Eurobank profits jump as fee income rises and provisions fall

ATHENS, May 25 (Reuters) – Eurobank (EURBr.AT), Greece’s biggest lender by market value, on Wednesday reported higher net profit in the quarter ending March compared with the same period a year earlier, thanks to higher fee income and lower provisions for loan losses.

The bank, which is 2.4% owned by the country’s HFSF bank rescue fund, reported net profit of 270 million euros ($288.28 million) compared to 70 million in the first quarter of 2021.

Provisions for bad debts decreased by 52.7% year-on-year to 62 million euros.

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“Despite further headwinds, we are on track to meet our targets for the year in all areas, as set out in the three-year plan,” Chief Executive Fokion Karavias said.

“We are ready to deliver on our promise of a 10% return on equity this year and the distribution of dividends from 2022 earnings.”

The Greek economy is expected to grow at a weaker but still healthy pace of 3-3.5% this year, supported by EU funds, an increased appetite for investment and a strong recovery in tourism, he said. he declares.

Eurobank’s net interest income increased 1.4% year-on-year to 339 million euros while commission income increased 24.7% to 123 million, mainly due to commissions from network activities, wealth management and its credit card business.

On the asset quality front, the bank’s non-performing exposures (NPE) ratio fell to 6.0% at the end of March from 6.8% in December, with its stock of NPEs shrinking to $2.4 billion. euros.

He said new loan disbursements in Greece reached 2.3 billion euros in the first quarter.

($1 = 0.9366 euros)

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Reporting by George Georgiopoulos Editing by Bernadette Baum

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