ECONOMY

MPB sells Australian branch

Marfin Popular Bank (MPB) has agreed to sell 85 percent of its Australian subsidiary to Bank of Beirut for 104.3 million euros as part of plans to concentrate its resources in Southeastern Europe.

MPB said the sale of its subsidiary, Laiki Bank Australia, will earn it a profit of 52.7 million euros for 2011 and will boost the group?s capital adequacy and Tier 1 ratio by about 27 basis points.

?MPB has also agreed to a strategic cooperation with Bank of Beirut, regarding operations in Australia, Cyprus and Lebanon,? the Cypriot-based lender said in a statement on Friday.

Laiki Bank has been operating in Australia since 2001. It has a 10-branch network and total assets of 680 million euros.