Banca Românească, the domestic subsidiary of National Bank ofGreece (NBG) Greek financial group, in the second quarter derivednet income worth 2m euros, less than half the gain posted in thesimilar period of 2009, as it had to pay more to get funding.Moreover, provision expenses stayed at a high level.
In the first quarter, the bank had reached 12m-euro profit. Owingto the better first quarter figure, Banca Românească ended thefirst half with 14m-euro profit, up 12% from the first half of2009, according to the data NBG published in Athens.
"The second quarter income is much lower than the one reached inthe first three months of the year because of the adverseinternational and domestic conditions, which translated into anincrease of funding costs by at least 100 basis points," bank'smanagement says.
Outlooks for the second half of the year are moderate as economicactivity is not picking up.
"We're not expecting significant profitability changes in thesecond half of the year, given the domestic and internationaleconomic climate," states the bank's management.
Thus, quarterly profit is likely to remain in the two-three millioneuro-range.
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