Banking, finance, and taxes

National Bank of Greece Reports Profits Again

National Bank of Greece S.A. (NYSE: NBG) is trying to still manage a turnaround. If earnings are a barometer, then the bank could be on the way back up. The question is whether this sort of earnings is a one-off or indicative of more gains to come. Using year-over-year comparisons is not easy because of mergers and because of banking system changes.

In the fourth quarter of 2013, NBG posted a profit of €547 million. Before you get too excited, the earnings include a gain from tax benefits from prior years. That also helped to offset large loan loss provisions. Excluding items, NBG’s fourth-quarter profit was only €16 million. Still, it is a profit, and NBG lost some €81 million just one quarter earlier.

Loss provisions were €388 million in the fourth quarter. Net interest income was listed as €776 million in the fourth quarter. Some additional items are as follows:

  • Net profit for full-year 2013: €809 million for the group, versus losses of €2,140 million in 2012.
  • The group’s Turkish franchise, Finansbank, posted net profit of 439 million, down only 9% on a constant currency basis despite Turkey’s woes.
  • NBG claims to have a pro-forma Core Tier I of 11.2%, as well as Core Tier I ratio of 10.3%.
  • On the BlackRock stress exercise, the capital needs calculated on the basis of the stress tests will be met within a reasonable timeframe, without a share capital increase.
  • Reductions in operating expenses in 2013 topped 8%; retail deposits increased by 14% year on year, posting stabilization in Q4, and lending, before deduction of provisions, decreased by 4% year on year to €46.5 billion.
  • NBG’s loan-to-deposit ratio stood at 90% in December 2013, versus 101% a year earlier.

The news report has been largely ignored by investors. NBG’s ADRs trading in New York were up almost 3% at $5.78 in mid-afternoon trading on Thursday. That gain may sound big, but many major U.S. banks are up around 2% ahead of the U.S. stress tests at the same time. NBG’s adjusted 52-week trading range is $2.85 to $24.70.

Credit Card Companies Are Doing Something Nuts (Sponsor)

We’ve been writing about ways to make, save, and invest money for over 20 years. But some of the cash back credit card rewards today still make our jaws drop. There are $200 cash bonuses, 3% back on gas and groceries, $0 fees, and even some 5% rewards out there right now. For the average American that could mean hundreds, even thousands of dollars on rewards a year.

Don’t miss out on rewards this good, there is no saying how long they’ll last. Click here to see our top picks. 

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.