National Bank completes sale of Finansbank to Qatar

The transfer includes National Bank’s equity participation in Finans Finansal Kiralama AS (29.87 pct), in FinansYabrim Menkul Degerler SA (0.2 pct) and in FinansPortfoy Yonetimi AS (0.02 pct). Under the agreement, Qatar National Bank repaid a loan worth 910 million euros offered by National Bank to Finansbank, a move which boosted National Bank Group’s liquidity by around 3.6 billion euros.
Following completion of the transaction, National Bank’s pro forma CET1 index grew by around 740 bp in the first quarter to 21.8 pct. This capital boost will pave the way for the repayment of a 2.0-billion-euro CoCos issued by National Bank in December 2015.
National Bank, in an announcement, said that it will use this money to significantly reduce costs and noted that the sale of Finansbank underlined the bank’s devotion to successfully implement a restructuring programme.
Leonidas Fragiadakis, chief executive of National Bank, commenting on the transaction said the sale “reflected the determination of the bank to create value for its shareholders and to adhere to its commitments. National Bank is today the strongest bank in Greece on capital adequacy and liquidity terms.”