Greece’s third-largest lender Eurobank more than doubled its first-quarter net profit on the back of lower provisions for impaired loans and higher fee and commission income, it said on Friday.
Eurobank, which is 2.4% owned by the country’s HFSF bank rescue fund, reported net earnings of 57 million euros, up from €22 million in last year’s first quarter.
Eurobank said credit loss provisions dropped 23.4% year-on-year to 126 million euros, while nonperforming exposures (NPEs) eased to 28.9% of its loan book from 29.2% at the end of December.
The bank is nearing completion of a deal to sell an 80% stake in its FPS loan collection subsidiary to Italy’s top debt recovery firm doValue.
“All outstanding matters have been concluded and we expect the formal closing in the first half of June. As a result, Eurobank will have the lowest NPE ratio in Greece at 15.6%,” the bank’s chief executive Fokion Karavias said.
“After a period of turmoil, economic activity should start to normalize and our de-risked balance sheet post the Cairo transaction will be the base for above-par profitability for Eurobank,” he added.