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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.

Paul

The author Paul