Eurobank announced that it record net income of €74m after the creation of €130m collective reserve to cover potential future risks.
Deposits remain stable in the last six months, despite the modest decrease in 1Q11, said the bank in an announcement.
Moreover:
-Tier I ratio rises to 11.9% or by 130bps versus 2010 year-end
-Deposits remain stable in the last six months, despite the modest decrease in 1Q11
-Liquidity ratios unchanged – The loans to deposits ratio recedes for the Group to 123%, from 127% in 2010 and for “New Europe” to 117%, from 131%
-Recurring pre provision income improves by 2% against the previous quarter
-Operating expenses decline by 3%yoy and by 8%qoq
-Bad debt provisions increase by 4%qoq, further strengthening the balance sheet
The bank’s CEO, Nicholas Nanopoulos commented:
“During the first quarter of the year, the Greek economy has been confronted with mounting and critical challenges. Restoring macroeconomic stability and confidence in the country’s prospects and regaining international credibility are key priorities. These can only be achieved through the immediate and decisive implementation of a cohesive Medium-Term Adjustment Program, targeted principally toward the radical overhaul of the public sector, structural reforms and privatizations, that will restore fiscal discipline, enhance the country’s competitiveness and support a reliable plan of sustainable growth.
During this challenging quarter, our Group, benefiting from the continued trust of our clients and efforts of our employees, demonstrated resilience and adaptability to rapidly evolving conditions. We further strengthened our balance sheet and continued to manage risks effectively. Capitalizing on our strategic initiative in the Polish market, we managed a substantial improvement to our capital adequacy ratios, and created a collective reserve to cover future prospective risks, while, at the same time, we managed to record a profit of €74m.
Despite the challenging conditions, we remain committed to the support of our clients, contributing to the development initiatives of the local economies, and fostering extrovert growth, innovation, and healthy private entrepreneurship.”
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