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>>> Two Greek lenders return to profitability in 2016


By Nektaria Stamouli

Mar 31, 2017



http://www.marketwatch.com/story/two-greek-lenders-return-to-profitability-in-2016-2017-03-31?siteid=bigcharts&dist=bigcharts



ATHENS -- Greek banks Alpha Bank and National Bank returned to profitability in 2016 and reduced their exposure to nonperforming loans.

Greek lenders have been saddled with a mountain of bad debts caused by the country's economic crisis that wiped out more than a quarter of the country's economic output.

Some progress was made last year, but the return of financial jitters in Greece, as bailout talks between Greece's government and its creditors drag on, is hampering banks' effort to return to normality.

National Bank of Greece, Greece's second-largest lender by assets, saw its profit rising significantly to EUR73 million ($78.6 million) for the three months to December, excluding assets held for sale and discontinued operations, after a net profit of EUR6 million at the end of September.

For 2016 as a whole, the bank posted a net profit of EUR53 million after a loss of EUR2.49 billion in 2015.

The nonperforming loans ratio was lower at 32.9% in the fourth quarter from 34.3% the quarter before. Its loan impairment charges fell to EUR684 million from EUR3.53 billion in 2015.


"In 2017 our strategic priorities include further reducing our nonperforming exposure, in line with targets agreed with the [eurozone bailout fund] ESM," NBG's CEO Leonidas Fragiadakis said in a statement.

Alpha Bank, the country's fourth-largest lender, also posted a profitable quarter in the October to December period, but saw its profit shrinking to EUR20.1 million down from EUR41.2 million due to higher loan loss provisions.

For 2016 as a whole, the lender posted net profit of EUR42.3 million euros from a EUR1.37 billion loss in 2015.

Nonperforming loans eased slightly to 38.1% of its loan portfolio, from 38.3% in the previous quarter. Provisions for bad loans rose 18% on-quarter to EUR304.

Greece's government is under pressure from its international creditors to enact further fiscal belt-tightening, including cuts to pensions. The International Monetary Fund also wants further business-friendly overhauls of Greek labor laws. Ruling left-wing Syriza party of Prime Minister Alexis Tsipras, is holding out for concessions on fiscal policies and labor rules.

Since the beginning of 2017, Greek bank deposits dropped by more than EUR3 billion and nonperforming loans spiked again by about EUR1 billion, reversing the late 2016 downward course, according to bank officials.

Earlier in March, the European Central Bank increased the amount of money Greek banks can borrow under an emergency lending program for the first time since August 2015.

"The implementation of our plan is also dependent on the recovery of the Greek economy and the full and proper implementation of pending NPL reforms," Demetrios Mantzounis, Alpha Bank's CEO, said in a written statement. "In this respect we are looking forward to the timely successful completion of the second review which will significantly contribute to that end."

Greek lenders aim to cut their nonperforming exposure from EUR107 billion to EUR66.7 billion by 2019

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