By Leonidas Stergiou
With the results of 2021 that are expected to be announced by the end of March, the management of Piraeus Bank plans the presentation of the new business plan, as Sunrise has already been completed by more than 90%.
The remaining 10% is already underway with developments in the coming weeks. The preferred investor for the sale of shipping loans (EUR 400 million) has been selected (DK) and the process is expected to be completed in the coming weeks.
As for the Sunshine plan, which includes the sale of leasing contracts of 500 million euros, the offers have already been submitted and the emergence of the investor is expected in the near future.
The securitization of Sunrise 3 red loans amounting to 800 million euros is in progress, which will be completed within the second quarter. At the same time, the Bank will proceed with two synthetic securitizations of loans from which 200 million euros of funds will be released.
With these moves, Sunrise completes its non-performing exposure ratio to 13% from 45% in one year, with the new business plan predicting a further reduction in single digits by the end of the year. According to information, the new business plan, which will be announced to international analysts in April, will include actions, which will be summarized in the following key pillars:
– Further development of the Group, revenues and profitability.
– Improving the quality of funds and continuing the fundraising program to strengthen MREL like other banks (these funds are not supervisory and must be covered in the long run).
– Supporting the economy and business.
Utilization of the Recovery Fund.
– Investments in digitization, innovation and more efficient use of networks.
This includes further strengthening the application of the ESG criteria, both in financing and investment. At the same time, a special action package will concern the utilization of the staff, which after two voluntary exit programs, was reduced in 2021 to 8,900 employees from 10,000 in 2020.
Source: Capital
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