UPDATE 1 – Eurobank Quarterly Profits Rise, See Single Digit Bad Debt Rate This Year
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ATHENS, May 27 (Reuters) – Eurobank, one of Greece’s four largest lenders, increased its net profit in the first quarter compared to the same period a year earlier on lower operating costs and lower increase in fees and commissions, he announced Thursday.
The bank, which is 2.4% owned by the country’s HFSF bank rescue fund, reported net profit of 70 million euros ($ 85.4 million) from 57 million in the same period one year earlier.
Eurobank’s non-performing exposure ratio (NPE), which includes non-performing loans and other loans that may deteriorate, fell to 14.2% of its loan portfolio at the end of March from 28 , 9% at the end of the first quarter of 2020..
“As the moratorium period on loan repayments is over, a positive development is the weaker than expected formation of new NPEs,” Eurobank CEO Fokion Karavias said in a statement.
Commission income increased 6.9% year on year in the quarter to € 99 million, offsetting lower net interest income.
Eurobank, with operations in Bulgaria and Cyprus, said international operations were profitable, contributing to a net profit of 32 million euros.
The bank’s plan to securitize around 3.3 billion euros of NPE, dubbed “Project Mexico”, will apply to join the government’s “Hercules II” bad debt reduction program in the coming weeks.
Eurobank is aiming for a single-digit NPE ratio by the end of this year.
$ 1 = 0.8194 euros Report by George Georgiopoulos. Editing by Mark Potter