Filenews 3 May 2022 -by TheanoThiopoulou
The interests of its shareholders, who have a dividend of about 10 years, the compression of profitability and the increase of the cost-to-income ratio, are being managed by the top management of Hellinikon and it is in this context that the business plan that has been brought to the attention of the Ministry of Labour and provides for a reduction of the staff by 300-350 people moves, with the process of redundancy, according to bank sources. Already yesterday, the guilds ETYK, SEK and PEO were informed by letters from the bank's management about the transformation of the banking organization and Hellinikon invites the guilds to consult in view of the implementation of the plan, which includes, among other things, the closure of branches, the automation of procedures and the digitization of the bank.
According to information from "F", the bank is expected to close about 10 branches by the end of the year, bringing the total to about 20 (10 have closed) and therefore the shrinking of the network means a reduction in staff. Bank sources have said the goal is for staff to be reduced by 50% by 2026 and limited to 1,300 people. Based on the annual financial report, the group at the end of 2021 employed 2,760 people and the bank 2,617 people. The big challenge, according to the bank's circles, is to deal with the growing cost-to-income ratio, at a time when interest income is constantly falling mainly due to low interest rates due to the ECB's monetary policy. In fact, as has been noted by the bank's circles, shareholders have a dividend of about 10 years to get and something should be done by rationalizing expenses and by extension a sustainable development of the banking organization.
This move did not catch the ETYK by surprise, as in the previous period there were relevant announcements about the intentions of the management of Hellenic Bank. This was preceded by statements by the bank's chief executive officer, Oliver Gatzke, about the challenges facing the bank and the banking system due to the pressure of profits in relation to the expense side. In the presentation of the 2021 annual results on April 21, he had said that the bank intends to proceed with 300 to 350 surpluses this year, due to the implementation of the bank's transformation plan, which aims to ensure that the bank remains competitive in the long term. The bank's management has ruled out the possibility that shareholders will accept ex gratia damages amounting to €200 thousand. as part of a voluntary exit plan, as has been done in the past like other banks. According to information, it is not excluded that if etyk insists on the ex gratia compensation of the employees up to €200 thousand, then the proposal on the part of the bank for salary reductions in the staff will be put on the table.
Based on the bank's financial results for 2021, the cost-to-income ratio reached 73% (67% in 2020), with staff expenses amounting to €133.7 million. and account for 51% of the group's total expenses. According to reports, Hellinikon's goal is to limit staff costs to around €90 million. until 2026, while at the same time there is pending the signing of the new collective agreement which will take into account the bank's income and expense ratio and the percentage of salary claims.
According to reports, the bank's management is expected to negotiate with the trade union side the freezing of the annual surcharges and a reduction of about 50% in the contribution of the employer side to the Provident Fund.
The ETYK has made it clear that it will not accept redundancies and in a circular issued last Thursday called on the Ministry of Labour to rise to the occasion and to proceed with the process of criminal lawsuits.
