Eurobank CEO Nicholas Nanopoulos said Greece’s dire fiscal and economic condition made painful decisions necessary in order to prevent a dramatic deterioration of the country’s situation. For Eurobank EFG, as well as for all Greek banks, fully supporting the PSI initiative was the appropriate decision to take.
"Evidently, this decision came at a very heavy cost for our shareholders, adversely impacting our capital position and the Bank’s financial results. The recapitalization process will cover capital losses from the PSI and lay the foundations for a new era of stability, confidence and credibility for Greek banks," Nanopoulos said.
"Maintaining a solid capital position has always been a top priority for our Bank. To that aim, we have recently taken important steps to further strengthen organically our capital base, through a series of specific initiatives, which improve substantially our capital base and liquidity. Furthermore, during 2011, we managed to achieve satisfactory operating results, demonstrating our ability to face up to the unprecedented challenges of our times."
Core operating income totaled €2.4bn, down by 5.8% compared to €2.5bn during the corresponding period previous year, which represents 97% of Eurobank EFG total operating income.
For the fiscal year 2011, its net interest income declined marginally €63m to €2bn compared to the net interest income of 2010.
The bank said that its pre provision income touched €1.3bn in 2011, while core pre provision income declined by 5% to €1.2bn, during the same period a year ago.
Total net loss touched €5.5bn, of which €4.6bn comes from PSI and €856m from one-off valuation and goodwill impairment losses, which had already affected regulatory capital.
Southeast Europe operations result were reasonably good as its core profit rose by 83.5% to €49m year-over- year, while net profit reached €60m.
