English"Emporiki Bank of Greece" SA, the Greek division of French bank "Credit Agricole" SA, expects net losses of about 570 million Euros (838 million dollars) this year, and will try to secure a capital injection to finance its layoff schedule.
According to "Emporiki" officials, losses of the bank will increase in 2009 from 500 million Euros in 2008, to 570 million Euros in 2009.
The bank expects to trim its loss to 300-350 million Euros in 2010, and expects to become profitable in 2011.
"Emporiki" wants to obtain a capital injection of about 1 billion Euros.
Management of Emporiki announced that "the new plan of the Greece division is fully backed by the majority shareholder Credit Agricole". Management also mentioned it is taking steps to stabilize its divisions in the Balkans and Cyprus, which were badly hit by deteriorating conditions in South-Eastern Europe. These regions account for approximately 5% of the bank"s results.
"Emporiki" had net losses of 190 million Euros in the second quarter, whereas the international division of "Credit Agricole" - posted losses of 50 million Euros.
In May, the bank"s shareholders approved a 850 million euro rights issue to boost capital and liquidity. One month later, the bank announced it would eliminate 1,500 jobs, due to closing several branches. The bank will also relocate several of its premises and cut its overall and administrative costs by 21%.
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