Greece’s Piraeus Bank sees no impact on finances from central bank audit

Greece’s Piraeus Bank said on Wednesday it did not expect any material impact on its finances after its shares plunged on a media report that a central bank audit found regulatory violations by some employees.

The bank’s shares fell more than 20 percent to close at 2.70 euros ($3.24), after the Daily Ethnos newspaper reported on Tuesday that a central bank audit found violations by a number of bankers employed by Piraeus Bank from 2014 until last year.

“The bank clarifies that it does not expect any substantive impact on its financial and capital situation as a result of the Bank of Greece supervisory audit in relation with older compliance issues and internal procedures,” the bank said in a statement.

Beta Securities trader Takis Zamanis said a reason for the drop was “media reports related to employees of the bank.”

Piraeus Bank, responding to a query by the securities watchdog following the newspaper article, had said on Tuesday it would cooperate fully with the authorities on the audit.

A source familiar with the matter said the Greek central bank had sent a Supreme Court prosecutor details of findings regarding violations by some employees of Piraeus Bank, Greece’s largest lender by assets.

A court official said a Supreme Court prosecutor had received the findings.
Source: Reuters (Reporting by George Georgiopoulos; Editing by Adrian Croft and Edmund Blair)

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