Gold Magazine June - July 2013, Issue 27 | Page 93

banking

NBG Group for
reports profitability

{money}
Alexandros Tourkolias

second consecutive quarter

N

ational Bank of Greece
Group has reported profitability for the second
consecutive quarter, as
net profit in Q1 2013
amounted to €186 million, compared with
losses of €265 million in Q1 2012. After
taking into consideration the non-recurring
impairment loss resulting from the acquisition of Eurobank, totalling €159 million,
net profit amounted to €27 million. The
contribution by Finansbank was particularly positive, as it posted net profit of €155
million, while the Group’s SE Europe subsidiaries posted a positive contribution to
profitability following five successive negative quarters. In addition, progress made in
Greece’s economic adjustment programme
resulted in an upgrade in the country’s
credit rating, allowing the write-back of
provisions against claims on the Hellenic
Republic totalling €276 million.
On this point, NBG Group CEO Alexandros Tourkolias, said, “The discernible
improvement in the economic climate
reflects the belief that Greece has made
significant progress in its efforts to become
more competitive and forge a sustainable
growth path. Combined with progress in
a series of macroeconomic indicators, the
banking sector witnessed the gradual but
steady return of deposits and the relative
improvement in the quality of the loan
portfolio. In general, the core profitability
of banks is now showing clear signs of improvement.”
The stabilization of the Group’s core
banking revenue, after a long series of
quarters of decline, is seen as particularly
encouraging, as these developments provide
solid evidence that the slowdown in the top
line is bottoming out. This development
of particular note, as the Group showed a
stabilization across the main components
of core revenue (net interest income and
fees) as well as across all geographical areas
where the it operates.
The Group’s strategic focus on rational-

izing operating expenses continues to generate
results; operating expenses in G &VV6R