Why National Bank of Greece (ADR) (NYSE:NBG)’s CEO Is Set To Step Down

The CEO and chairman of National Bank of Greece (ADR) (NYSE:NBG) are expected to step down. It is currently unclear who the new top officials of the largest lender in Greece would be, but speculations have been pointing to the possibility of an ex-minister taking one of the positions.

Read what this analyst has to say about NBG.

It often happens that presidential elections in Greece usher in board changes at National Bank of Greece (ADR) (NYSE:NBG). That is expected to happen now with the government of the left-leaning PM, Alexis Tsipras, in office. NBG’s CEO, Alexandros Tourkolias, disclosed that he was planning to leave office in the next few days. He also said that chairman of the bank, George Zannias, also plans to step down from his post.

Possible successors

Although it is unclear who will be appointed to the two positions once the current holders leave, there have been reports that Louka Katseli, an economist and ex-minister, might be tapped for one of the roles. There are also rumors that George Michelis, who once worked for Emporiki Bank and Eurobank, could be hired for another role. However, Tourkolias preferred not to comment on the possible names that might be brought to the board once he and Zannias leave.

The majority stake in National Bank of Greece (ADR) (NYSE:NBG) is held by HFSF, the Greece bank bailout fund. HFSF also holds the largest stake in other two top banks in the country.

Hard-line regime

Since the administration of Tsipras came to office, there have been concerns about how Greece would handle its dealings with the international community. However, reports that Greece would proceed with the privatization of its main port, Piraeus, signaled that the administration of Tsipras is willing to soften its hardline position on economic matters.

The reversal of the leftie government on the Piraeus port issue also raises hope that Greece would be willing to engage the international community to help resolve its economic woes, especially debt obligations.

Analyst reactions

Analysts at Barclays and Wood & Company backed their “Buy” and “Equal weight” ratings on the stock of National Bank of Greece (ADR) (NYSE:NBG), respectively. The moves by the analysts followed hopes that Greece would be able to reach debt compromise with the international creditors.

About the Author

John is a special projects and general assignment reporter, noted for breaking several exclusive stories.

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