Profile: National Bank of Greece SA (NBG.C)
30 May 2014
National Bank of Greece S.A. (NBG), incorporated on January 14, 1905, is a diversified financial services company. The Bank is engaged in commercial banking business. The Bank's segments include Retail Banking, Corporate and Investment Banking, Global Markets and Asset Management, Insurance, International Banking Operations and Other. The Bank offers its customers a range of integrated financial services, including corporate and investment banking; retail banking (including mortgage lending); leasing and factoring; stock brokerage, asset management and venture capital; insurance, and real estate and consulting services. In addition, it is involved in various other businesses, including hotel and property management. Banking activities in Greece include the Bank's domestic operations, Ethniki Leasing, Probank Leasing S.A. (Probank Leasing) and Ethniki Factors S.A. (Ethniki Factors). NBG has approximately 530 branches, a premium banking branch and over 1,440 automatic teller machines (ATMs).
The Bank operates a contact center, through which the Bank provides information and transaction services through the use of a voice portal and a manned help desk. It also operates an i-bank, a Web-based portal, which allows its clients to select the place and method to transact with the Bank. The Bank operate approximately four i-bank stores (over two in Athens and approximately two in Thessaloniki), which offer all i-bank services (Internet, mobile and phone banking and ATM) and where it also hosts entertainment and educational events. The Bank participates in DIAS Interbanking Systems S.A., which has approximately 30 banks as shareholders and direct members, including the Bank. DIAS Interbanking Systems S.A. provides interbank services, such as check clearing, ATM networking, fund transfers, and payroll and pension services. The Bank provides certain banking services over the Internet, including the transfer of funds between accounts, balance inquiries, bill payments, stock brokerage services and subscriptions to initial public offerings on the Athens Exchange (ATHEX). The Bank offers payment services to clients participating in all local interbank payment channels. Savings and investment products of the Bank are offered both in euro and in other currencies.
The Bank's Retail Banking segment includes all individual customers, professionals, small-medium and small sized companies in Greece. The Bank, through its network of branches, offers various types of loan, deposit and investment products, as well as a range of other traditional services and products, to its retail customers. The Retail Banking segment is organized into three sub-divisions: Household Lending (Mortgage and Consumer loans), Credit Cards and Small Business Lending (SBL). Its consumer loan portfolio includes auto financing, other, consumer and credit cards. The Bank's SBL Unit constitutes a division of retail banking and manages credit provision to small businesses. SBL Unit operates through approximately three business credit centers in the urban centers (Athens, Thessaloniki and Patras), which handle credit applications.
Corporate and Investment Banking
The Bank's Corporate and Investment Banking segment includes lending to all large and medium-sized companies, shipping finance and investment banking activities. The Bank offers its corporate customers a range of products and services, including financial and investment advisory services, deposit accounts, loans (denominated in both Euro and foreign currency), foreign exchange and trade service activities. It also offers insurance products, custody arrangements and trade finance services. The Bank lends primarily in the form of short term credit lines and medium/long term loans. Apart from financing, the Bank provides standby letters of credit and financial guarantees. The Bank's shipping finance activities are carried out through its Piraeus-based unit. The Bank provides bilateral and syndicated long-term financing, to dry bulk, wet bulk and liner business. Its project finance loan portfolio includes loans to large infrastructure projects both in Greece and abroad (primarily in Europe).
The Bank performs its leasing activities through its subsidiary, Ethniki Leasing S.A. (Ethniki Leasing). Ethniki Leasing leases land and buildings, machinery, transport equipment, furniture and appliances, computers and communications equipment. Probank Leasing S.A. (Probank Leasing) leases land and buildings, machinery, transport equipment, furniture and appliances, computers and communications equipment. It also offers factoring services and investment banking services. The Bank has established the Special Assets Unit (SAU), in order to manage troubled and past due corporate loans and have responsibility for managing such loans. The SAU proposes customized loan modification and troubled debt restructuring (TDR) solutions to enterprises that are facing difficulties meeting their obligations and have operational and financial weaknesses.
Global Markets and Asset Management
The Bank's Global Markets and Asset Management segment includes all treasury activities, private banking, asset management, custodian services and stock brokerage. The Bank's treasury activities include Greek and other sovereign securities trading; foreign exchange trading; interbank lending and borrowing in euro and other currency placements and deposits; forward rate agreement trading; repurchase agreements; corporate bonds, and derivative products, such as options and interest rate, and currency swaps. NBG Private Banking (Private Banking) is the Bank's arm that responds to the needs of high net worth and ultra-high net worth clients. The Bank operates out of approximately eight different locations in Greece and over two international Private Banking centers in London and Malta. The Bank offers custody services to domestic and foreign institutional clients, as well as to its retail customer base, covering the Greek and foreign markets. The range of services the Bank offers includes trade settlement, safekeeping of securities, corporate actions processing, income collection, proxy voting, tax reclamation, customized reporting, as well as underwriting and paying agent services.
