Marfin Popular Bank’s financial results for the second quarter of 2009 indicated a net profit rise of 26% to 50.3 million EUR compared to the first quarter of the year, due to significant improvement in operating income combined with cost containment.
In a statement, Marfin said that the Group’s pre-provision profit increased 46% on a sequential basis to 131.1 million EUR; Group net profit attributable to shareholders amounted to 90.3 million EUR for the first-half 2009, with provisions increasing almost threefold on an annual basis to 123.6 million EUR.
The net interest income rose to 163.4 million EUR in the second-quarter of 2009, which was 33% higher on a sequential basis, as net interest margin improved significantly to 1.71% in second-quarter 2009 from 1.35% in first-quarter 2009; For the six-month period, net interest income stood at 286.0 million EUR, 20% lower compared with the same period last year.
The Group’s s liquidity with loan-to-deposit ratio stood at 96.5%. Loans reached 24.1 billion EUR posting an annual increase of 14%, while deposits amounted to 24.9 billion EUR recording an annual increase of 5%.
CEO Thimios Bouloutas said the significant improvement in operating performance in the second-quarter of 2009, compared to the first-quarter 2009, which was crystallized in rising operating income and profits, reflects the Group’s “prudent balance sheet management and the successful implementation of our cost containment strategy”.
He cautioned that the ongoing weak credit environment, in the aftermath of the financial crisis, warrants vigilance on the disbursement of credit and additional provisions. That has been addressed through a significant increase in the run rate of the provisioning charge between the first and second quarter of 2009, which in turn enables the maintenance of a comfortable provisioning buffer, even under a sustained adverse credit environment.
In addition, he said the Group’s “exceptionally comfortable liquidity position, with a loan-to-deposit ratio of 96%, combined with its robust capital base, should enable it to capture effectively any business opportunities as they arise, thus contributing to the Group’s growth prospects and shareholder value creation.”
