Marfin Popular Bank reported a 147% YoY increase in net profit to EUR 170.3 mln, with recurring profits up 75.4% to EUR 126 mln. The Bank increased its 2007 earnings guidance from EUR 360 mln to EUR 420 mln.
Group net earnings (before minorities) reached EUR176 mln (CYP102.3m) in 1Q07 vs. EUR36 mln (CYP20.9m) (as reported) and EUR72 mln (CYP41.8m) (pro-forma) in 1Q06, rising by 145% y/y on a pro-forma basis; Greek net earnings up 47% to EUR31 mln (CYP18m) and Cyprus net earnings (including EUR50 mln of exceptional items) up 310% to EUR126 mln (CYP73.2m); Return on Tangible Equity (RoTE) reached 31.1% in 1Q07.
Group recurring operating income i.e. adjusting for the capital gain for the sale of the Hellenic Bank & Universal Life stakes rose by 31% to EUR277 mln. Group recurring profit after tax (before minorities) rose by 75% to EUR126 mln (CYP73.2m).
Group NII rose 47% to EUR163 mln with Greek NII up 29% and Cyprus NII up 58%, on the back of strong loan and deposit growth and expanding margins both in
Group net interest margin expanded by 43 bps to 3.12% in 1Q07. Margin expansion has been driven by widening of deposit spreads in both countries.
Group Operating Income surged 54% y/y to EUR327 mln, with Greek revenues up 20% y/y to EUR108 mln and
Group performing loans rose by 33% y/y and 14% on a sequential basis to EUR 13.4 bln, adding EUR 1.7 bln of new loan balances in 1Q07;Â in
Group deposits were up 25% y/y at EUR 17 bln; Greek and Cypriot deposits 13% and 21% higher y/y. The above trends reflect market share gains in
Group headline cost increased by 13.8%, while underlying cost growth i.e. ex-intangible depreciation was only 9% higher;Â on a sequential basis, group headline and underlying costs were down by 2% and 6% respectively. Group cost-to-income ratio experienced a significant improvement, dropping from 48% to 35%.
Asset Quality trends continued to improve with the NPL ratio dropping to 6.4% compared to 9,8% and the NPL coverage increasing to 67.8% compared to 51.3% a year ago on a like for like basis. Group provisions were 25% lower y/y; provisions in
Earnings per share climbed to EUR 0.231 for the three-month period to 31.03.07.
Commenting on the 1Q07 results MPB Group CEO Andreas Vgenopoulos said: «The strong operating performance evidenced in 1Q07 is a reflection of the group’s improved momentum and its tremendous potential. Our strong results, which have materially exceeded management expectations, have been underpinned by renewed momentum from the three-way merger, the enthusiasm exhibited by our staff throughout the group and the success of our ongoing product and marketing initiatives. The above developments have been accompanied by a material uplift of the group’s brand awareness, thus enabling it to benefit from a rapidly expanding customer base and improved positioning.»
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Based on the group’s updated business plan the 2007 earnings guidance has been revised up 16.7% to EUR 420 mln; the group’s detailed 2007-2009 business plan will be presented during MPB’s Investors Day on 17 May 2007 in
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FINANCIAL RESULTS
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|
 |
1Q06 |
1Q07 |
% change |
|
(€ m) |
proforma |
actual |
on proforma |
|
Net interest income |
111.0 |
163.3 |
47.1% |
|
Net fees and commissions income |
58.4 |
61.6 |
5.5% |
|
Financial & other income |
43.0 |
52.3 |
21.6% |
|
Recurring operating income |
212.4 |
277.2 |
30.5% |
|
Income from the sale of Hellenic Bank & Universal Life (non-recurring) |
0.0 |
50.0 |
– |
|
Total income |
212.4 |
327.2 |
54.0% |
|
Operating expenses |
-101.7 |
-115.7 |
13.8% |
|
Provision for loan impairment |
-25.0 |
-19.0 |
-24.0% |
|
Profit before tax |
85.7 |
192.5 |
124.6% |
|
Tax |
-13.8 |
-16.4 |
18.8% |
|
Net profit |
71.9 |
176.1 |
144.9% |
|
Recurring net profit |
71.9 |
126.1 |
75.4% |
|
Minority interest |
2.8 |
5.9 |
+109.4% |
|
Net profit after minority interest |
69.1 |
170.3 |
146.5% |
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|
(€ m) |
FY 2006 |
1Q07 |
% change |
|
Loans to customers |
11,965 |
13,825 |
15.5% |
|
Total assets |
22,495 |
24,752 |
10.0% |
|
Customer deposits |
16,142 |
17,108 |
6.0% |
|
Total equity |
3,039 |
3,461 |
13.9% |
|
Key ratios |
1Q06 |
1Q07 |
change |
|
Tier 1 |
n/a |
12.4% |
– |
|
Capital adequacy ratio |
n/a |
13.4% |
– |
|
Cost/income |
48.1% |
35.4% |
-1270 bps |
|
NIM |
2.69% |
3.12% |
+ 43 bps |
|
NPLs |
9.8% |
6.4% |
-340 bps |
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