This excerpt taken from the NBG 6-K filed Nov 26, 2008.
Net interest margin remained at 4.25%, the same level as a year previously, despite the rise in interbank rates internationally, intensifying competition in efforts to attract more deposits, the concomitant increase in pricing margins for deposits and the cost of funding more generally.
The performance discussed above, particularly the resilience of interest income, reflects the sound fundamentals of the Group, which serve to shield it from the full impact of the credit crunch that has gripped markets across the globe.
However, the extreme turbulence that swept across money markets in September pushed the Groups interest margin down by 10 basis points in Q3. This trend is not expected to change as long as the interbank market remains dysfunctional and the recent interest rate cuts by the ECB do not mirror the true cost of raising funds.
* Before the one-off 21 million tax payment to the Turkish government as part of a tax imposed on all the banks in Turkey.