In the current stressful conditions for the Greek economy, Eurobank EFG shows resistance and implements successfully the priorities of maintaining robust capital and adequate liquidity, strengthening the balance sheet, through increased bad debt provisions, and maintaining pre-provision profits at levels sufficient to cover the negative consequences of recession. The Group is represented in Bulgaria by Postbank.
In the first quarter of 2011 pre-provision income grew to €425m, from €330m in 4Q2010. Excluding the one-off items of €90m, pre-provision income improved by 2% versus the previous quarter and stood at €335m. New Europe performed strongly in 1Q2011 with total net income reached €13m, contributing by 18% the to the overall profitability of the Group.
A one-off collective reserve for securities worth €130m was created, as a precautionary measure, given the tough macroeconomic conditions. During the first three months of 2011, the Group also reduced its exposure to the ECB by ca €1bn, built a contingent liquidity reserve of ca €5bn and is continuously undertaking initiatives to strengthen further its liquidity position.
"During this challenging quarter, our Group, benefiting from the continued trust of our clients and efforts of our employees, demonstrated resilience and adaptability to rapidly evolving conditions. We further strengthened our balance sheet and continued to manage risks effectively. Capitalizing on our strategic initiative in the Polish market, we managed a substantial improvement to our capital adequacy ratios, and created a collective reserve to cover future prospective risks, while, at the same time, we managed to record a profit of €74m", stated Nicholas Nanopoulos, CEO of Eurobank EFG Group. "Despite the challenging conditions, we remain committed to the support of our clients, contributing to the development initiatives of the local economies, and fostering extrovert growth, innovation, and entrepreneurship."