In a report released on Tuesday, Moody’s upgraded Greek banks’ outlook to stable from negative on the back of improving profitability and funding, which are expected to normalise from a very weak base.
Eurobank posted an improvement in net profits to 85.4 million in the third quarter (Q3) of 2016 from 46.2 million in the previous quarter.
Piraeus Bank reported a positive bottom-line result for the second straight quarter, with net profits rising to 31 million euros in the third quarter (Q3) of 2016 from 20 million in the previous quarter.
Just one day after the election of the new chairman at the National Bank of Greece (NBG), which was seen as providing respite in the recent dispute between the NBG top management and the bank’s major shareholder, the Hellenic Financial Stability Fund (HFSF), things appear to be flaring up again at the lender.
The turmoil at the National Bank of Greece (NBG) caused by the dispute between the NBG top management and the Hellenic Financial Stability Fund (HFSF) over the new chairman at the bank seems to have temporarily ended on Wednesday.
While it is widely acknowledged that the key challenge for Greek banks going forward is tackling the huge stock of non-performing exposures (NPEs), a new complication emerged over the past few days regarding the appointment of a new chairman at National Bank (NBG).
Two of the four core Greek banks, Alpha and NBG, announced the completion of the sale of their hotel subsidiaries at the end of last week. Both transactions are part of the banks’ restructuring plans, which include, among others, disposal of non-core assets.
The interim financial statements of the Hellenic Financial Stability Fund (HFSF) published on Friday afternoon showed net losses of 577.83 million euros in the first quarter (Q1) of 2016 from 4.97 billion a year ago.
Attica Bank finds itself in the frontline of Greek political and banking developments after the Bank of Greece (BoG) rejected the nominations for the top positions, including the chairman and CEO, at the lender.
In addition to an update on the evolution of non-performing exposures (NPEs), the Bank of Greece (BoG) review report on the Greek banking system published in late July also revealed a number of characteristics regarding the quality of NPEs.