GEORGE MICHELIS,Ph.D Vice Chairman

1
GEORGE MICHELIS,Ph.DVice Chairman General
Manager
Greek BankingRecent developments, future
prospects
2
Source Ministry of National Economy
3
Source NSSG
4
(No Transcript)
5
(No Transcript)
6
(No Transcript)
7
(No Transcript)
8
(No Transcript)
9
(No Transcript)
10
The consolidation process commercial banks

• 1995 2000
• National Bank of Greece
• Mortgage National Bank of Greece
• Housing
• Alpha Credit
• Ionian Alpha
• Eurobank
• Interbank
• Athens Eurobank - Ergasias
• Crete
• Ergasias
• Piraeus
• Macedonia-Thrace Piraeus
• Xios
• Egnatia

11
Market Shares in Greek Commercial Banks (1999)
Source Year-end Bank Financial Statements
12
Market Shares in Greek Commercial Banks (1999)
Source Year-end Bank Financial Statements
13
Market Shares in Greek Commercial Banks (1999)
Source Year-end Bank Financial Statements
14
Market Shares in the Banking System (1999)
Source Bank Financial Statements and Monthly
Statistical Bulletin of The Bank of Greece Note
Total Assets for the Banking System as of
31/12/99 are not yet available
15
Market Shares in the Banking System (1999)
Source Bank Financial Statements and Monthly
Statistical Bulletin of The Bank of Greece Note
Total Assets for the Banking System as of
31/12/99 are not yet available
16
Branch Network of Greek Commercial Banks (1999)
Source Bank Annual Reports
17
(No Transcript)
18
(No Transcript)
19
(No Transcript)
20
(No Transcript)
21

• Privatisation and consolidation
• Competitive awakening of NBG
• Privatisations create new private sectors groups
  challenging the established players (Latsis
  Group, Piraeus Bank)
• Middle-size players under increasing pressure to
  consolidate

• EMU
• Profits from EMU currency trading will disappear
• Pressure on margins to converge to European
  average
• Preparing for EMU will cost in excess of GRD 150
  billion

Increasingly competitive environment

• Indirect competition
• Competition from non-financial institutions is
  compressing interest margins
• Capital markets disintermediation is eroding
  banks traditional role

• Operating conditions
• Thinning lending spreads
• Higher consumer expectations
• Increasing dependence on technology investments
• Progressive disappearance of trading gains

22
Conclusions

• increased quality of service
• more better products
• cost reduction efforts

Competitive environment

• further consolidation
• alliances
• euro adoption

Great challenges

• new activities (bankassurance)
• underbanked markets(consumer credit-asset
  management)
• expansion in Balkans

Good opportunities