ATHENS--Greece's Eurobank Ergasias SA (EUROB.AT), the country's
third-largest lender by assets, reported Thursday a 94 million euro
($106 million) loss for the first quarter of the year, amid
tightening liquidity conditions and higher funding costs.
The figure was broadly in line with market expectations and
compares with a EUR207 million loss in the corresponding period a
year earlier.
Loans loss provisions hit EUR303 million, down from EUR479
million, in the same period a year ago, as the Greek economy
slipped backed into recession in the first three months of the
year.
Deposits were down by EUR5.9 billion in the first quarter of the
year to EUR34.9 billion, "as a result of outflows recorded in the
domestic banking system especially during the first two months of
the current year."
Greek savers have been drawing on their accounts or sending
their money abroad out of concern over the stability of the
country's banking system since the government called snap elections
in January.
As a result of the drop in deposits and the loss of interbank
market access for Greek lenders, Eurobank's exposure to Eurosystem
funding rose to EUR29.1 billion from EUR12.5 billion at the end of
last year, it said.
"Operating in an uncertain and fast-changing environment, we
focused on addressing the challenges of the juncture and minimize
their impact on the medium-term targets of Eurobank and its
customers," said Eurobank CEO Fokion Karavias.
"Our consistent effort to reduce operating costs has brought the
cost-income ratio at low levels and has contributed to the final
result, despite pressures on the revenue side coming from the
increased dependence by the Eurosystem for liquidity," he said.
Net interest income for the three month period rose to EUR373
million from EUR367 million a year earlier, it added.
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