Greek bank records second straight profitable quarter
(1 September 2016 – Greece) Greek lender Eurobank has remainded profitable for a second straight quarter, helping it focus on a strategy to cut bad debts accumulated during Greece's extended recession.
"The second consecutive profitable quarter enables the bank to focus on its strategic goals. Our main priority remains the active management of problem loans," Chief Executive Fokion Karavias said in a statement.
Greece's third-largest lender by assets, reported net earnings of €46 million (A$68 million) versus 60 million in the first quarter.
The country’s domestic banks still carry large problem loan portfolios following a long recession, record high unemployment, which made it difficult for borrowers to service their debts.
More than 40 percent of the sector's loans are non-performing, making the reduction of the bad loan stock the biggest swing factor for Greek lenders as they continue to provision for impaired credit.
Banks are also grappling with funding gaps after deposit flight last year that led to capital controls in June 2015. They still depend on central bank funding to plug the hole.
Karavias said the group, with subsidiaries in the Balkans, saw a €1.1 billion euro increase in deposits in the second quarter, reflecting its capacity to strengthen its deposit base and continue to reduce dependence on central bank funding.
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