Greece’s NBG Q2 loss widens on bad debt provisions
Greece's largest lender National Bank (NBG) on Saturday reported a loss in the second quarter as bad debt provisions weighed.
The bank reported a net loss of 1.614 billion euros ($1.78 billion) versus a loss of 159 million euros in the first quarter.
Non-performing credit edged up to 24.6 percent of its loan book from 24.3 percent at the end of March. Provisions for impaired loans in Greece reached 2.3 billion euros from 323 million in the first quarter.
Results of the European Central Bank's stress test showed that NBG must cover a capital shortfall of 4.6 billion euros.
"NBG intends to cover the capital shortfall under both scenarios (of the ECB stress test) with private sector funds as much as possible and by its own capital actions, aiming to limit the need for state aid which would burden Greece's debt," CEO Leonidas Fragiadakis said in a statement.