26.12.2024

Annual interview with Mr. Nikoletopoulos, "Ekonomija i Biznis" magazine

The future will involve balancing technology with the personal touch that builds trust and loyalty

1. This year, Stopanska banka AD Skopje celebrates its eightieth anniversary. What does this jubilee mean to you, how do you evaluate the bank's decades-long role? How does it feel to be at the head of such a bank?

The 80th anniversary is a moment of immense pride for all of us at Stopanska banka. It is not just a celebration of longevity but a testament to resilience, adaptability, and an unwavering commitment to our customers and the economy of North Macedonia. Over these decades, Stopanska banka has played a fundamental role in shaping the financial landscape of the country.
Being at the helm of the institution for 10 years now, especially during this milestone is both an honor and a responsibility. It reminds me of the legacy we inherit and the future we must shape, ensuring the bank continues to thrive for generations to come.

2. How do you evaluate the current position and performance of Stopanska banka AD Skopje on the banking market?

Stopanska banka consistently has been a leader in the domestic banking market, known for its stability, innovation, and customer trust. We have maintained strong financial performance, largest but diverse loan portfolio, and a solid market share. This leadership is not just about size but also about the impact we have in driving economic growth, supporting businesses, and empowering individuals to achieve their aspirations.
We expect to close the year with another stellar result, with app. 20% higher profits compared to the already very successful previous year. Stopanska Banka is not only a highly profitable bank but also the strongest bank in the country in terms of own capital as well as remaining self-funded by domestic deposits, enjoying the full trust of the depositors. Specifically, in 2024 we have improved the quality of assets (with NPE ratio recording the lowest ever ratio) the liquidity ratios as well as the capital adequacy ratio, standing currently above 18%.

3. Since the interest rates’ drop has already started and is expected to continue the next years, how this trend will affect Stopanska Banka and especially its profitability, currently being at very high levels? What is the bank’s plan to address this issue and the future challenges?

Indeed, the decline in interest rates has begun and is expected to continue in the coming years, which will affect the profitability of all banks. However, due to the structure of our balance sheet and the mix/diversification of the loan portfolio it is estimated that the impact on our bank will be less important. In addition, the ambitious plan for expansion and significant growth of our loan portfolio will compensate for the reduced income from the drop in interest rates and the bank will remain at the existing and even higher levels of profitability in the next years.
In this direction, namely, to support our growth and defending our profitability, we have already started an important transformation program of the bank. This program includes significant investments in infrastructure (new systems and innovative technologies, new building, products, people etc.) and changes in our operating model that will help us to improve significantly customer experience and operational efficiency in a sustainable way. In short, it will support us in achieving the very ambitious goals of our business plan and will also ensure the bank's competitiveness in the coming years decades.

4. What is the success and competitiveness of the bank due to?

If I had to pin-point where our success stems from I would say:
1. Our customer-centric approach: We focus on understanding and adapting to the needs of our clients and build on this knowledge to tailor our offering and develop new products, services and opportunities. We also greatly leverage the experience our majority shareholder NBG Group has in this field and their understanding of global and EU trends.
2. Trust, stability and reliability: Consistent financial results have provided Stopanska with security, growth and sustainability the decades of reliable service have built a stellar reputation across the country. This of course gives us the advantage, but it is also a statement for the current and future SB employees to carry on building the strong Stopanska banka brand forward and upward.
3. Prudent Risk Policies: We have dominant display in the field of risk management, proving over the years, especially considering the global turmoil in the past 5 years, that we understand the market and our clients and have mitigating actions ready to maintain low NPL and provisions, thus sustaining the profitability and the growth potential.
4. Exceptional talent: Our dedicated team drives the bank's vision forward, ensuring we stay competitive in the dynamic local and regional market.

5. The world economy is going through dramatic technological changes, for several years we have been talking about the fourth industrial revolution, and more recently about artificial intelligence and digital transformation. How do you see these processes, how will they affect the banking business in general?

The fourth industrial revolution is reshaping every aspect of our lives, and banking is no exception. Artificial intelligence and the perpetual digital transformation are challenging everything however they are also creating new opportunities to improve efficiency, enhance customer experiences, and provide innovative financial solutions. These advancements demand agility and a proactive approach to managing risks, especially cybersecurity. For banks, the future will involve balancing technology with the personal touch that builds trust and loyalty.

6. How is the NBG group preparing for new technologies and the digital future?

As part of the National Bank of Greece group, we are fully aligned with its strategic vision for the digital future. NBG has been already transformed to a modern and technologically advanced bank with strong capital and liquidity, with serious plans for expansion that are not purely traditional, rather they are being executed through synergies of added value.
Through their successful transformation project that began back in 2018 NBG has been investing heavily in digital platforms, advanced analytics, and AI-driven solutions to enhance customer interaction and streamline operations. These efforts are designed not only to improve efficiency but to ensure that their services remain relevant and accessible in a rapidly changing world. We are thrilled to have the Group shared knowledge at our side for our own ongoing digital transformation.

7. What do those changes mean for Stopanska banka AD Skopje? What will change functionally and organizationally and how does that reflect on your customers?

Stopanska banka, building on its 80 years of legacy, is embarking now on a bold and significant shift toward a more agile and even deeper customer-focused operational model. The shift will of course be predominantly technology driven. We are therefore, reconsidering our processes to integrate advanced digital tools that enhance efficiency and decision-making. Organizationally, we are creating a culture of innovation, and creating new roles to meet the demands of the digital era. This transformation will ensure that we remain highly competitive while staying true to our mission of being a trusted partner to our customers.
For our customers, the transformation will translate into more personalized and seamless banking experience, with focus on digital channels and experiences. With the ever expanding digital tools, customers will have faster, more intuitive access to products and services, whether they’re applying for a loan, managing savings or even seeking financial advice. At the same time, we make room for maintaining the very impactful human connection, ensuring that our corporate and retail clients can rely on the expert guidance and support whenever they need it.

8. Speaking of the future, how do you see the future economic development of our country and the region?

The future of North Macedonia and the region holds great potential, and I am sad that this potential hasn’t been fully utilized over the past decades. The hindering elements (such as corruption, immense administration and inefficient judicial system) seem to linger on and significantly delay the country’s integration into global markets.
To ensure steady economic growth the country needs to focus more on digitalization (and reducing administration) and investment in key sectors such as infrastructure and energy. This will aid with attracting foreign investors. On the other hand, reforms are also needed in education, health, environment protection and improving overall quality of life as this is quoted as the main reason in the region behind the immense migration that weakens economies on multiple levels.
With steadfast reforms, fostering innovation and with strengthening regional cooperation I believe we can unlock new opportunities for trade and investment and see the country prosper.
I would like to comment on the expectations from the 500mil credit line that the Government negotiated. We welcome this additional influx of funds that local companies can utilize at lower interest rates in financing their investment cycles. With the proper distribution of the funds, they can help create new jobs and fresh potential for the market with an extended impact on the entire economy. We will play our role in the disbursement of the funds through counseling, evaluation while maintaining the required risk measures.

9. What can be done to deepen cooperation with the Greek economy?

Deepening cooperation with the Greek economy can be achieved by leveraging the strong ties between our countries. This includes promoting joint ventures, enhancing trade relations, and facilitating cross-border investments. Additionally, collaboration in areas like digital innovation, energy, and infrastructure can further strengthen economic bonds, driving mutual growth and development. Stopanska banka became part of the NBG group back in 2000 and has since been the link and gateway for cross – country collaborations. We continue to play this role even more now, as business relations have increased and the peoples and the countries feel closer than ever.

"Ekonomija i biznis" Magazine, December 2024