NBG Switches To EUR1M First-Quarter Loss In Romania

05.26.2011 By Florentina Dragu

The National Bank of Greece (NBG) Thursday said it has switched to first-quarter loss of EUR1 million on the Romanian market, from net profit of EUR12 million in the year-earlier period, hurt by falling revenue from interest and other fees.

NBG, majority holder in Romanian lender Banca Romaneasca said local earnings before provisioning stood at EUR9 million, down 63% from EUR24 million in the first quarter of 2010.

The lender said operating costs on the Romanian market decreased 8% on the year to EUR17 million in the first quarter.

Net revenues from fees and other taxes fell 73% to EUR3 million in January to March, whereas revenues from interests were down 26% on the year to EUR22 million.

The lender booked provisions in Romania worth EUR12 million in the first quarter, up from EUR10 million in the same months of 2010.

Overall loans provided on the local market stood at EUR2.2 billion end March, down 3% on the year. NBG said non-performing loans amounted to 8.5% of the total loans, up from 7.8% at the end of 2010.

Worldwide, NBG reported a net profit of EUR157 million in the first quarter, well above EUR21 million in the same period a year earlier.

NBG owns 89.07% in Banca Romaneasca. The group also has indirect control of Romanian insurer Garanta and operates three other companies on the local market, namely NBG Leasing IFN, NBG Securities Romania and NBG Factoring Romania.