Emporiki announces cost-cutting measures

by Richard Kilner

Story link: Emporiki announces cost-cutting measures

Greek bank Emporiki Bank Group has arranged a number of measures designed to enhance the firm’s productivity and shape its business to better suit the present economic circumstances.

The measures will take effect from this year until 2011 and are targeted to reduce costs, improve margins, decrease exposure to risk and put Emporiki on a strong footing for longterm success.

Greece has been particularly hard hit by the financial and economic crisis, making the bank’s actions imperative.

One of the measures being taken is a drive to cut G&A costs by 21% by 2011, partially by centralisation of functions to enable economies of scale to be taken advantage of as well as aiming for more favourable commercial terms with suppliers.

The branch network will also be changed, with 57 branches of low profit areas closed, and 33 relocated to areas with potential for growth and profitability.

New branches will also be opened, in areas such as Attica and Thessaloniki with potential for high growth.

Over a three year period staff numbers will be reduced by 1,500, on a voluntary basis.

Alain Strub, chief executive, has said that by utilising the measures announced the firm intends to return to profitability by 2011.

In the first quarter of this year the bank made a post-tax loss of €169m.