MUMBAI (Thomson Financial) - Fitch Ratings said Greece's major banks should
be well placed to continue posting solid results in 2008 despite tighter funding
conditions and some indications for slower loan growth in Greece and
South-Eastern European.
"Most major Greek banks have, in recent years, benefited from a buoyant
domestic market and have built up solid franchises in fast-growing neighbouring
economies, which should underpin further strong balance sheet growth and support
the banks' profitability," Fitch said.
In a report titled, Major Greek Banks: Annual Review and Outlook, Fitch
said National Bank of Greece, Efg Eurobank Ergasias, Alpha Bank, Piraeus Bank,
Emporiki Bank of Greece S.A. and Agricultural Bank of Greece (ATEbank), were
able to maintain or improve their profitability in 2007, with improvements
largely driven by strong loan growth -- around 30 percent on aggregate -- stable
or even slightly improving net interest margins and progress in generating fee
income.
Strong revenue generation in recent years allowed the banks to continue
investing in distribution capacity in Greece and abroad and compensated for a
significant increase in operating expenses of around 26 percent on aggregate in
2007.
Asset quality improved as a result of improved risk management systems and
underwriting criteria, as well as significant write-offs and high loan growth,
Fitch noted.
TFN.newsdesk@thomsonreuters.com
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