Eurobank, NBG stay profitable, NPLs shrink
Eurobank and National Bank, Greece’s two largest lenders by market value, were profitable in the first half as they rid their balance sheets of yet more impaired loans.
Eurobank reported net earnings of 941 million euros from €190 million in the first half of 2021.
Profit was boosted by a gain from the sale of a majority stake in its merchant acquiring business to Cardlink.
The bank’s strong set of results led management to revise this year’s goals higher, including return-on-equity which should top a 10% initial target, said CEO Fokion Karavias.
Its ratio of nonperforming exposures fell to 5.9%. Peer National (NBG) reported lower net earnings compared to last year’s first half on the back of softer trading income.
NBG, 40% owned by the country’s HFSF bank rescue fund, reported net earnings from continued operations of €490 million from €645 million in the first half of 2021.
The group’s NPE ratio improved to 6.3% from 6.7% at end-March with CEO Pavlos Mylonas saying the quality of its balance sheet was nearing that of European peers, with no signs of pickup in new bad-loan formation due to high inflation.
On Friday NBG said it agreed to sell 95% of mezzanine and junior notes of a securitized €1 billion bad-loan portfolio to funds managed by Bracebridge Capital. [Reuters]
