BUSINESS

Greek lender Eurobank swings to profit in Q1

TAGS: Banking

Eurobank turned profitable in the first quarter for the first time since the third quarter of 2011, helped by lower provisions for impaired loans and stronger net interest income.

Greece’s third-largest lender by assets, which is 2.4 percent-owned by the country’s HFSF bank rescue fund after its recapitalization late last year, on Tuesday reported net profit of 60 million euros versus a loss of 175 million euros in the final quarter of 2015.

Credit loss provisions fell 33.4 percent quarter-on-quarter to 175 million euros.

Nonperforming loans eased to 34.8 percent of its loan book from 35.2 percent in last year’s fourth quarter.

“The results confirm that Eurobank is on course to achieve its main aim: to be profitable in 2016. We had the first positive result after five years of unprecedented challenges in the Greek banking system,” chief executive Fokion Karavias said in a statement.

[Reuters]

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