The Bank's domestic fund management business is operated by NBG Asset Management S.A. NBG Asset Management S.A. offers approximately 20 investment funds under the brand name Delos, over two under the NBGAM brand name, one under the N.P. Insurance brand name and approximately three under the NBG International SICAV brand name, which are registered in Luxembourg. NBG Asset Management S.A. offers a range of investment products that provide to institutional and private investors access to various markets in stocks, bonds and money market products, in Greece and internationally. In addition, NBG Asset Management S.A. offers a range of investment services, such as portfolio management for institutional and private investors, and consultancy investment services for institutional and private investors. National Securities S.A. (NBG Securities) constitutes the brokerage and investment banking arm of the Bank.
International Banking Operations
The Bank's international banking activities include a range of traditional commercial banking services, such as commercial and retail credit, trade financing, foreign exchange and taking of deposits. In addition, the Bank offers shipping finance, investment banking and brokerage services through certain of its foreign branches and subsidiaries. It operates in over 10 countries outside Greece. Its international network consists of approximately 1,220 branches (including foreign subsidiaries and Bank branches in the United Kingdom, Egypt and Cyprus), which offer traditional banking services and financial products and services. The Bank has commercial banking subsidiaries in Turkey, Bulgaria, Romania, Former Yugoslav Republic of Macedonia (FYROM), Serbia, Albania, Malta, Cyprus and South Africa.
The Bank's international operations include the Bank's branches in Egypt and Cyprus, as well as banking subsidiaries in over eight countries. The Bank's non-Greek banking subsidiaries include United Bulgarian Bank AD-Sofia (UBB), Vojvodjanska Banka A.D. Novi Sad (Vojvodjanska), Banca Romaneasca S.A. (Banca Romaneasca), Stopanska Banka A.D.-Skopje (Stopanska Banka), the National Bank of Greece (Cyprus) Ltd. (NBG Cyprus), Banka NBG Albania Sh.a. (NBG Albania), South African Bank of Athens Ltd. (SABA) and NBG Bank (Malta) Ltd. (NBG Malta). UBB is a commercial bank, which provides retail and corporate finance services in Bulgaria. As of December 31, 2015, UBB's distribution network included 198 units, which include 124 Type 1 (retail business), 27 Type 2 (retail and micro business), 17 Type 3 (retail, micro, and small and medium-sized enterprises (SME) business), nine Type 4 (SME business) and 21 offices, and operated 696 ATMs and 9,097 point of sale (POS) terminals in Bulgaria.
Banca Romaneasca is a commercial bank providing a range of retail, SME and corporate banking services in Romania. Stopanska Banka is a commercial bank in FYROM, which provides a range of retail and corporate banking services. NBG Cyprus provides a range of commercial and retail banking services, focusing on corporate lending and international business. NBG Albania operates through a network of approximately 30 branches and provides a range of commercial and retail banking services. SABA has over seven business suites, primarily in urban centers, across South Africa. SABA offers traditional commercial and business banking services, as well as non-traditional sponsored or alliance banking services in the South African market. As part of its International operations, the Bank offers leasing services through certain of its foreign subsidiaries.
The Bank provides insurance services primarily to individuals and companies through its subsidiary Ethniki Insurance Group (EH). EH offers a range of products, including life, accident and health insurance for individuals and groups, fire, catastrophe, motor, marine hull and cargo insurance, and general third-party liability insurance. EH operates through a network of approximately 10 branches, over 150 sales bureaus, approximately 2,180 tied agents and over 1,440 independent insurance brokers, in addition to selling bancassurance products through the Bank's network and also by direct selling. The Bank offers the various bancassurance products through its insurance brokerage subsidiary, NBG Bancassurance S.A.
The Bank's Investment savings and retirement insurance products include single payment unit-linked investment insurance products and monthly premium traditional products. The health insurance provides a range of insurance coverage for medical services, which include diagnostic tests, hospital and surgical indemnity. Motor insurance (for Auto, Moto, Truck) is offered in predefined insurance packages (Classic, Extra and Premium), which include insurance coverage for third-party liability coverage for vehicle damages and body injuries, uninsured motorists coverage, theft coverage, fire coverage and collision coverage. Home insurance includes coverage against fire, earthquake, flood and other similar risks. Insurance products bundled with banking products include life insurance and payment protection insurance.
The Other segment includes real estate management, hotel and warehousing business, as well as unallocated income and expense of the Bank and intersegment eliminations. The Bank engages in real estate management activities, including warehousing and third-party property management. As of December 31, 2015, the Bank owned 1,735 real estate units, 1,163 of which were buildings and 449 were lands.
National Bank of Greece SA
ATHINA 102 32