Saturday April 25, 2015 Search
Weather | Athens
14o C
09o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Bank results take beating from debt haircut

 Eurobank and Piraeus to require over 13 billion euros between them in recapitalization

Eurobank will need 5.8 billion euros and Piraeus Bank another 7.3 billion in the context of the planned recapitalization to satisfy their capital requirements, the two banks announced on Thursday upon publishing their nine-month results.

The above amounts include all the requirements of the Bank of Greece and what the BlackRock audit into the banks’ needs showed last year.

The major blow from the private sector involvement (PSI) in the Greek debt restructuring, the great increase in provisions due to the deterioration of financial conditions and the reduction in revenues have led to an increase in losses for both lenders in the first nine months of the year.

At end-September Eurobank showed losses of 1.095 billion euros, against losses of 575 million euros in the same period last year, while Piraeus showed losses of 1.253 billion euros in the January-September period against losses of 874 in the first half of this year.

The deterioration of financial conditions due to the major uncertainty and the political instability left little room for maneuver: Eurobank’s total operating revenues were reduced by 24.7 percent, while provisions for nonperforming loans (NPLs) amounted to 1.2 billion euros, up by 23.3 percent on a yearly basis. Bad loans accounted for 21.3 percent of all loans in Eurobank’s portfolio.

Piraeus took its provisions to 1.4 billion euros, while the bank’s results were burdened further by 300 million euros due to the Greek state bonds, wiping out the profits before tax and provisions that had amounted to 513 million euros. NPLs amounted to 18 percent of all Piraeus Bank loans.

Attica Bank registered nine-month losses of 108 million euros, but retained its positive net position despite the huge provisions of 351.2 million euros, up 36.8 percent on last year. Finally, Geniki Bank showed losses of 88.8 million euros in the year to September, but operational costs declined by 10.6 percent year-on-year.

National and Alpha are set to announce their nine-month results on Friday.

Late on Thursday, international agency Standard & Poor’s announced that despite upgrading Greece’s credit rating to B- this week, it maintains the rating for the country’s biggest banks at CCC, considering that they continue to face huge challenges.

ekathimerini.com , Thursday December 20, 2012 (22:25)  
Construction material costs slide anew
Navios taps German shipping opportunities
Gov’t eyes state company reserves
Thessaly stores likely to remain closed on first Sunday of spring sales
Greece not playing a game of chicken on debt
Greek Foreign Minister Nikos Kotzias said on Friday he respects Germany just not German politics, nor the way Berlin views Greece’s economy, which faces the prospect of running out of money ...
Tsipras to see local officials as decree dispute heats up
Prime Minister Alexis Tsipras is due to meet regional governors and mayors in Athens on Saturday in an attempt to defuse a political row that has erupted as a result of the government’s deci...
Inside News
SOCCER
Rival soccer fan clashes leave man stabbed
One man was stabbed and several others slightly injured as rival Thessaloniki club fans clashed late on Friday at an event held by Aris supporters. Reports from Greece’s second city stated t...
TRACK & FIELD
Grabbing the shoes that have gone a long way
Greek Marathon legend Maria Polyzou is calling on everyone to join her in her charity run at the Dusseldorf Marathon on Sunday, April 26, by bidding for her special shoes she will race in an...
Inside Sports
COMMENTARY
Five years ago
This week marks five years since Greece officially entered a period of crisis when then Prime Minister George Papandreou announced that the country would seek a bailout from the eurozone and...
EDITORIAL
Slippery slope
The extremely divisive language that is currently being used by parliamentary deputies and coalition ministers is both unacceptable and dangerous. It is high time that the tired, old argumen...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Greece not playing a game of chicken on debt
2. Rival soccer fan clashes leave man stabbed
3. Tsipras to see local officials as decree dispute heats up
4. Kotzias talks Cyprus at UN
5. Construction material costs slide anew
6. Navios taps German shipping opportunities
more news
Today
This Week
1. Five years ago
2. Greece not playing a game of chicken on debt
3. Slippery slope
4. Greece offers concessions in talks with creditors
5. EU frustration mounts as Greeks try to sidestep aid process
6. FinMin sources say gov't 'not bluffing' in opposing austerity
Today
This Week
1. Quarantine for Greek bank subsidiaries in neighboring countries
2. Greek government's popularity takes a hit as talks drag on
3. Putting off payments led to Q1 budget primary surplus
4. Obama calls for flexibility in Greek reform talks in brief exchange with Varoufakis
5. It's up to the Greek government to ensure deal with lenders, says ECB's Coeure
6. Europe's collision course with Greece
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.