NBG » Topics » Quality of the loan book

This excerpt taken from the NBG 6-K filed Jan 21, 2009.

Quality of the loan book

 

The worsening macroeconomic performance and shrinking liquidity in the economy have not had a negative impact on the quality of the loan book; on the contrary, there has been a marginal improvement. The NPL ratio now stands at 3.3%, compared with 3.4% at the end of 2007.

 

The Groups cautious and consistent provisions policy throughout the rising cycle means that it is today in an advantageous position as regards the level of provisions, which cover over 75% of NPLs, before taking into consideration the value of collateral. Specifically:

 

·                           In Greece, NPLs stood at 2.8%. The provisions coverage ratio has remained consistently over 75%.

 

·                           In SE Europe, NPLs (excluding the legacy loans of Vojvodjanska) stood at 2.6%, and have a coverage ratio of 77%.

 

·                           NPLs at Finansbank stand at about 3.2% of its total loan book, and are covered 80% by provisions.

 

Under current conditions, it is particularly important that the Group’s loan book is concentrated in low-risk sectors such as housing credit, and financing to large corporations and the public sector, which together account for 85% of total Group lending. Likewise, the corporate loan portfolio of the Group is well dispersed across industrial sectors, thus averting concentration in sectors that may be severely affected by the global economic crisis, such as shipping where the Group’s exposure is just €1.9bn, or a mere 3% of the total loan book.

 

3



 

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki