Marfin Popular Bank’s presence spans 9 countries (the United Kingdom, Australia, Romania, Serbia, Estonia, Guernsey, Ukraine, Malta and Russia) in addition to the two home countries (Cyprus and Greece), with a total branch network of over 470 branches.

The global financial and economic crisis which started in 2008, continued to affect economic activity during 2009, with emerging markets in South East Europe being significantly impacted.

In this environment, the emphasis of Marfin Popular Bank’s international operations has been placed on the safeguarding of the quality of the subsidiaries’ lending portfolios, the rationalization and further integration of the subsidiaries and the enhancement of their policies and procedures, with the adoption of the Group’s standards. Particular emphasis, with continuous and ongoing support from Group Head Office, has been placed on the areas of Risk Management, Internal Audit, Credit Quality Control, Assets and Liability Management, Information Technology, Methods & Operations, Human Resources, and Recoveries.

Marfin Popular Bank remains committed to its strategy of becoming a leading financial group in the wider area of South East Europe. Through the enhancing of internal operations and controls, the Group’s subsidiaries are being shielded to cope with the continued turmoil and are strengthening their competitive positions in order to fully capture the business opportunities when the respective economies and market conditions improve.


United Kingdom

Marfin Laiki Bank UK
Marfin Popular Bank’s UK strategy is geared towards corporate and commercial banking as well as wealth management, factoring and treasury services with an extended customer reach beyond its traditional market of the Greek and Cypriot communities. Marfin Laiki Bank leverages on the Group’s expertise to maximise opportunities for synergies arising from Marfin Investment Group’s complementary product offering. The Bank operates a network of 4 branches in London and Birmingham.

Throughout 2009 Marfin Laiki Bank maintained its focus on the safeguarding of the high level of quality of its assets, and in particular of its loan portfolio, the improvement of its profitability and the further expansion of its deposit base. Despite the weak economic conditions, the chain reductions of the Sterling Pound base rate to a continued low of 0.5% and the strengthening of the Euro against the Sterling Pound, the Bank’s asset quality, liquidity and profitability have been maintained at high levels.


Australia

Laiki Bank (Australia) Ltd (“LBA”)
The Bank operates a network of 10 branches offering comprehensive banking services primarily to the Greek and Cypriot communities, as well as to the other ethnic and mainstream local communities around its branch network. Laiki Bank’s competitive advantage over other established banks operating in the country is its focus on niche community and relationship banking, in which it is well positioned to provide a high quality service, as well as very competitive products. As an Australian deposit taking institution (ADI), Laiki Bank is eligible for the Australian Government Deposit Guarantee Scheme.

Despite the intense competition prevailing in the Australian banking sector, the Bank managed to improve its profitability while maintaining one of the best loan-to-deposit ratios in the local market, a strong capital position and a very high quality lending portfolio.


Romania

Marfin Bank (Romania) S.A.
At the end of 2008, in light of the continued economic crisis and the prevailing limited visibility in the markets, a strategic decision was taken to suspend any further expansion of the Bank’s branch network, which was maintained at 27 branches, with focus directed towards the rationalization and optimization of the network.

During 2009, emphasis was placed on the preservation and further improvement of the quality of its existing loan portfolio. At the same time, the Group’s Romanian operations continued the implementation of projects for the upgrading of its systems, policies and procedures.

In view of the weak economic environment, the Bank proactively strengthened its capital base by a total of €20 million, through an issue of a €10 million subordinated loan from Marfin Egnatia Bank (March 2009) and a share capital increase of additional €10 million (July 2009).


Serbia

Marfin Bank A.D. Belgrade
In 2009 significant strategic initiatives were taken to counter the effects of the economic crisis and improve the Bank’s competitive position. Marfin Bank’s management team was strengthened and its capital base was increased by €15 million in order to support the careful expansion of the Bank’s operations. The Bank’s branch network currently consists of 28 branches and is being rationalised.


Estonia

Marfin Pank Eesti A.S.
Marfin Popular Bank is the majority stakeholder (52,8%) of Marfin Pank Eesti A.S. The Bank operates 4 branches and primarily focuses on servicing small and medium sized businesses. At the end of 2009, the bank in cooperation with financial portal Tarkinvestor.ee launched an on-line stock trading platform for its clients. In October 2009 the Bank’s capital adequancy was further enhanced through the partial conversion of existing Group funding into a subordinated loan of €4 million.


Channel Islands

Laiki Bank (Guernsey) Ltd
Guernsey is a well-known international financial centre. Through Laiki Bank (Guernsey) Ltd, the Group’s local subsidiary, clients are presented with an alternative destination for deposits.


Ukraine

OJSC Marine Transport Bank
Marfin Popular Bank’s Ukrainian subsidiary has its head office in Odessa, and operates a network of 72 branches and points of sale in various other major cities across the country, including Kiev.

Ukraine has been significantly affected by the global economic crisis since the last quarter of 2008. As a result and given the adverse economic conditions that prevailed in the country, 2009 has been a challenging year for Marine Transport Bank as well as for all other Banks operating in the country.

During the year, Marine Transport Bank focused on maintaining the quality of its loan portfolio and reorganising and further improving the internal systems and its procedures, through additional infrastructure investments. Despite the adverse economic conditions, the Bank managed to increase its customer deposit base taking advantage of its very good credit rating (among the top 5 Banks of the country).

In 2010, the Bank aims to emerge stronger from the economic recession, improve its competitive position and exploit the opportunities that will be presented upon recovery of the local economy.


Malta

Lombard Bank Malta plc
Lombard Bank Malta (“LBM”) is one of the main Maltese banks, offering a complete range of financial services. LBM is based in the capital Valletta and maintains a network of seven branches across the country. Despite the world economic crisis, the Bank performed exceptionally well by maintaining very strong profitability indicators while keeping its focus on the high quality of its loan portfolio. Lombard Bank Malta owns 64% of the local post office (Malta Post plc), which has 33 branches throughout Malta. Marfin Popular Bank is the largest shareholder of LBM with 44,9% of its share capital.


Russia

OOO Rossisysky Promishlenny Bank (Rosprombank)
Rosprombank was established in 1997, is headquartered in Moscow and has presence in various regions of the Russian Federation, via a network of 29 branches and points of sale. The bank focuses on providing a full range of banking products and services to large corporate and small-to-medium sized businesses (SME).

During 2009 the Russian economy, and consequently the local banking sector, were significantly adversely affected by the international economic crisis. In this environment the focus of Marfin Popular Bank’s Russian subsidiary, Rosprombank, has been on the safeguarding of its strong liquidity and capital adequacy as well as on the proactive management of its existing loan portfolio. Particular focus was also placed on the rationalisation of the Bank’s branch network and operations.


Moscow Representative Office

Moscow Representative Office has been established in 1997 in order to provide information support to the increasing number of companies operating in Russia and also to Cyprus and Greek businessmen interested in investing in Russia.