ECONOMY

Banks set to post big losses in Q3 results

The country’s main banks are again set to present major losses when they publish their third-quarter results on Thursday and Friday.

Eurobank Ergasias is set to announce its Q3 result searly on Thursday morning, followed by Piraeus Bank in the afternoon and National and Alpha on Friday.

Estimates by Euroxx analysts suggest that National will show losses of 1.39 billion euros, Alpha’s losses will amount to 490 million euros and Piraeus’s will be 321 million euros.

Having already factored in pretax losses of 26 billion euros from the debt restructuring, the main factors that will determine the third-quarter figures will be the deterioration of financial conditions in the country, which have led to a major increase in nonperforming loans (NPLs), and the decline in banking activity.

With NPLs exceeding 20 percent of all loans, banks will resort to large provisions, wiping out their profits. Interest revenues are expected to have shrunk by more than 15 percent, while commission revenues will have contracted by about 5 percent. Crucially, the results will include the amount each bank will require for its recapitalization.

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