National Bank reports improved Q2 results

Net interest revenue eased 3.7 pct to 750 million euros over the same period, while net interest revenue in Turkey grew 8.3 pct in local currency and by 2.2 pct in euro currency terms.

Group revenue, boosted by financial transactions results, totaled 972 million euros in the April-June period, up 10.3 pct from the previous quarter.

Operating expenses totaled 552 million euros, up 5.2 pct from the previous quarter (in Greece operating expenses grew 1.7 pct on a quarterly basis to 256 million euros) while payroll spending fell 0.7 pct.

National Bank said new loans in delay of more than 90 days fell significantly to 133 million euros in the second quarter from 477 million in the first quarter (in Greece new loans in delay fell to 41 million from 336 million euros over the same period respectively). In group level, the rate of delayed loans rose to 24.6 pct from 24.3 pct in the first quarter.

Deposits in group level fell 7.8 pct to 55.7 billion euros reflecting a continuing outflow of capital in the Greek banking system during the second quarter of the year, however, domestic outflow of deposits slowed to 3.6 billion euros from 4.8 billion in the first quarter. Following the imposition of capital controls, this trend was reversed leading to a positive flow of capital in the third quarter.

Funding through the Eurosystem grew to 27.6 billion euros at the end of June (ELA: 17.6 bln), from 23.6 billion in March. At the end of the third quarter, funding through the Eurosystem fell to 25.6 billion euros (ELA: 15.6 bln) while National Bank maintained a reserve of collaterals accepted by the ELA mechanism worth around 8 billion euros.

National Bank said its loan portfolio eased 0.9 pct to 73.3 billion euros reflecting a depreciation of the Turkish lira. Loans in Greece were unchanged at 45.8 billion euros, while lending in Turkey grew 4.3 pct in the second quarter.