The Marfin Popular Bank’s core banking pre-provision profit rose by 44% to 143.8 million euro in the first half of 2010, according to the Bank’s financial results for the first half of 2010.
A press release issued by the Marfin Popular Bank says that total revenues rose by 2%, while deposits increased by 1.4 billion and loans by 1.6 billion.
Group net profit attributable to shareholders amounted to 60.8 million in 1H 2010.
“Core banking pre-provision profit rose 44% y/y to 143.8 million in 1H 2010, demonstrating robust organic growth, as well as the Group’s capacity to successfully overcome adverse economic conditions”, the press release says.
The Bank notes that net interest income rose 24% y/y to 355.1 million in 1H 2010, “reflecting the successful implementation of the Group’s net interest margin (NIM) expansion policy, which led net interest margin 26 basis points higher to 1.80% in 1H 2010”.
“The stabilization of NIM in the first two quarters of 2010 was achieved in a highly competitive environment, mainly due to significant deposit outflows from the Greek banking system”, it is added.
Moreover, the Bank says that “in this especially adverse environment, the Group succeeded in raising net interest income to 178.7 million in 2Q 2010, 1.2% higher q/q”.
Fee and commission income remained stable on an annual basis to 102.4 million.
Total revenues amounted to 519.3 million in 1H 2010, 2% higher y/y, despite a 49% y/y drop in financial and other income in 1H 2010, reflecting the ongoing improvement in the quality of Group’s revenues.
Deposits reached 25.3 billion as of 30 June 2010, increasing by 1.4 billion since 31 December 2009.
International Business Banking (IBB) deposits also posted a significant increase of 30% y/y and reached 5.7 billion.
“The fact that the aforementioned improvement was achieved in an environment characterized by significant outflows from the entire Greek banking system demonstrates the Group’s robust positioning at both geographical and product level”, the press release says.
The Bank’s loan book growth rate was 8% y/y in Greece, considerably higher compared with the Greek system lending growth in 1H 2010. In Cyprus, loan book growth was 16% y/y, twice as high as the system growth rate.
Commenting on the financial results for the first half 2010, Efthimios Bouloutas, Chief Executive Officer of Marfin Popular Bank Group, said that “the Group’s strong operating performance during 1H 2010 reflects the success of our strategy established on both prudent balance sheet management and rigorous risk management culture, in conjunction with strong focus on client service”.
He concluded by saying that “in this exceptionally challenging business environment, the Group succeeded to further increase its operating profitability, while maintaining its solid capital and comfortable liquidity position”.
