Profit of Na­tional Bank of Greece falls

The Pak Banker - - Company& -

ATHENS: Na­tional Bank of Greece SA, Greece's largest lender by as­sets, said its ninemonth net profit fell 74% on sharply higher pro­vi­sions for bad loans but oth­er­wise met mar­ket ex­pec­ta­tions.

"De­spite the ex­cep­tion­ally ad­verse eco­nomic cli­mate in Greece, the NBG Group con­tin­ued to gen­er­ate prof­its in what is prov­ing to be a very tough year, main­tain­ing strong liq­uid­ity and an en­hanced cap­i­tal base while also for­ti­fy­ing its bal­ance sheet with higher pro­vi­sions," Chief Ex­ec­u­tive Of­fi­cer Apos­to­los Tam­vakakis said in a state­ment.

For the nine months to Sept. 30, the bank said net profit fell to €259 mil­lion ($343.1 mil­lion) from €1.01 bil­lion in the same pe­riod a year ago. Pro­vi­sions for bad loans to­taled €991 mil­lion. The re­sults were in line with an­a­lysts' ex­pec­ta­tions of €257 mil­lion in nine-month net profit and €999 mil­lion in pro­vi­sions, ac­cord­ing to a poll con­ducted by Dow Jones Newswires.

Non­per­form­ing loans have been in­creas­ing in the Greek bank­ing sys­tem be­cause the econ­omy is ex­pected to con­tract by 4% of gross do­mes­tic prod­uct this year and un­em­ploy­ment is ris­ing. This con­trac­tion has been ag­gra­vated by aus­ter­ity mea­sures im­posed on the debt­laden Mediter­ranean coun­try by its len­ders, the In­ter­na­tional Mon­e­tary Fund and the Euro­pean Union.

How­ever, nine-month net in­ter­est in­come-the dif­fer­ence that the bank earns be­tween its loans and de­posits-rose 7% to €3.11 bil­lion, ex­actly match­ing mar­ket ex­pec­ta­tions.

Mar­ket leader NBG is the last of Greece's four main banks to re­port third-quar­ter re­sults and is seen as a bell­wether for the lo­cal bank­ing sec­tor. It re­cently com­pleted an €1.8 bil­lion cap­i­tal in­crease and plans to sell as much as a 20% stake in its Turk­ish sub­sidiary Fi­nans­bank AS.

Last week, Greece's No. 3 and No. 4 len­ders Pi­raeus Bank SA and Al­pha Bank SA also re­ported sharply lower re­sults on higher pro­vi­sions. -PB News

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