Following the failure of the proposed merger between the Bank of Chania and the Pancretan Bank at the end of last year, the Bank of Chania has been making its own plans for development, which were revealed at a General Assembly at the Bank’s headquarters in Chania on Sunday 9th July. In addition to an increase in capital of up to €7.5 million in new cooperative shares and the issue of subordinated bonds to the value of €15 million, the partners decided by a large majority to approve the initiation of the process to convert the organisation into a limited company.
Commenting on the move, the chairman of the Bank’s management board Michalis Markakis stated: “Today’s decision by the General Assembly of the Cooperative Bank of Chania, which was passed by an overwhelming majority, is a turning point. … This development opens the way for the bank to assume a leading role not only in Crete but at a national level. This is a modern credit institution which will continue to support mainly SMEs and will contribute significantly to the prosperity and development of society and the economy.”
Michalis Markakis, chairman of the board of the Cooperative Bank of Chania, which is to become a limited company.
Commenting on the bank’s recent performance, Mr Markakis said: “2022 was a profitable year and I can say that it was the best year of the past decade.” The coronavirus pandemic, which came on the heels of a decade-long financial crisis, produced significant turbulence not only on a national but also on a global level. However, the Bank of Chania managed to cope with all the difficulties which it met on its path, continuing its course of development, he said.
In 2022, the Bank continued to invest in digital transition projects, Mr Markakis added. “In particular it completed the upgrading of the electronic file management and archiving system, while it is continually improving the electronic banking platform (e-banking, mobile banking etc), incorporating systems which offer the greatest possible security for users’ data. It is noteworthy that during the last three years the bank has received four awards for its digital infrastructure and services. Following an award for its e-banking and two awards for its mobile app, the Bank received the Golden Award in the Fraud Prevention category at the Cyber Security Awards 2023.”
According to the annual results, deposits at the Bank as at 31/12/22 showed a slight downturn compared with the previous financial year, standing at €599.3 million as against €609.2 million. However, it is worth noting that deposits at the bank within the last 5 years grew by around 84 per cent – far higher than the average for the Greek banking system. This can partly be attributed to the growth of the Greek economy, but chiefly reflects depositors’ confidence in the Cooperative Bank of Chania, Mr Markakis said.
Targets for 2023
The strategic targets which the bank has set for 2023 are as follows:
– Increase of internal capital and economic growth, targeting an increase in cooperative share value as well as the overall capital support of the group.
– Strengthening of the Bank’s position in relation to the competition, through the implementation of significant collaborations and synergies.
– Reduction in the number of non-performing loans, through effective management of the Bank’s portfolio and the wider improvement of its quality.
– Implementation of the necessary actions to convert the Bank into a limited company, which in the medium term will lead to its entry into an organised market.
– Management and exploitation of the Group’s properties in an effective and profitable manner.
– Further strengthening of the capital adequacy ratio, both on an individual and a consolidated basis.
– Maintenance and further reinforcement of a risk management framework, to shield the bank from external threats.
– Maintenance of the liquidity reserve and the relevant indicators at a high level.
– Introduction of new and flexible financial products and tools, which will meet the needs of customers.
– Pushing forward the Bank’s digital transformation, modernisation of the products and services provided, as well as the expansion of digital transactions, with the aim of providing exemplary services to customers at all levels.
– Increasing the Bank’s profitability through reduction of operating costs and optimisation of the net interest margin.
– Practical support of both households and businesses as well as the Bank’s entrepreneurial clients, with the aim of developing their activity and improving their competitiveness over a broad range of activities.
(Haniotika Nea, www.chaniabank.gr)
11/07/23