Eurobank profitable in first half, says asset quality trends resilient (updated)

Hellenic Bank Pcl

31/08/2021 16:57

(Adds detail, CEO comment)
    ATHENS, Aug 31 (Reuters) - Eurobank  EURBr.AT , one of
Greece's four largest lenders, was profitable in the first half
on the back of lower provisions for impaired loans and higher
commission income, after losses in the same period a year
earlier.
    The bank, which is 2.4% owned by the country's HFSF bank
rescue fund, reported net profit of 190 million euros ($225
million) versus a loss of 1.16 billion euros in the first half
of 2020.
    Net earnings adjusted for restructuring costs and other
one-off items rose 10.7% to 195 million euros in the first half
from 176 million in the same period a year earlier.
    "Profitability is in line with our expectations, the NPE
(non-performing exposures) ratio is reaching single-digit, close
to 8%, by year-end," Chief Executive Fokion Karavias said in a
statement.
    Eurobank's net fee and commission income grew 16%
year-on-year to 209 million euros, mainly due to fees from
network activities, rental income and lending, it said. This
more than offset a 2.8% drop in net interest income.
    Its net interest margin dropped to 1.94% from 2.09% in the
first half a year earlier. Loan-loss provisions fell 17.3%
year-on-year to 224 million euros.
    The bank's CEO said deposits kept increasing in the banking
system, real estate prices are moving higher and asset quality
trends remain resilient.
    The tourism sector, a key driver of Greece's economy, was
performing impressively with revenue estimated to exceed 50% of
that in 2019, which was a record year, he said.
    Operations outside Greece were profitable with adjusted net
earnings reaching 73 million euros in the first half.
    Eurobank has agreed to merge its unit in Serbia with
Direktna Bank and acquire a 12.6% stake in Hellenic Bank
 HBNK.CY  in Cyprus, both deals part of its strategy to expand
its international activities.
     
  

($1 = 0.8458 euros)

 (Reporting by George Georgiopoulos)
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