as at December 31, 2003 - EFG Bank Group

Report of the Board of Directors (continued)
market share in mortgages, which rose by 34%,
and in corporate lending, with loans to medium
and large-size corporations increasing by 11%. In
the shipping lending sector, where the Bank has
built up a considerable reputation over the years,
total loans grew by 17%. Credit cards also
generated good results.
Total customers’ assets, including deposits,
mutual funds and other investment products,
increased by 10%. In Greece, the Bank remained
the leader in asset management, notably in the
area of non-money market mutual funds where
total assets under management rose by more than
60%.
The Group also maintained the leading position
in Greece in private equity placements, IPOs and
securities brokerage and mutual fund
management.
As a result of this significant growth in activities,
the Bank and its subsidiaries increased net
interest income by 17% to EUR 849 million and
net commission and fee income by 24% to EUR
310 million.
At the operational level, the Bank completed its
reorganisation programme and continued to
invest in technologies. It carried on the
implementation of a value-based management
system, designed to quantify value creation at
global and detailed levels of the organisation and
provide a basis for resource and capital allocation
enhancement. Despite business expansion, cost
discipline allowed the Greek operations to
contain their operating expenses to a 4%
increase, which permitted a reduction in its Costto-Income
ratio to 53%. On a consolidated basis,
operating expenses amounted to EUR 664
million.
The Bank’s A- long-term and F2 short-term
ratings, with stable outlook, were reaffirmed by
Fitch. The Bank’s financial strength was rated C+
by Moody’s, the best such rating among Greek
banks, and its deposits A2/P-1.
For the second consecutive year, the Bank was
named as “The Best Bank in Greece” by the
internationally renowned US magazine Global
Annual Report 2003
Finance. It also received other professional
awards in the areas of consumer lending and ebanking
in Greece.
Outside Greece, EFG Eurobank Ergasias SA
strengthened its presence in retail banking in the
South East of Europe. It raised its shareholding in
Banc Post SA, Bucharest, to 53%, in Bulgarian
Post Bank AD, Sofia, to 92% and in Postbanka
AD, Belgrade, which was renamed EFG
Eurobank AD Beograd, to 92%.
On a consolidated basis, EFG Eurobank Ergasias
SA increased its Return-On-Equity ratio to 15%.
As at December 31, 2003, the Bank’s market
capitalisation amounted to EUR 4.8 billion.
Spiro J Latsis
Chairman of the Board
Group
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