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CPB plans in Greece

17/01/2013 13:05
Cyprus Popular Bank announced today its plans in the Greek market, including the withdrawal of 400 employees on the basis of its voluntary retirement plan.

According to the bank, it aims to a smaller network branch, reduction in operational costs and restructuring in operations.

According to the announcement, this strategy aims not just to adapt to the difficult environment, but also to improve the competitiveness of the bank’s services, focusing on service and support to the customers.

Marfin Egnatia Bank, a member of Laiki Group, has already achieved significant reductions in operating costs, while by rationalizing the branch network in Greece, has reduced the network via mergers by 42 branches, from 174 to 132, and by 13 banking centers from 23 to 10, always ensuring the smooth operation and the customer service.

As mentioned, these moves resulted in a significant reduction in operating costs of the buildings by 15% in 2012, while a further reduction of these costs by 20% is anticipated in 2013.

In 2012, the number of employees decreased by 133 persons, and there have been reductions in salaries and other benefits of the staff bringing down the corresponding costs by 16% on an annualized basis.

Additionally, in December 2012, the bank launched the voluntary retirement scheme aimed at staff in Greece, according to which more than 400 people until January 31, 2013 are expected to withdraw.

The savings from the implementation of the voluntary retirement scheme are estimated at 12% of the cost of the annual payroll in Greece.

The increase in deposits by €941 million from June 2012 is exceptionally important, increasing its share in deposits from 3.78% at the end of the first half of 2012 to 4.02% on 30/11/2012, despite the fewer branches. At the same time, the bank proceeded with a disinvestment of assets by €793 million.

As stressed, the actions fall under the broader the Restructuring Plan, to the implementation of which Cyprus Popular Bank remains firmly committed.