NBG could be in the next wave of M&A, says SSSB consultant

National Bank of Greece (NBG) could launch a new round of consolidation in the domestic banking sector in the next six to nine months, Schroder Salomon Smith Barney (SSSB) consultant Miranda Xafa predicted in a research note yesterday. NBG’s management has clearly stated that entering a new wave of domestic M&A (mergers and acquisitions) is on the agenda… we believe NBG’s time is getting close, she said. The task could prove to be challenging, as the bank’s dominant market share is set to impede its cost-cutting ability while the tough labor market in Greece forces banks to rely heavily on natural attrition of their staff, Xafa warned. She added the bank will be affected more by costs than by revenues.