BUILDING THEIR STRATEGIES on prospects of a fast-growing economy, Greek banks are trying to take advantage of top-line growth to rationalize their cost structure. At the same time, expansion in southeastern Europe has taken priority over consolidation at home. Greek banks are walking a fine line. The realize the local market is too small to satisfy their growth ambitions, but are wary of the costs and risks of expansion.
Although each bank has its own vision, it seems as if most agree that an M&A deal, when it comes, should be judged by whether it enhances competitiveness as well as simply increasing size. As recently as a couple of years ago, increasing market share was the top priority.
Nickos Nanopoulos, chief executive officer at EFG Eurobank Ergasias, Greece's largest bank by market capitalization and third by total assets, says: "We have reached critical mass in terms of size, occupying one of the leading positions in all of the segments of the Greek banking industry. We are continuing to enlarge our presence and increase market share in several key segments, such as consumer lending, small business lending, asset management and stock brokerage services. Consequently, we feel no real pressure to make any further acquisitions at this moment."