Greece's fourth-biggest lender Piraeus Bank on Friday reported a dramatic drop in first-quarter net profit to two million euros ($2.8 million), 73 percent lower than a year earlier.
The group noted that its tax burden had increased to eight million euros in the first three months of the year compared to just two million in 2010.
Total group revenues rose by 11 percent to 383 million euros, while operating cost declined by three percent at 198 million euros.
"In response to the unfavourable conditions of the Greek market, the path we pursue consists of containing our costs, improving our revenues and at the same time we remain prudent in managing risks and liquidity," bank chairman Michalis Sallas said in a statement.
"Our efforts in this direction will continue in the future, while at the same time we focus on supporting the Greek economy and its productive sectors," Sallas said.
Greece is going through its gravest economic crisis in decades, fueled by a soaring public debt and a deep recession that has choked market liquidity.
The government has repeatedly called on the banking sector to consolidate and pool its resources to help the economy.
Last year Piraeus Bank tabled an offer to buy two smaller state banks but subsequently withdrew the proposal.
It has a network of 882 branches in the Southeastern Europe and the eastern Mediterranean including 360 in Greece and a workforce of over 13,000.
The group is active in Albania, Bulgaria, Romania, Serbia, Ukraine, Cyprus and Egypt. It also has 14 branches in New York.
AFP
