August 31, 2010
EFG Eurobank Ergasias SA, Greece's second-largest lender by assets, said second-quarter net profit skidded 61%, weighed down by rising provisions on consumer loans and narrower margins.
Net profit for the three months to June 30 was €34 million ($43.3 million), down from €88 million a year earlier, as provisions for bad loans jumped 21% to €346 million, the bank said Monday.
This was better than analysts' average forecast of €31.9 million for net profit but in line with expectations of a 20% rise in bad-loan provisions to €345.2 million.
Greece has been hard hit by the global financial crisis and its own domestic debt problems. Eurobank is more exposed to nonperforming loans than other large Greek banks because its loan book is weighted to consumer loans.
"In this challenging environment, the Eurobank group demonstrated remarkable resilience and adaptability to rapidly evolving conditions, remaining strongly capitalized and profitable," Chief Executive Officer Nicholas Nanopoulos said in a statement.
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