro gross profit, almost triple the level seen in 2005, according to data published in Athens. Parent bank Piraeus Bank Greece reported assets worth 972 million euros on the Romanian market, an increase of 92% against 2005. Piraeus Bank also reported assets worth almost 570 million euros in 2006 to the NBR (National Bank of Romania). The 400 million-euro difference could be accounted for by outsourced credits in foreign currency, a solution that several banks resorted to last year in order to comply with the limit imposed by the NBR. As of January 1, there is no longer a given limit for the foreign currency credit. According to data published in Athens, the credit portfolio related to the Romanian operations climbed to 702 million euros, 1.8 times higher than in 2005, while the volume of deposits attracted reached a mere 295 million euros, as the bank relied on foreign lines of financing and recapitalisation from the parent bank. The Greek group appraised its Romanian branch at 490 million euros, based on three internationally accepted methods, also taking into account the multiples considered in the recent transactions on the bank market. The Bulgarian branch is considered to be worth 680 million euros. Overall, the group appraised its branches outside Greece – in Albania, Bulgaria, Romania, Serbia, Egypt, London and New York – at some two billion euros. According to data reported to the NBR, Piraeus Romania last year reached a 1.1% market share.