Deutsche Bank maintains price target on Marfin

Deutsche Bank has maintained its price target on the shares of Marfin Popular Bank at EUR 11, while also maintaining its buy recommendation. Though it notes that the 2006 core net profit of EUR 243 mln was 3% above its forecast, yet DB has revised lower its 2007 EPS by 6% and have revised up the 2008 EPS by 2%. The decrease is mainly driven by the increase in the amortization of intangibles due to the recognition of a part of the goodwill as intangible.
DB estimate that total non-recurring items stood at EUR 153 mln (o/w EUR 200 mln of capital gains, EUR 50 mln of non-recurring costs and EUR 12 mln of extra  provisions). The new group has managed to increase its loan book by about 21% in 2006. Net interest margin stood at 2.7% from 2.8% at the  end of 2005, due to margin pressure on loans.
Main risk relates to the economic development in Greece and Cyprus. Specific risk relates to the ability of the group to integrate MFG, Egnatia and Laiki in Greece.