NBG sees Q3 prof­its quadru­ple on last year

Kathimerini English - - Front Page -

Na­tional Bank of Greece yes­ter­day an­nounced healthy prof­its for the first three quarters of the year, en­hanc­ing its cap­i­tal po­si­tion and cash flows in the con­text of what is prov­ing to be a gen­eral re­bound in the lo­cal credit sec­tor, as the re­cent Euro­pean Cen­tral Bank stress tests also re­vealed.

Prof­its amounted to 1.17 bil­lion euros, more than four times the 262 mil­lion recorded dur­ing the same pe­riod in 2013. Earn­ings be­fore pro­vi­sions amounted to 1.24 bil­lion, ex­ceed­ing the amount of pro­vi­sions (1.07 bil­lion) and lead­ing to op­er­at­ing prof­its of 169 mil­lion euros.

NBG of­fi­cials noted that this was the eighth con­sec­u­tive quar­ter of op­er­at­ing prof­its, which re­flects the gen­eral im­prove­ment in fi­nan­cial con­di­tions and man­age­ment ac­tions to con­tain ex­pen­di­ture. Group op­er­at­ing ex­penses were re­duced by 11 per­cent on an an­nual ba­sis as the bank im­ple- mented sig­nif­i­cant spend­ing cuts across all ge­o­graphic sec­tors.

Bad loans

Re­gard­ing the qual­ity of the loan port­fo­lio, the rate of new bad loan cre­ation in Greece con­tin­ued to slow, drop­ping by 6 per­cent on a quar­terly ba­sis to 246 mil­lion euros, while the an­nual de­cline in the growth rate came to 38 per­cent. The cov­er­age level of bad loans re­mained high, as pro­vi­sions cov­ered 56.5 per­cent, while the bad loan in­dex amounted to 23.4 per­cent of all loans, vir­tu­ally the same as in the sec­ond quar­ter. In Greece alone the non­per­form­ing loans in­dex read 30.1 per­cent, against 29.3 per­cent in Q2.

The con­tri­bu­tion of NBG’s Turk­ish sub­sidiary, Fi­nans­bank, once again proved very pos­i­tive. With the eco­nomic cli­mate in the neigh­bor­ing coun­try im­prov­ing, Na­tional stated that Fi­nans­bank’s net third-quar­ter profit amounted to 109 mil­lion euros, grow­ing by 27 per­cent from the pre­vi­ous quar­ter.

Among other blue chips to re­lease their Q3 re­sults, OTE tele­com yes­ter­day promised share­hold­ers a div­i­dend for the 2014 fi­nan­cial year, for the first time since 2008. Group rev­enues de­clined 9.5 per­cent in the first nine months of the year to 2.9 bil­lion euros, while net prof­its after taxes and majority rights dropped by about 60 per­cent to 194 mil­lion euros.

Coca-Cola HBC re­ported a sig­nif­i­cant 5.6 per­cent de­crease in net rev­enues in the first nine months, which came to 5 bil­lion euros against 5.29 bil­lion a year ear­lier. The listed firm at­trib­uted the de­cline to the rel­a­tively cool and wet Greek sum­mer and the de­cline in Rus­sian con­sump­tion.

The CCHBC group has also sold its 50 per­cent stake in Bul­gar­ian beer company Zagorka AD to Heineken – holder of the other 50 per­cent – for 76.5 mil­lion euros, reap­ing cap­i­tal gains of 58.8 mil­lion.

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