NBG » Topics » Effective integration of new acquisitions and the leverage of synergies

This excerpt taken from the NBG 20-F filed May 27, 2008.

Effective integration of new acquisitions and the leverage of synergies

        The recent acquisitions, particularly Finansbank, have created a new structure for the Group, with a wide diversity of revenue and profitability sources that derive in large part from operations outside Greece. In 2007, more than 60% of the Group's branches were located in SEE and Turkey, while approximately 39.4% of net income and 37.2% of income before tax derived from the wider SEE region. According to the targets set out in the Business Plan 2007-2009, about 45% of our profitability in 2009 will be generated outside Greece. The leverage of significant synergies arising from the new Group structure will contribute to growth in this direction, as effective integration into the Group of the recently acquired banks is expected to generate substantial benefits, with the total impact of these synergies on income before tax anticipated to be in the region of €150 million at the end of 2009. The integration of Finansbank was completed ahead of schedule within 2007, achieving organizational and policy alignment in all core functions: Treasury, Finance, Risk, Audit and Compliance. Also, all planned joint business initiatives in Corporate, Investment and Retail Banking were launched and are delivering revenue synergies for the Group, including synergies in 2007 from cross-border lending provided to Turkish clients, while a new life insurance business was launched in Turkey leveraging Finansbank's network and NBG's expertise. The effective integration was confirmed with the appointment in early 2008 of Finansbank Group's CEO both to the NBG Group Executive Board and to oversee international activities. To achieve effective integration of the new members into the Group, it is imperative that a single control and management system is effectively implemented. To this end, substantial work has already been done by means of special projects for the integration of financial reporting, performance management, risk management, corporate governance and regulatory compliance.

This excerpt taken from the NBG 20-F filed Jul 2, 2007.

Effective integration of new acquisitions and the leverage of synergies

The recent acquisitions—particularly Finansbank—have created a new structure for the Group, with a wide diversity of revenue and profitability sources that derive in large part from operations outside Greece. In 2006, more than half of the Group’s branches were located in SEE, while approximately one-fifth of income and a quarter of profits derived from the wider SEE region. According to the targets set out in the Business Plan 2007-2009, about 45% of our profitability in 2009 will be generated outside Greece. The leverage of significant synergies arising from the new Group structure will contribute to growth in this direction, as effective integration into the Group of the recently acquired banks is expected to generate substantial benefits, with the total impact of these synergies on profits before tax anticipated to be in the region of 150 million at the end of 2009. To achieve effective integration of the new members into the Group, it is imperative that a single control and management system is effectively implemented. To this end, substantial work has already been done by means of special projects for the integration of financial reporting, performance management, risk management, corporate governance and regulatory compliance.

EXCERPTS ON THIS PAGE:

20-F
May 27, 2008
20-F
Jul 2, 2007
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