* H1 group net profit falls to 128 million euros
* H1 net interest income down 5 percent to 528 million euros
* Q2 profit up 48 percent q/q to 76 million euros, above forecasts
(Adds chairman comment, details)
ATHENS, Aug 26 (Reuters) - Piraeus Bank, Greece's fourth-largest lender, on Wednesday beat analysts' forecasts with a 55 percent fall in first-half net profit to 128 million euros ($182 million) on slower loan growth and higher provisions.
The average forecast in a Reuters poll of analysts was for a net profit of 115 million euros, with estimates ranging from 107 to 124 million.
Quarter-on-quarter, Piraeus grew net earnings 48 percent to 76 million euros in the three months to June, also above the average forecast of 63.6 million.
"Conditions in the world economy continue to be difficult with significant signs, however, of a gradual recovery and normalisation in markets from the second quarter," Piraeus Chairman Michael Sallas said in a statement.
"The group's liquidity reached historically high levels, non-performing loans rose but at a slowing pace to 4.5 percent," he said.
Piraeus, also present in Romania, Bulgaria, Serbia, Albania, Cyprus, Egypt, Ukraine and the United States, said net interest income in the first half fell 5 percent to 528 million euros. Its net interest margin improved to 2.6 from 2.4 percent in the first quarter.
A weaker macroeconomic backdrop at home and in the Balkans, where Greek banks including Piraeus have expanded, weighed on volume growth while a deposit war during the first quarter put net interest income under pressure.
Competition for deposits eased in the second quarter with cheap liquidity provided by the European Central Bank taking some pressure off net interest margins.
Piraeus said its loan portfolio expanded at an annual 5 percent pace to 38.3 billion euros at the end of June. Loan-loss provisions rose to 207 million euros versus 83 million in the same period in 2008.
Piraeus Bank shares are up 73.9 percent so far this year, outperforming the Greek equity market's 40 percent advance. They trade at about 16 times estimated 2009 earnings versus a multiple of 17 for European peers. (Reporting by George Georgiopoulos; Editing by Jon Loades-Carter)