Artan P쳮aska
apernaska@tiranatimes.com
(Continued from the previous issues)
Only six per cent of the banking sector is controlled by Albanian shareholders. The local press reports that the remaining 92 % are controlled by foreign shareholders against the 88 % that were recorded in 2007 (Shqip, 7.04.2009). In monetary value, the foreign shareholders are estimated to hold collectively 500 million US dollars (USD) against 45 million US dollars (USD) held by the Albanian shareholders. From the sixteen banks operating in Albania only three are reported to be conjointly directed.
Reports from the Greek Emporiki Bank estimate that in addition to Greek Banks, which control approximately 40% of the Albanian market, the largest Bank is Austrian (20%), and there is a significant presence of Turkish (9%) German (5%), French (4%) and Italian Banks; a total of approximately 40% for the latter countries.
EMPORIKI BANK – ALBANIA S.A
Emporiki Bank – Albania S.A. is a local subsidiary of the Emporiki Bank Group. The group offers services in Greece through its network of 372 branches, and abroad through its branch in London and its subsidiaries in Albania, Bulgaria, Cyprus, Germany and Romania.
The first subsidiary was established in Bulgaria in 1994. Another branch was established in Romania in 1996 and yet another was established in 1998 in Albania.
The Albanian local subsidiary is owned 100 % by Emporiki Bank S.A. During the third quarter of 2008 the share capital of Emporiki Bank – Albania S.A. was increased by 11.5 million Euros fetching 14,161 new shares. Emporiki Bank covered this increase by 100 %. On 31.12.2008, Emporiki Bank S.A. reported controlling 100 % participation.
Reports from the bank considered Albania and the Balkans as emerging markets and put stress on the future development of the local networks.
Emporiki Bank was established in 1907, has been listed on the ATHEX since 1909 and claims to be one of the largest commercial Greek banks. In June 2000, Emporiki Bank entered into a strategic alliance agreement with the Crꥩt Agricole International Banking Group, which initially acquired 6.7% of Emporiki’s share capital. Following the public offer made by the French Crꥩt Agricole in June 2006 for the acquisition of 100% of the shares held by Emporiki Bank, the French bank is reported to actually hold around 72% of Emporiki’s share capital, with the remainder being held by approximately 46,000 shareholders.
2008 Annual Reports
In the 2008 annual report most of the intragroup transactions are reported for the former year. The bank states that the report is not audited by certified accountants or auditors. It reads: “Revenues of Emporiki Bank SA from transactions with foreign affiliated companies: Emporiki Bank – Albania S.A.: Services 20,000 Euros, Interest expense for deposits in the Interbank market 4,661,000 Euros.” (This data shows the Albanian subsidiary comes in just behind Emporiki Bank – Cyprus L.T.D. leading in the “Interest expense for deposits in the Interbank market” column, with 4,738,000 Euros, but at levels comparable to E. B. – Bulgaria).
In Emporiki Bank’s expenses from transactions with foreign affiliated companies: Emporiki Bank – Albania S.A.: Interest income from deposits in the Interbank market 43,000 Euros (These data figures show the Albanian subsidiary to look far behind Emporiki Bank – Cyprus L.T.D., leading in the” Interest income for deposits in the Interbank market” column with 4,375,000 Euros, but at levels comparable to E. B. – Bulgaria).
The report further reads:
Emporiki Bank’s claims concerning transactions with foreign affiliated companies: Emporiki Bank – Albania S.A.: (Short-term credit limits in the Interbank market: Interbank Market credit limits: 200,000,000 Euros / Usage of limits on 31.12.2008: 93,127,000 Euros): Long term borrowing 7,000,000 Euros.
Emporiki Bank’s liabilities from transactions with foreign affiliated companies: Emporiki Bank – Albania S.A.: Deposits 17,000 Euros: Interbank market deposits with the parent company (placements) 2,807,000 Euros.
To be continued Š(In the following issues of Tirana Times you will read further insights on each of the second-level banks operating in Albania).
