Pi­raeus Bank net profit falls by 96pc in Q2

The Pak Banker - - Company+Boss News -

ATHENS: Pi­raeus Bank SA (TPEIR.AT), Greece's fourth-largest lender by as­sets, said Thurs­day that sec­ondquar­ter net profit tum­bled 96%, hit by an ex­tra­or­di­nary tax and ris­ing pro­vi­sions for non per­form­ing loans.

But this was still bet­ter than ex­pec­ta­tions of a loss for the sec­ond quar­ter in a poll con­ducted by Dow Jones Newswires.

"In the sec­ond quar­ter, Pi­raeus Group ef­fec­tively man­aged the volatil­ity of the eco­nomic en­vi­ron­ment and suc­ceeded in im­prov­ing its or­ganic prof­itabil­ity. For the sec­ond se­mes­ter of 2010 and ac­cord­ing to cur­rent in­di­ca­tions, the group's per­for­mance is ex­pected to be re­silient," Chair­man and Chief Ex­ec­u­tive Of­fi­cer Michalis Sal­las said.

For the three months to June 30, the bank said net profit to­taled EUR3 mil­lion, af­ter a net profit in the pre­vi­ous year of EUR77 mil­lion. Pi­raeus booked a EUR28 mil­lion tax im­posed by the cash-strapped Greek state on profitable com­pa­nies.

The re­sults were also weighed down by in­creas­ing pro­vi­sions for bad loans that came in at EUR135 mil­lion from EUR126 mil­lion for the sec­ond quar­ter of 2009.

Pro­vi­sions for non­per­form­ing loans are in­creas­ing for the whole Greek bank­ing sys­tem in the re­ces­sion­ary en­vi­ron­ment, and gross do­mes­tic prod­uct is ex­pected to con­tract by 4% this year. An­a­lysts had fore­cast a sec­ond-quar­ter net loss of EUR20.6 mil­lion and pro­vi­sions of about EUR140.6 mil­lion.

Net in­ter­est in­come--the dif­fer­ence that the bank earns be­tween its loans and de­posits-rose 10% to EUR298 mil­lion from EUR273 mil­lion a year ear­lier, near mar­ket ex­pec­ta­tions of EUR289.3 mil­lion.

Sec­ond-quar­ter NII ben­e­fited from loan re-pric­ing and in­vest­ment in high-yield­ing Greek bonds that off­set higher fund­ing costs. -PB News

KARACHI: Fed­eral Min­is­ter for In­te­rior Se­na­tor A Rehman Ma­lik chair­ing a high level meet­ing on Law & Or­der at Na­tional Cri­sis Man­age­ment Cell. -On­line

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