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EARNINGS POLL-Eurobank H1 net profit seen down 61 pct

Published 08/26/2009, 07:22 AM
Updated 08/26/2009, 07:24 AM
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* Results due Aug 27 after 1430 GMT

* H1 net profit seen down 61 percent to 169.5 million euros

* Q2 profit seen up 9.5 percent q/q to 88.6 million euros

ATHENS, Aug 26 (Reuters) - EFG Eurobank, Greece's second-largest bank, is seen reporting a 61 percent fall in first-half net profit, on higher loan-loss provisions and lower volumes at home and in the Balkans.

The group, also present in Romania, Turkey, Bulgaria, Serbia, Poland and Ukraine, is expected to show improved performance in the second quarter, with earnings rising 9.5 percent quarter-on-quarter on stronger trading income and net interest margins.

Analysts polled by Reuters expect the bank to post first-half net profit of 169.5 million euros ($242 million) on average, with forecasts ranging from 162 to 182 million.

An economic downturn at home and the Balkans, where Greek banks expanded for growth, weighed on volumes while a deposit war to attract funds squeezed net interest margins in the first quarter. Competition for deposits eased in the second quarter.

"We expect Eurobank to deliver a decent set of numbers, given the challenging environment," UBS said in a note. "We expect revenues to be 8 percent higher on the quarter, driven by net interest income and fees. Improved trading income of 76 million euros from Greek government bonds should also provide some support."

Eurobank shares are up 89 percent since the start of the year, outperforming the Greek stock market's 40 percent gain. They trade 17 times estimated 2009 earnings versus a multiple of 18 for European peers, according to Reuters Estimates.

Following is a summary of analyst forecasts: **************************************************************

H1 Net profit H1 NII Q2 Net profit

(in euro million)

Average 169.5 1,140 88.6

Median 169.0 1,120 88.0

Highest 181.9 1,210 100.9

Lowest 162.0 1,120 81.0

No. of forecasts 7 8 8

H1/Q2 2008 438.0 1,156 221.0

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Forecasts by: Citigroup, Chevreux, HSBC, UBS, Kappa Securities, Piraeus Securities, Proton Bank, Investment Bank of Greece (Reporting by Lefteris Papadimas; Editing by Rupert Winchester)

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