National Bank of Greece Q1 profits up 39%, beats forecasts

National Bank of Greece, the country’s biggest lender, reported a 39% year-on-year rise in first quarter profit on Thursday, with its Turkish subsidiary Finansbank making up for weak business at home.
NBG reported net profit of 157 mln euros ($222 mln), more than analysts polled by Reuters had expected.
Earnings at its Turkish unit Finansbank grew 28% to 151 mln euros, NBG said.
"Despite the satisfactory absorption of the impact of the economic crisis and the strong shielding of our capital, challenges remain significant," NBG Chief Executive Apostolos Tamvakakis said in a statement.
"NBG plans to take new initiatives to strengthen the Greek banking system and tackle the economic crisis," he said.
With the Greek economy in its third straight year of recession, it was tough for the country's banks to make money, leading to a squeeze in deposit spreads, weak loan volumes and higher provisions.
Greek lenders have become dependent on the European Central Bank for liquidity as access to interbank funding remains mostly shut due to sovereign debt concerns.
NBG, whose all-share offer for peer Alpha Bank was rejected in February this year, said provisions for non-performing loans rose 21% year-on-year to 381 mln euros.
The group, also present in Romania, Bulgaria, Serbia and Cyprus, reduced its funding from the ECB by 3.2 bln euros in the first quarter.