(Greece) – The National Bank of Greece has just published their quarter two results. In a statement, the Chief Executive Officer of the bank, Leonidas Fragkiadakis, offered a summary of how the bank performed in relation to the rest of the economy in Greece.
The following information was found in a press statement that was released by the bank:
“The second quarter of the year was marked by the completion of the first review of the economic program, the subsequent reinstatement of ECB’s waiver on Greek bonds, and the divestment of Finansbank to Qatar National Bank, as per our commitments to DG Comp.
The transaction generated liquidity of c €3.6 billion that was utilized towards the reduction of ELA funding and the full elimination of our Pillar exposure. As a result, the Bank retains by far the lowest ELA exposure among Greek banks, at just €5 billion, underscoring its comparative strength in terms of liquidity ahead of the domestic economic recovery.
Asset quality developments are encouraging. Notably, the Bank managed to reduce the stock of NPEs for the first time and by an impressive €1 billion on the back of favorable collection trends, curing and write-offs. Domestic 90 dpd coverage remains at a sector-high of 77% in Greece and 75% at the Group level.
Regarding PAT from continued operations, NBG breaks even in H1.16. The H1 2016 results underline the positive trends of our operational performance in the domestic business, with core pre-provision profitability reaching €478m. Profitability in our SE Europe operations continues to strengthen, contributing €53m of net profits to Group results in H1.16, double the level of H1.15.
The Group’s CET 1 ratio, including CoCos and the impact from the agreed sales of Astir palace and NBGI private equity, stands at 22.1%. Our capital position will be further enhanced as the Bank’s restructuring plan unfolds.”
Greece has been in a recession since before the first bailout, which took place in 2010. Banks are amongst the hardest hit in Greece because of their nonperforming loans. However, some banks, such as Piraeus Bank, have turned a profit in 2010.