Marfin Popular Bank 3month profit at €40mln

Marfin Popular Bank (MPB) announced on Thursday it recorded a 40-million euro net profit for the first quarter of 2009, lower by 44% compared to the last quarter of 2008.

A press release issued by MPB says profits before provisions stood at 89.9 million euro, down by 33% compared to the corresponding quarter of 2008.

Commenting on first-quarter financial results, Efthymios Bouloutas, CEO of MPB Group said ''undoubtedly the Group’s operating performance in the first quarter of 2009 reflects the repercussions of the crisis’ climax, which was reached during the last two quarters of 2008.''

According to the release, first-quarter 2009 profits have been affected by the significant deterioration in international capital markets, which led to a significant increase of the cost of money, the decline of business activity in the markets the Group operates in, and the Management’s decision to increase provisions in order to arm the Bank against future risks.

Provisions rose by 95%, to 48.6 million euro. However, non-performing loans increased marginally by 5.1% at March 31 2009, compared to 4.9% at March 31 2008.

Net interest income amounted to 122.6 million euro, recording a 28% decrease compared with Q1 2008 ''reflecting the high pressure on the net interest margin that dropped to 1.35% in March 2009 from 2.40% in December 2008.

Operating expenses adjusted for the Bank’s acquisitions in 2008 reached 133.2 million euro in first-quarter 2009, increased by 8% compared with the first-quarter 2008 and 29% lower compared with the fourth-quarter 2008, while total operating expenses were 15% higher compared with the corresponding period last year and 24% lower compared with the fourth-quarter of 2008.

Concluding Bouloutas said MPB's moves to improve the Banks medium and long-term profit potential, such as pre-emptive provisions, maintaining a high level of liquidity and improving net interest margin combined with the ongoing improvement in some key leading economic indicators, ''should underpin Marfin Popular Bank's future profitability.''