ATHENS--National Bank of Greece SA (NBG), the country's leading
lender, turned a profit in the first half of the year, boosted by
gains from international operations and lower provisions for bad
loans at home.
The bank reported a net profit of EUR344 million versus a loss
of EUR1.9 billion in the same period a year earlier. For the second
quarter of 2013, NBG postd an adjusted net profit of EUR126
million.
With the country in its sixth year of recession, NBG booked
EUR853 million in losses on sour loans, down 29% year-on-year.
The bank, which had expanded into neighboring markets before the
country's debt crisis erupted three years ago, said that operations
in southeastern Europe were starting to turn profits. Its Turkish
unit Finansbank added EUR180 million to the bank's core
profitability.
"NBG has the comparative advantage of its significant presence
both in Turkey and Southeast Europe, dynamic regions that enable it
to diversify its sources of income, thus adding substantial value
to the group," said CEO Alexandro Tourkolias in a statement.
"Our second quarter performance adds to the more optimistic
climate. In particular, the group's core profitability was positive
for a third consecutive quarter, pointing to a return to healthy
results, a necessary condition for sustainable growth."
Net interest income, a measure of the bank's core revenue, fell
9% year-on-year to EUR1.6 billion.
Like other Greek lenders, NBG said that it has improved its
funding mix and reduced its reliance on emergency loans from the
Greek central bank, which fell below the one billion mark at the
end of August.
Write to Stelios Bouras at stelios.bouras@dowjones.com
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