National Bank of Greece achieves high economic profits

Nine-month net profit of the National Bank of Greece rose 66 percent on strong loan growth and the consolidation of its recent Turkish acquisition.

Photo: National Bank of Greece achieves high economic profits

National Bank of Greece achieves high economic profits

The numbers also reflected the bank's sale in April of a minority stake in AGET Heracles Cement to majority shareholder Lafarge Group, and included a 20 million EUR(US$29.5 million) donation to the relief fund for victims of last summer's massive forest fires in Greece.

For the nine months to Sept. 30, the company said net profit was €1.31 billion (US$1.93 billion), compared with 791.4 million EUR(US$1.17 billion) in the same period a year earlier.

Net interest income rose by 53 percent to 2.22 billion EUR(US$3.25 billion) from 1.45 billion EUR(US$2.14 billion) in the same period of 2006, while total income rose to 3.28 billion EUR(US$4.84 billion) from 2.12 billion EUR(US$3.13 billion).

The figures were higher than analyst expectations of a 61 percent jump in net profit and slightly above expectations of a 52 percent rise in net interest income.

Like other Greek lenders, NBG has been riding a consumer lending boom in Greece thanks to low real interest rates, a buoyant property market and the easing of consumer credit restrictions.

In mid-August last year, NBG completed its acquisition of a 46 percent stake in Turkey's Finansbank and has since raised its holding to 89.44 percent.

"Foreign subsidiaries contributed over a third of total profit, with Finansbank holding the first place, delivering net profit of 349 million EUR(US$515 million)," Chairman and Chief Executive Takis Arapoglou said in a statement.

NBG shares closed Thursday up 0.80 EUR(US$1.18), or 1.9 percent, at 43.50 EUR(US$64.18). The Greek lender's shares have risen 21 percent this year, nearly double the 11 percent rise of the Athens Stock Exchange general index.