National Bank of Greece (NBG +3.7%) posts a H1 profit of €344M vs. a loss of €1.9B a year ago. After adjustments, H1 profit was €312M and Q2 operating income covered provisions for the first time in more than 2 years.
Operating costs in Greece fell 6%, with a 12% reduction in staff expenses. Operating expenses are now 23% lower than in 2010.
Provisions of €853M fell from €1.2B a year ago. Provisions foot to 56% of loan impairments, the highest among Greek lenders.
Liquidity improves with group deposits up 10%, including an 11% rise in Greece. Eurosystem funding reduced by €5.4B since the start of the year.
Capital ratio of 9.2%.