ATHENS--Two of Greece's largest lenders, Piraeus Bank and Alpha
Bank on Thursday reported they increasingly relied on funding from
the European Central Bank, amidst continuing deposit outflows
stemming from the country's political and economic uncertainty.
Piraeus Bank SA, Greece's second largest lender by assets,
reported a larger-than-expected fourth-quarter net loss, as it
raised loan provision charges to boost its coverage ratio.
For the three months to December, the bank said its net loss
totaled 332 million euros ($351.5 million), on loan impairment
charges of EUR519 million, compared with a net loss of EUR1.5
billion in the third quarter.
The lender also nearly doubled its reliance on the Eurosystem in
the fourth quarter to EUR8.4 billion from EUR4.6 billion in the
third quarter.
Greek banks have been hit hard by the country's protracted
financial crisis and are being squeezed by both a rise in bad
loans, due to Greece's six-year long recession, and a greatly
shrunken deposit base as savers have either drawn down their
accounts or else sent their money abroad concerned over the
stability of the banking system.
This trend has picked up in recent months amidst concerns over
the country's future in the single currency and the health of
Greece's financial system. Bank officials say deposit outflows
peaked around February 20, when Greece made an agreement with
European peers to extend its bailout agreement. Outflows have
continued in recent days, but at a slower pace.
The smallest of the country's top four lenders, Alpha Bank,
reported a net loss of EUR440.2 million, widening from a loss of
EUR156.9 million in the previous quarter. Like others in the
sector, Alpha Bank will concentrate on protecting its capital and
liquidity buffers this year.
"Our efforts in 2015 will focus on the preservation of capital
by further improving operating performance and managing actively
our asset quality, on the maintenance of adequate liquidity buffers
and on further supporting our clients to promote their plans and
service their debts," said Alpha Bank Chief Executive Demetrios
Mantzounis.
Total impairment losses for the lender reached EUR772.6 million
as one in three loans ranks as non performing, the bank added.
Write to Stelios Bouras at stelios.bouras@wsj.com and Nektaria
Stamouli at nektaria.stamouli@wsj.com
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