Piraeus Bank keeps an eye on Russia
Piraeus Bank, Greece’s fourth-largest lender, is looking into expanding into Russia through the acquisition of a small peer but has yet to reach any final agreements, it said yesterday. Piraeus Bank was responding to press reports saying it is in advanced talks to acquire Russia’s Kedr Bank. The Greek lender said it is interested in acquiring a Russian bank for less than 100 million euros and that it is «exploring certain cases in Russia involving small banks with efficient management that are focused on business lending with solid profitability and a strong deposit base.» «If and when a final deal is reached… the bank will issue a relevant announcement,» it added. Greek banks have been expanding into high-growth markets in a bid to offset a slowdown in credit growth and rising competition in the domestic market. However, recent financial market turmoil and a slowdown in global economic growth have raised concerns about the risks attached to expanding in the developing markets mainly in Southeast Europe. In June, Bank of Cyprus signed a deal to buy an 80 percent stake in Russia’s Uniastrum Bank for 371 million euros, the country’s ninth-largest lender, broadening its international presence.
