Bank of Piraeus loss decreases as loan provisions decrease

The logo of Bank of Piraeus can be seen outside a branch in Athens on March 26, 2014. REUTERS / Yorgos Karahalis / File Photo

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ATHENS, Nov. 19 (Reuters) – Bank of Piraeus (BOPr.AT), one of Greece’s four largest lenders, reported a smaller loss in the third quarter than in the previous three months, as expected, provisions for bad debts having decreased.

The bank reported a net loss from continuing operations of 635 million euros ($ 721 million), from 2.045 billion euros in the second quarter, as provisions for loan impairment fell to 811 million euros from 2, 28 billion.

Analysts’ forecasts ranged from a loss of 630 million euros to 800 million euros.

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“Our plan to reduce NPEs (non-performing exposures) is on track with more than 90% of actions already executed. The reduction in NPEs over the first nine months of the year amounts to 16 billion euros, bringing our NPE ratio down to 16%, “said Managing Director Christos Megalou.

He said the bank is getting closer to a return on tangible equity above 5%, as well as a single-digit NPE ratio “in the coming period.”

Bank of Piraeus’ stock of NPE exposures stood at € 5.9 billion at the end of September, compared to € 22.5 billion at the end of 2020, and its NPE ratio improved to 16% from 23% end of June and 46% six months ago. .

The impairments in the third quarter were associated with losses incurred due to the securitization of bad debts from the ‘Sunrise 2’ portfolio and the NPE leasing portfolio, which were classified as held for sale in the third quarter, said the bank.

Net interest income fell 22% from the second quarter to 319 million euros as the bank got rid of more bad debts, but net fee and commission income rose 1% to 102 million through its asset management, investment banking, funds transfer, bancassurance and card activities. companies.

The bank said deposit costs remained favorable as increased performing loan balances, also expected with the launch of the Recovery and Resiliency Facility (RRF) funds from next year, would generate interest income. additional on loans.

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Reporting by George Georgiopoulos; Editing by David Clarke

Our Standards: Thomson Reuters Trust Principles.

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