The top most positions in the management of National Bank of Greece (ADR) (NYSE:NBG) have been refurbished recently. After the Chief Executive Officer and Chairman resigned from the designation, the largest lender of Greece (in terms of assets) announced the modifications being done to the management.
The new appointments
George Zanias, the former chairman is succeeded by Louka Katseli, who is a former Greece minister. Leonidas Fragiadakis, a banker by profession, is named as the new chief executive officer. He is succeeding Alexandros Tourkolias.
The Election-Board Change Trend Continues in Greece’s National Banks
It has often been observed that the changes to the board of National Bank of Greece are done after the elections. The recent alterations to the Bank’s management are succeeding the appointment of two-month old Syriza-led government. Meanwhile, another bank of the nation, Eurobank Ergasias (the asset-wise 4th largest bank) also announced changes in its board.
The financial position of National bank of Greece
The net loss of bank for three months till December 2014 stood at $1.2 billion or €1.11 billion. In comparison, the third quarter had witnessed the net profit worth €30 million. The entire previous year was profitable for the bank and it reported that its net profit totalled at €66 million. However, this was down from the year earlier, i.e., 2013, when it saw a profit of €809 million.
The funding of National Bank of Greece was dependent largely on European Central Bank in the recent past. This was due to continuous deposit outflows resulting because of the economic and political uncertainty of Greece.
The overall exposure of this Bank to European system touched €23 billion by Mid-March this year. Out of this, €13.3 billion of amount was extracted from emergency fund. Greece was facing the economic meltdown since six years and on recovery, the banks in the nation are still facing challenges of bringing back their balance sheets to normal.