Eurobank reports 406-mln-euro profit in Q3‏

3 November 2015
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Eurobank on Tuesday announced profits of 406 million euros in the third quarter of 2015, but a loss of 1.0 billion euros in the January-September period this year. The bank said pre-provision earnings grew 8.4 pct in the third quarter from the second quarter to 230 million euros.

Loans, pre-provision, fell to 51.7 billion euros, from 52.8 billion at the end of June, with loans to enterprises and households totaling 26.7 billion and 24.9 billion euros, respectively.

Deposits in Greece fell by 207 million euros to 21.9 billion, while deposits (group) totaled 30.4 billion euros, of which 53.3 pct were saving and option deposits and 46.7 pct time deposits.

Borrowing from the Eurosystem fell to 29.6 billion euros at the end of October, from 32.7 billion in June with the loan/deposit rate at 131.2 pct.

Nikos Karamouzis, the bank’s chairman, commenting on the results said that a recapitalization of Greek banks was a landmark for the banking system of the country laying the foundations for the start of a return of the economy to growth rates. “Capital fortification will give Greek banks the preconditions to gradually regain their deposit base and the trust of international markets. This way, they will safeguard the necessary liquidity to fund households and enterprises, and the economy in general, to definitely get out of the recession and to be rebuild on a new, sustainable growth model, based on innovation, healthy private business activity and the production of internationally competitive products and services,” Karamouzis said.

“Improving corporate governance, strengthening transparency and meritocracy, creating internal control institutions, were critical challenges, for banks to respond to new needs. Eurobank, as the latest stress tests showed, has all the preconditions and the will to play a leading role in the recovery of the Greek economy. With a clear business vision and fully aware of our responsibility towards our customers, shareholders, workers and the society, we will dedicate all of our forces in creating a pioneer bank of the private sector in Greece,” the Greek banker said.

Fokion Karavias, chief executive of Eurobank, said that the third quarter results offered evidence of Eurobank’s resilience through adverse conditions created by the imposition of capital controls. The new loans in delay were significantly lower compared with the first quarter, while an increase in pre-provision earnings highlighted the future performance of the bank in a stable environment.

Karavias noted that Eurobank was beginning a share capital increase plan with the aim to cover the capital needs defined by the European Central Bank (2.1 billion euros). “Our goal is to offer Eurobank all the preconditions to become a leader during the return of the Greek economy to growth, supporting our customers and creating value for our shareholders and the society,” he stressed.

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