When will Attica Bank become the AMK

By Leonidas Stergiou

The general meeting of the shareholders of Attica Bank is scheduled for the beginning of July, which, among other things, will be called to approve the share capital increase and to pass the majority of the shares to the private investor. Shareholders and management representing the private TMEDE-Ellington scheme, HFSF and EFKA, have reached an agreement in principle for a share capital increase of 426 million euros, an amount which can be moved higher, if required.

One of the factors that may affect the final amount is related to the completion of the DBRS rating of Attica Bank securitized loans, in order to confirm any new claims. The relevant exercise is expected to be completed soon, with the conclusion of the evaluation reaching the hands of the management of Attica Bank by mid-July.

After the approval of the AMK by the general meeting and the completion of the evaluation of the securitized loans, the management of Attica Bank will start the procedures for the capital increase, which, given the procedures (newsletters, approvals from competent authorities, etc.). ), is expected in the last two quarters of the year.

After the green light from the Board. of Attica Bank for the 5-year plan, the Bank proceeds with its implementation, focusing on three central pillars:

– Financing in the sectors that bring the highest return and involve the least risk.

– Reduction of operating costs and redefinition of the investment program, so that depreciation is distributed to the results of the year more efficiently.

Emphasis on digital transformation.

Already, Attica Bank has completed the voluntary retirement program, with the departure of more than 100 employees. It further reduced financing costs and boosted new lending by € 150 million, despite increased repayments generally seen in the Greek banking system. It created a flow of new financing in order to further increase its loan portfolio in 2022.

At the same time, the program of selling reclaimed properties was launched, in order to get rid of their management costs and to release funds, mitigating the risks of the assets (RWA index or risk weighted assets). Finally, the project was run to properly collect and send all the required data that has already been sent to the DBRS rating agency, in order to obtain a pre-rating for three of the four securitized portfolios.