Author Topic: EGFEY - Eurobank  (Read 142512 times)

gary17

  • Hero Member
  • *****
  • Posts: 1165
Re: EGFEY - Eurobank
« Reply #20 on: May 09, 2014, 11:51:34 AM »
There's no annual fees based on my discussion. Pick up the phone and call your broker.


Hielko

  • Hero Member
  • *****
  • Posts: 1104
Re: EGFEY - Eurobank
« Reply #21 on: May 09, 2014, 11:56:35 AM »
Are you very sure about that? Who is the depository? Have you talked to them?

gary17

  • Hero Member
  • *****
  • Posts: 1165
Re: EGFEY - Eurobank
« Reply #22 on: May 09, 2014, 12:04:34 PM »
I believe bny mellon
I should call them but the info below indicates no custodian... this is OTC
https://www.adr.com/DRDetails/Overview?cusip=26844B209

PJM

  • Jr. Member
  • **
  • Posts: 78
Re: EGFEY - Eurobank
« Reply #23 on: May 11, 2014, 07:47:32 PM »
I did bit more research on EuroBank over the weekend. I also did some comparative analysis with its peers, mainly NGB and Piraeus.

From financial perspective, Eurobank seems to be in the same shape as other banks. In fact NGB and Pireaus are performing better on many metrics. Especially NGB - it is the only bank with net positive income post provision in 2013, has a higher CASA ratio, better L/D ratio etc. It also has Finansbank in turkey which is performing very well (contributing more than 50% to PPI) on the back of strong Turkish economy. I think Pireaus bank is best capitalised and probably the only bank among the three to have 10% Basel III fully loaded ratio after redeeming the preference shares.

I think EuroBank is attractive for two reasons
1. It generates substantial non-interest income (>20%) with its strong positioning in insurance, asset management, private banking, equity brokerage etc. This fee income/assets is low at 0.35% as compared to pre-crisis level of 0.9%. As economy improves fee income should back to normalized level of approx 0.7%
2. It is trading below BV (0.8x BV) whereas other banks are trading marginally above BV.

However any investment in greek banks has to be based on the assumption that Greek economy continues to improve and NPL will continue to come down. If that assumption holds true, investors in either bank are poised for good returns.

gary17

  • Hero Member
  • *****
  • Posts: 1165
Re: EGFEY - Eurobank
« Reply #24 on: May 12, 2014, 04:58:37 AM »
Quote
There is currently not an annual fee on this name.
 
Many thanks
 
Mark
 
Mark Lewis
BNY Mellon Depositary Receipts
Tel: +44 207 163 7407
mark.lewis@bnymellon.com
The Bank of New York Mellon (International) Ltd. acts as arranger for the full range of securities services offered by The Bank of New York Mellon and its affiliates in EU countries other than the UK.

PJM

  • Jr. Member
  • **
  • Posts: 78
Re: EGFEY - Eurobank
« Reply #25 on: May 12, 2014, 05:01:49 AM »
Thanks for the confirmation. Without annual fees, it becomes more compelling to buy ADR

gary17

  • Hero Member
  • *****
  • Posts: 1165
Re: EGFEY - Eurobank
« Reply #26 on: May 12, 2014, 05:17:34 AM »
However any investment in greek banks has to be based on the assumption that Greek economy continues to improve and NPL will continue to come down. If that assumption holds true, investors in either bank are poised for good returns.
This is essentially the thesis here -- can over the next 5 to 10 years this Bank delivery earnings back to shareholders that's worth at least today's price.... so you are getting the future earnings for free :)

argonaut

  • Full Member
  • ***
  • Posts: 188
Re: EGFEY - Eurobank
« Reply #27 on: May 12, 2014, 07:39:17 AM »
Hi Gary,

How much do Premier and Wilbur each have in it and did they pick up a chunk of the new shares too?

gary17

  • Hero Member
  • *****
  • Posts: 1165
Re: EGFEY - Eurobank
« Reply #28 on: May 12, 2014, 08:04:30 AM »
i think they are almost half of the new shares issued
http://www.gurufocus.com/news/255692/prem-watsa-wilbur-ross-invest-almost-half-a-billion-in-greeces-eurobank
the thesis here is very simple:
- can prem & co repeat what they did at BKIR?
- can europe finally come out of its mess?
- can the bank be profitable again and is the current market valuation below what it would earn over the course of its expected lifetime? 
my own thinking is yes & given the ADR and the commons I went with the ADR for some additional margin of safety, albeit it's not that significant as others have suggested.

there's also alpha bank which David Einhorn has invested in as well that is worth looking at.  And of course NBG... 
Gary
« Last Edit: May 12, 2014, 08:08:04 AM by garychen17 »

argonaut

  • Full Member
  • ***
  • Posts: 188
Re: EGFEY - Eurobank
« Reply #29 on: May 12, 2014, 08:50:09 AM »
Very helpful! This sentence raised a yellow flag for me: "Loans 90 days past due at year-end 2013 rose to 29.4% from 22.8% in 2012."