Pressure on bank stocks unjustified, says Eurobank
Eurobank, the country’s second largest lender, said yesterday that the recently observed weakness in Greek bank stocks is unjustified and that its second quarter profits will be stronger than in the previous quarter. Eurobank shares have lost almost 28 percent in the last three months, compared with a 19 percent slide in the Athens bourse’s benchmark general index. The bank index has shed 18 percent. Financials have taken a beating on fears of a profit slowdown and weak sentiment in the sector globally. «Shares of Greek banks in the recent period have suffered unjustified pressure. This is not consistent with the fundamentals of the Greek and the regional markets,» Eurobank CEO Nikos Nanopoulos said in a filing to the Athens bourse. «(Eurobank’s) business growth in the past quarter has been very satisfactory. Second quarter results are expected to be higher than the first quarter, driven mainly by organic sources.» Earlier this week, Piraeus Bank and Bank of Cyprus both said they remain on target to achieve the targets set in their three-year business plans despite adverse international conditions.
