Historic losses announced by Greek banks

Historic losses for 2011 were announced today by Greek banks, mainly because of the large depreciation of bonds by the recent “haircut”. It is estimated that these losses will reach 25 bil. euro, excluding the impact of the BlackRock evaluation.

According to protothema.gr information, the issuing of results from the Postal Savings Bank, which is expected eventually to join the arrangement for support from the EFSF, has received an extension. Similar efforts are being made by Cypriot banks’ administrations.

The announcement of results is underway.

National Bank

Losses of 11.7 billion from the bond exchange program were announced by National Bank for 2011, compared to 406million profit in 2010. The total losses of the Group amounted to 12.3 billion euros, including repayments of up to 1.1 billion (after taxes) of all claims to the Greek public sector.

The losses before the bonds reduction and other costs amounted to 242 million. Meanwhile, despite the loss in Greece, the profitability of subsidiaries amounted to 368 million euros.

Alpha Bank

Alpha Bank recorded total losses of up to 3.8 billion euros, against losses of 535 million in 2010. Results include both the losses from Greek bonds, and loans guaranteed by the Greek state, worth 2.1 billion. According to its administration, Alpha Bank continued its policy of deleveraging the balance sheet so that its portfolio reached 49 billion euros (1.8-billion annual reduction).

Piraeus Bank.

Piraeus Bank’s losses from the PSI amounted to 5.9 billion. Total losses for the bank amounted to 6.6 billion, which shows negative equity of 1.94 billion.

Specifically, as stated in the announcement by the Piraeus Bank Group, following a decision of its Board of Directors on 07.03.12 the bank participated in the PSI with the total of eligible OED and loans in its possession, the nominal value of which amounted to 7.7 billion.

In this context, the total recognized reduction during 2011, associated with the PSI, amounted to 5.9 billion (1.1 billion in the 9 months of 2011 and 4.8 billion for the fourth quarter of 2011).

Attica Bank.

Losses of 249 million were announced last year by Attica bank.

Eurobank

Losses of 4.6 billion euros from the PSI were shown by Eurobank for 2011. Total damages amounted to 5.5 billion, as adjustments of 856 million were included (they had already been calculated as they affect regulatory capital given the equity valuation at current prices and the reduction of goodwill of foreign investments). The operating results of the bank amounted to -29 million in 2011, despite the deep recession of the Greek economy.

The total capital amounted to 875 million after the full impact of the PSI. The completion of the sale of Polbank EFG and Eurobank Tekfen improved liquidity by approximately 3.5 billion and is equivalent to a strengthening of basic main capital by 1bn euros, including the repurchase of hybrid securities and subordinated securities during the first quarter of 2012. Despite the crisis, the stabilization of its net operating income before provisions amounted to 1.2 billion euros.