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Marfin Popular Bank PLC
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A Bank over 100 years old The Group is the result of a triple merger on 1/1/2007 between Cyprus Popular Bank (Laiki), Egnatia Bank, and Marfin Financial Group Complete banking and financial services Group with presence in 11 countries A network of 505 Branches and 9.000 staff MPB shares are listed on the Cyprus Stock Exchange and on Athens Stock Exchange
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Bank key figures 9M 2010
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Very strong capital base at €3,6b Very strong capital adequacy ratio at 11,8% Tier 1 ratio at 10,2% Total assets at €42,7b Strong deposit base with loan‐to‐deposit ratio at 105% NPLs at 7,1% Net profit at €82,7m Ratings: Baa2 (Moody’s), BBB (Fitch)
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Marfin Private Banking: Who we are Total CAL (Clients Assets & Liabilities) 2008 = €4,04 billion 2009 = €4,20 billion
Market Shares (estimated) Cyprus ~ 32% Greece ~ 16%
v Number of Clients (Master IDs) 2008 = 2.761 2009 = 3.283
q Investment Products Sales Volumes 2008 = €1,0 billion 2009 = €1,3 billion
) Operations in Cyprus: 2 Units in Nicosia & Limassol Greece: 7 Units in Athens, Crete & Salonica UK: 1 Unit in London Channel Islands: Guernsey
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PB‐CY Structure
Director WM‐CY Manager PB Nicosia
Manager PB Limassol
Manager Wealth Management Services
Head Operations
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Head Head Banking Services Custody Services
Delivering the Business Proposition
“Our effort is to offer our clients the opportunity to exploit for their own benefit the totality of our Group’s Resources, Expertise & Experience in an effective and efficient manner.”
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Client Centric Model
Entirety of Bank’s Expertise Investment Analysis Entirety of Bank’s Experience
RM Portfolio Counseling
Totality of Bank’s Resources
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CLIENT
Offering Marfin Private Banking Traditional Banking • Cash Management • Accounts in 30 currencies
Investment Services
Execution only Execution only
Advisory Advisory
Financing & WM Services Discretionary Discretionary
• Global Custody
• Investment Finance
• Plain Vanilla Lending • Escrow Agent Services
• Special Project Financing (Yacht, Aircraft, Real Estate, Other)
• Capital Markets
• Credit and debit cards
– Equity (incl ETFs)
• Bankassurance products
– Fixed Income – Foreign Exchange – Derivatives
• OPEN ARCHITECTURE (700 Funds)
• Financial & Succession Planning
• Mutual Funds Marfin AEDAK
• Wealth Structuring
• Structured Products • Market Outlook
• Alternative Investm.
• Asset Allocation
– Gold bars
• Investment Views
– Hedge Funds
• Tactical Ideas
– Private Equity
• Investment Themes • Portfolio Management 8
Group Resources Private Banking Client Private Banking Relationship Manager
Investment Strategy
Treasury
IBG
Specialists in asset allocation, portfolio construction and products selection
Providing expertise in money markets, fixed income, F/X & commodities
Providing expertise in equity markets, as well as other instruments (derivatives, ETFs) 9
Marfin AEDAK
Marfin Group
Specialists in Greek market funds and discretionary asset management
The rest of the Bank and the Group providing expertise in various other areas
Asset Allocation • Identify opportunities & risks in the macroeconomic environment and financial markets • Achieve the highest degree of diversification (correlation between asset classes) • Continuously analyze all macro and micro variables to determine the optimal allocation • Diversify not only between but also within asset classes • Identify tactical opportunities while maintaining focus on strategic allocation
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Model Portfolios • Risk Appetite: Conservative, Balanced, Aggressive • Extensive use of Optimization techniques to establish the best allocation of assets at any point in time • Stress Testing of model portfolios under different market scenarios • Regular Reviews • Tailor‐made portfolios according to our clients’ needs and requests
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Risk Management • Thorough statistical analysis of portfolios to manage risk and ensure client suitability • Fully compliant with MiFID regulatory framework
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Key Service: Advisory Mandate Prospective Client Advisory Contract
RM
Advisory Desk
Strategic and Tactical Asset Allocation
Restructuring and Rebalancing Client Portfolios 13
Regularly and ad hoc published reports
Products • Broad selection of high quality products to populate portfolios • Products range from a selection of 700 mutual funds of the best asset managers worldwide (Open Architecture) to plain vanilla or more complex structured products issued by Marfin Popular Bank or other highly rated issuers Bonds & F/X Bonds & F/X Mutual Funds
Equities (incl. ETFs) & Derivatives
