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Piraeus Bank swings to profit on lower provisions

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Greece’s Piraeus Bank, the country’s largest lender based on assets, turned to profit in the second quarter as it had a lower provision for impaired loans.

The bank reported Tuesday a net profit of 20 million euros (£17.01 million) after a net loss of EUR37 million (£31.46 million) in the first quarter of the year. Quarterly loan-loss provision fell by 8% to EUR265 million (£225.32 million) at the end of June, down from EUR289 million (£245.78 million) in the first quarter.

Non-performing credit dropped for a third consecutive quarter, to 39.2%

Greek banks have been saddled with a mountain of bad debts, exceeding EUR100 billion (£85.03 billion), as a result of the country’s eight-year economic downturn that has wiped out more than a quarter of the country’s economic output.

Piraeus Bank is 26.2% owned by the country’s bank rescue fund HFSF after its recapitalization late last year.

The bank said it remained on track to return to profitability in 2016.

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Paul

The author Paul