The Greek national bank increased its profit in the first quarter year-on-year, the provisions for bad loans decreased

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Adds details, comment from the CEO

Athens, May 28 (Reuters) – – National Bank (NBG) NBGr.AT, one of Greece’s four largest lenders, reported higher net income on Friday January-March than the year-ago quarter, driven by lower provisions for impaired loans.

NBG, 40 percent owned by the country’s bank rescue fund HFSF, said net income from continuing operations reached 578 million euros ($ 703.77 million) from net income of 407 million euros in the first quarter of 2020.

The National Bank’s share of non-performing exposures (NPEs), which include non-performing loans and other loans that are likely to go bad, fell from 13.6% at the end of the fourth quarter last year to 13.1% in late March % of their loan book.

“Our domestic NPE commitment is now 4.1 billion euros, which has been further reduced since the end of 2020 due to persistently negative organic education despite COVID-19,” said CEO Paul Mylonas in a statement.

He said that the performance of the loan payment after the repayment moratoria expired “has remained encouraging with less than 7% of moratoria recipients more than 30 days in arrears”.

The bank announced that it was providing additional solutions to borrowers who continued to experience temporary economic difficulties due to the COVID-19 post after the moratoria expired. These loans amounted to around 300 million euros.

According to NBG, operating costs decreased by 9.3% year-on-year to 179 million euros in the first quarter, due to strong savings in staff costs, mainly due to voluntary exit programs in 2020 and 2019 that shift the workforce around 900 reduced.

($ 1 = 0.8213 euros)

(Reporting by George Georgiopoulos, editing by Louise Heavens)

(([email protected]; +30 210 337 6437; Reuters Messaging: [email protected]))

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