Hellenic Bank warns of first quarter loss

Hellenic Bank Public Company Ltd (HB) issued a profit warning for the first quarter of 2009, indicating that it will record a loss in a stark reminder that the recent advance in equity prices is fragile and not backed by fundamentals.
According to Management, major catalysts for the expected poor performance include the increase in provisions for impairments, the increase in the costs from deposits and the drop in both net interest income (NII) and non-interest income. Given the low visibility on earnings for 2009, the Bank’s strategic targets for the year will be to maintain its healthy liquidity, improvement of quality in the Group’s loan portfolio, the capital adequacy indices together with a conservative policy in terms of growth. Management also argued that due to the uncertainty surrounding the global economy and financial markets, HB’s results are subject to high volatility and because of the uncertainty in the financial environment, these estimates may be revised.
A year ago in the first quarter, HB had reported EUR 23 mln in profit.

Muskita warns of lower profit
Muskita Aluminium Industries Plc (MAI) also indicated that due to the current financial crisis, domestic demand is expected to drop; hence profitability for the year 2009 is expected to be lower compared to 2008. The Company’s Board approved the final audited financial results for the year ended 2008, with profit after tax at EUR7.8 mln. Upon approval of the final FY08 results the Company’s Board also decided to propose to the AGM of the shareholders the payment of a dividend of EUR0.07 per share (FY07: EUR0.10).