Top four banks had a good Q2, study notes

The second quarter of the year (April-June) was a good one for Greek banks, NBG securities says in a note following the announcement of the first-half results of the “big four” banks (Alpha, Eurobank, National and Piraeus).

The banks maintained their strong capitalization and liquidity, with the latter being investment in higher-yield assets. NBG Securities notes the expansion of the banks’ lending portfolio, with total disbursements topping €8 billion. But financing costs also rose, due to higher requirements for own funds and eligible liabilities issued by regulators.

Revenue from fees increased too, but transaction fees declined significantly. NBG Securities notes that these trends were facilitated by the lower cost of debt write-offs that resulted from healthier loan portfolios. Nonperforming exposures (NPEs) were reduced in every bank.