The Annual General Meeting of ASPIS BANK's Shareholders was held today, April 17, 2007, and was attended by shareholders representing the 67.05% of voting rights.
During the presentation of the Group's financial results Mr. Constantine Karatzas, Chairman and Managing Director, underlined that during 2007 the Bank's management continued the implementation of its strategic plans. More specifically, the new, core banking state-of-the-art IT system became operational, banking procedures were altered and adjusted to meet the new requirements and the Bank's presence in the Greek banking sector was strengthened. As a result, total assets increased by 17%, deposits increased by 13% and loans net of provision increased by 19% while the credit quality of the loan portfolio remained good. He focused on the Bank's, timely capital raising, prior to the recent crisis on the international markets, which further enhanced its capital adequacy. As a result, the total capital adequacy ratio reached 16.2% at the end of 2007, ensuring the implementation of the Bank's future growth plans with no immediate need for further capital raising. He continued by explaining that, the Group's profitability (profit after tax and minority interests amounted to EUR 6.9 million against EUR 12.3 million in 2006) was mainly affected by the charge of extraordinary tax as well as from the adverse impact of the markets' turmoil on interest margins, due to the increase of the cost of deposits in combination with the lower yields of mortgage loans, which traditionally form a major part of the Bank's loan portfolio.
Referring to the targets set by the Bank's management for the this year, he underlined that the recent market instability has affected the whole banking system and the adverse consequences, with the increase of the cost of funding as the major one, so far, will escalate, creating uncertainty for the near future. Given this situation 2008 will be a difficult year for the Banking Sector in total, with the growth and profitability of Banks inevitably affected. The management of Aspis Bank, fully aware of this situation, has already initiated the necessary interventions to ensure that any consequences will be temporary. At first level, actions targeting at further developing profitable activities, such as consumer credit and SME financing, and diversifying income sources by expanding to the Balkan markets, starting from Bulgaria, are in process. Simultaneously, specific actions to cut down operating costs will be implemented without delay. He repeated that the Management aims that any impact on the Bank's bottom-line results as a consequence of the turmoil and the cost of the actions taken be temporary, so that from 2009 and on the Bank operate on a steadily growing profit base.
The General Meeting approved the increase of the number of members of the Board of Directors by two (2) additional members. Such positions were assumed by Mr. Georgios Dayantis, until today General Manager of ASPIS BANK, and Ms. Haruko Fukuda. Ms. Fukuda, has held positions as Managing Director for World Gold Council, Nikko Europe plc, James Capel & Co, Lazard, and is a BoD member of AB Volvo and Centaurus Capital Ltd.
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