Eurobank EFG Net Profit Rises 31% in H1

Eurobank EFG"s consolidated net profit increased by 31% in the first six months of 2007 and reached 416.7 million EUR. Net profit stemming from international activities of the whole Group stood at 21.7 million EUR., whereas net profit from the operations in Bulgaria, Romania, Serbia and Turkey quadrupled and amounted to 42 million EUR, from 9.7 million EUR a year ago. The expansion of the loan portfolio in New Europe was also substantial in the first six months of the current year, with total loans climbing by 109% to 6.2 billion EUR. At the end of the first half 2007, the network of Eurobank EFG in Greece and abroad reached 1400 branches, points of sale and business centres, of which 900 were in New Europe.

Total assets advanced by 28.3% y-o-y and stood at 61.3 billion EUR at the end of June 2007, mainly due to accelerated credit growth. Group total loans expanded by 33.1% y-o-y and amounted to 40.5 billion EUR, with total loans rising by 109% in New Europe. Group Total Deposits expanded by 26.5% y-o-y and amounted to 26.8 billion EUR in the first six months of 2007.

Net interest income increased by 22.3% and totaled 926.8 million EUR. in the six months of 2007. Net interest generated by the bank"s operations in New Europe surged by 91% to 177.5 million EUR, contributing 19.2% to the Group net interest income. At the same time, the net interest margin remained above 3.2%.

Group total revenues increased by 22.6% to 1.3 billion EUR at the end of the first six months of 2007, from 1.1 billion EUR in the respective period of 2006. Fast business expansion in New Europe led revenues from this region to increase substantially by 85% to 258.4 million EUR.

Total operating expenses were up 26.1% at a group level, whereas on a like-for-like basis (excluding acquired banks), Group costs increased by 16.7%. Cost growth was affected by the opening of 115 new branches, business centers and points of sale and investments to strengthen the Group"s presence in New Europe. Nevertheless, the cost-to-income ratio for the Group was 47.4%, whereas for the Greek operations it decreased further to 39% at the end of June 2007.

In Romania, BancPost expanded its network to 242 branches and points of sale and delivered accelerated business growth in loans to corporate and households. The loan portfolio more than doubled at the end of June 2007, with second quarter 2007 balances being 28% up on the first quarter of the current year. The services of the bank in Romania are enhanced through a number of subsidiary companies of Eurobank EFG in the fields of Equity Brokerage, Investment Banking, Leasing, Property Services and Mutual Funds Management.