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Friday, 08/29/2014 1:42:16 PM

Friday, August 29, 2014 1:42:16 PM

Post# of 19165

How analysts viewed the results of Alpha Bank and National - exaggerates the contribution of deferred taxation

29/08/2014 - 13:27 - Technical analysis - Reports

translated via google from Greek to Eng. (news source bankingnews.gr)


Appreciate what JP Morgan Cazanove, Euroxx, HSBC, Deutsche Bank
Positive analyzes are published after the announcement of the results of Alpha Bank and National, although most overemphasize the contribution of deferred taxation sizes. Cazanove JP Morgan: The three positive points results b 3months of Alpha Bank and National Member results of the two banks stood higher estimates due to the effect of deferred taxes, but identified a number of positive signs that the industry is recovering. mentions the current 7selidi analysis of the JP Morgan Cazanove entitled "Q2 results boosted by DTA gains- more buffer against upcoming stress tests "(the results b 3months amplified by the effect of deferred tax - more benefits for the upcoming stress test). According to JP Morgan positive results consist of the following: I) the formation of non-performing loans continued to decline (-31% for Alpha Bank and -20% for EIF), which is accompanied by the reduction in provisions and stabilizing the coverage ii) improving time deposits continued iii) the first signs of loan growth occurred More importantly, according to JP Morgan is that the recognition of Deferred taxation led to a further increase in capital adequacy ratios especially in view of the upcoming stress test. The JP Morgan expects further positive impact on the results of the measures taken to restructure sizes the management of risks and the management of problem loans. was also significant improvement in asset quality, suggesting that the upcoming measures for the restructuring of non-performing loans and bankruptcies should help in the recovery process of NPLs Finally, JP Morgan believes that the improved figures announced for the second 3 months will strengthen the position of both banks, with respect to the results of the stress test, which will be held both in static and in dynamic balance (ie based on restructuring plans) Euroxx: At 3.30 euro price target for National and 0.90 euros for Alpha - Recommendation overweight Setting up overweight, best odds for these market gives Euroxx in National and Alpha Bank, the analysis after the announcement of results, placing the target price to EUR 0.90 for the Alpha Bank and 3.30 million for the National. Regarding National, the Euroxx emphasizes improving net profitability due to deferred taxation amounting 894 million Euros, while improved is the net interest income (NII) by 1.2% compared to the previous quarter due mainly Finanbank. Moreover, he adds that the risk profile of the National is higher than other banks because of geopolitical risks involved in Turkey. Estimates of Euroxx net profit for the whole of 2014 will reach 333 million. euros. Regarding Alpha Bank, the NII increased by 2% to 480 million. euros reflecting the further reduction of interest rates on term deposits . For the whole of 2014 anameneta loss of 287 million. euros. HSBC: Price target to 3.82 euros and 0.87 euros National for Alpha Bank - Recommendation overweight Setting up overweight, best odds for these market gives HSBC in National and Alpha Bank, the analysis after the results were announced, placing the target price to EUR 0.87 for the Alpha Bank and 3.82 million for the National. Like many other analysts, so the HSBC, ypetonizei a favorable effect on the results of the two banks the recognition of deferred taxes, while without it the results of Alpha Bank initiated based on estimates and those of the National weaker than expected. According to HSBc, asset quality remains the National be higher than that of other banks are expected to strengthen the capital adequacy ratios of the sale of 40% of Finansbank, by the end of 2014. HSBC The notes inter alia that the Core Tier 1 ratio of Alpha Bank stood at 16 3%, from 15.6% in the first quarter of the year, according to the provisions of Basel III, the ratio stands at 12%. corresponding indicator The National formed in 16.2%, while according to the Basel III 11.4%. Deutsche Bank: The 4 euro price target for the National - Recommendation buy € 4 locates the target value of the National Deutsche Bank, keeping the recommendation buy (purchase) for their shares, and the results after the second quarter announced yesterday. According to Deutsche Bank in the second quarter benefited from the recognition of deferred taxation (DTA), recording, however, lower earnings estimates, after excluding the effect of the DTA. The Deutsche Bank, however, reserves the positive terms of the shares of the National Bank, giving a target price in EUR 4 and Recommendation buy (purchase). 's fundamentals (growth margin, operating profit, reducing the cost of risk) remain intact. On the other hand, the revenue shortfall was the main cause of lower earnings estimates and decreased operating income (net interest income and fees). Operating costs continue to decline, but lower estimates, while the cost of credit risk appears improved. NBG showed moderate widening of the net interest margin, mainly reflecting lower funding costs. We see this trend continue, according to Deutsche Bank, while loans remain a challenge. National Bank plans to issue up to 3 billion business loans by the end of the year, therefore expected an increase in the loan portfolio, while quality continues to deteriorate slightly, with nonperforming loans to reach 23.2% and coverage of 56%. Nevertheless, in Greece, the National Bank has superior liquidity and asset quality relative to other banks. Looking ahead, we see higher margins, better production supplies and disciplined control operating costs. Moreover, Deutsche Bank sees positive trends in profitability due to recovery activities in Turkey. Moreover, the asset sales could boost the capital adequacy. www.bankingnews.gr

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