National Bank of Greece 'posts substantial first half losses'

31 August 2011

Substantial losses for the first half of 2011 have been posted by National Bank of Greece (NBG).

The lender - which is the largest and oldest commercial institute of its type in the country, having been founded in 1841 - reported a dip of €1.31 billion ($1.9 billion) over the six month period, a fall that comes partly as a result of its deal with international creditors that shaved 21 per cent from its government bondholdings, the Financial Times reports.

Apostolos Tamvakakis, chief executive of NBG, said the bank would not be pursuing an immediate increase of capital, explaining the lender will "continue its policy of further enhancing its capital base through efficient asset and liability management and maintaining satisfactory liquidity".

Banks from Greece are also expected to contribute significantly to the government's debt swap and rollover scheme as part of the European Union's second bailout of the country - which is likely to see NBG's core tier one capital ratio tumble by around 200 basis points as a result.

By Claire Archer

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