The management of National Bank of Greece told the lender’s annual general meeting on Thursday that it will place emphasis on the lender’s full transformation through changes to its operational model to meet the challenges of the time and the economy’s funding needs. However, the issue of the auxiliary account for employees (LEPETE) dominated the debate at the meeting while a demonstration was held outside the building by NBG workers.
Group chairman Costas Michailidis said the objective is to render NBG “the first choice in the local banking market” by reversing “consolidated views and obsolete practices.” New NBG chief executive Pavlos Mylonas referred to the lender’s restructuring plan that has been all but completed with the exception of the sale of Ethniki Insurance and the subsidiary in Cyprus.
LEPETE remains a problem though, as it is no longer sustainable, and Mylonas said NBG management is working toward finding a solution. However, that would require the cooperation of the country’s creditors and the European Central Bank’s Single Supervisory Mechanism.
The meeting approved the 1-to-10 reverse split of the NBG stock that will change the nominal value of each share from 0.30 euros to 3 euros.