Products Structured products Structured products 14
Mutual Funds
Mutual Fund Selection • Seek for funds that display attributes reflecting high quality fund management skills (consistency, repeatability, risk management, long term management commitment) • Rigorous quantitative analysis to screen above average risk adjusted returns
Peer Group Creation
Quantitative Evaluation
Qualitative Evaluation Review Concluding proposals
• Strong emphasis to the qualitative examination of funds
Control
• Seek alternative investment funds very selectively
Focus List
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Investment Strategy Publications The thorough research conducted by the Investment Strategy Team leads to a series of useful and insightful publications for the Private Bankers and PB clients. – The Advisor: A weekly review of the markets that also includes recommendations
– BondWatch: bond list for each segmant of the fixed income spectrum
– ETFWatch: ETFs list covering all major areas of interest – Strategy Review: our monthly view on the economy, markets and asset allocation
– Investment Strategy: our quarterly view on the economy, markets and asset allocation
– Daily‐DataWatch, MacroWatch: our daily (numerical) market snapshot
– Daily‐FundWatch: the short list of funds recommended to our clients
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Custody Services •
We provide a wide range of Custody Services to our clients, for local and overseas markets
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For overseas markets, we use big, reputable and financially solid Global Custodian organisations, such as Clearstream Luxembourg and HSBC Bank
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All overseas client holdings are held under our Bank’s client accounts with our Global Custodians
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Clients’ assets are segregated and held separately from our Bank´s assets (off‐ balance sheet)
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We offer Global Custody Services for the local market to private and institutional third party clients, local and foreign
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We provide custody and administration services to investment funds
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Contact details WEALTH MANAGEMENT DIVISION MARFIN POPULAR BANK PUBLIC COMPANY LTD P.O. Box 22032 1598 Nicosia Cyprus E‐mail:
[email protected] Web site: www.marfinlaiki.com.cy NICOSIA Tel: + 357 22 81 2280 Fax: + 357 22 81 2116
LIMASSOL Tel: +357 25 854744 Fax: +357 25 854752
December 2010
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Disclaimer This document is provided to you for information and discussion only. It is not a solicitation or an offer to buy or sell any security or other financial instrument. Any information including facts, opinions or quotations, may be condensed or summarised and is expressed as of the date of writing. The price and value of investments mentioned and any income that might accrue could fall or rise or fluctuate. The price of shares and income from them may fall as well as rise and is not guaranteed. You may not get back the amount of your original investment. Please note that past performance is not a guide to future returns. We believe the information to be reliable but make no warranty as to its accuracy and completeness. If an investment is denominated in a currency other than your base currency, changes in the rate of exchange may have an adverse effect on value, price or income. Investments may have no public market or only a restricted secondary market. Where a secondary market exists, it is not possible to predict the price at which investments will trade in the market or whether such market will be liquid or illiquid. As such, for investments not listed or traded on any exchange, pricing information may be more difficult to obtain and the liquidity of the investments may be adversely affected. This document and any related recommendations or strategies may not be suitable for you; you should ensure that you fully understand the potential risks and rewards and independently determine that it is suitable for you given your objectives, experience, financial resources and any other relevant circumstances. You should consult with such advisor(s) as you consider necessary to assist you in making these determinations. Nothing in this document constitutes investment, legal, accounting or tax advice, or a representation that any investment or strategy is suitable or appropriate to your individual circumstances, or otherwise constitutes a personal recommendation to you. Marfin Popular Bank does not advise on the tax consequences of investments. This document is intended only for the person to whom it is issued by Marfin Popular Bank. It may not be reproduced either in whole, or in part, without our written permission. The distribution of this document and the offer and sale of the investment in certain jurisdictions may be forbidden or restricted by law or regulation.
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