Greece's National Bank H1 profit dips, interest income jumps (updated)

National Bank of Greece

01/08/2023 15:59

(Adds NBG result details)
       ATHENS, Aug 1 (Reuters) - National Bank (NBG)  NBGr.AT ,
Greece's second-largest lender by market value, on Tuesday
reported a dip in first-half net earnings from the same period
last year as lower trading revenues offset a jump in net
interest income.
    NBG, 40.4% owned by the country's HFSF bank rescue fund,
reported net earnings of 530 million euros ($581 million)
against 546 million euros in the first half of 2022.
    The bank's trading income dropped 81% year-on-year in the
April-June period to 56 million euros.
    However, net interest income jumped to 1.05 billion euros
from 600 million euros a year ago, with the bank benefiting from
higher interest rates in the euro zone, strong economic activity
in Greece and the expansion of its loan book. 
    Greece's government sees growth at 2.3% this year, from 5.9%
in 2022, amid robust consumer spending, tourism and investment.
    The group's non-performing loan exposure ratio (NPE)
improved to 5.4% of its total loan portfolio from 6.3% at the
end of first half of 2022.
    Greek banks have cut their bad loan ratios to below 6% in
2023 from 45% in 2016, but that still remains above euro zone
peers. They returned to profit in recent years and hope to
resume paying dividends in 2024 for the first time since the
Greek debt crisis broke out in 2010.
    ($1 = 0.9119 euros)

 (Reporting by Lefteris Papadimas
Editing by Mark Potter)
 ((lefteris.papadimas@thomsonreuters.com; +30 210 3376477;
Reuters Messaging: lefteris.papadimas.reuters.com@reuters.net))