The figure is better than recent downgraded expectations, but still weak. Piraeus will take extra provisions this year, of c Grd4bn-Grd5bn. It is the third bank to announce extra provisions after Commercial and General. We expect all three will need further provisioning in coming years. The other majors, even though they have a better portfolio, may also need further provisioning in 2001.
Consolidated performance is likely to be weaker, due to the poor stock market results.
On EPS, at c. Grd380, it is still much lower than 1999 s Grd440. Reports indicate Interamerican Life PBT reached Grd17.5bn, below expectations. The drop, from Grd44bn in 1999 is due to stock market conditions, which reduced investment income. Life insurance premia reached c. Grd108bn, compared to Grd112bn in 1999. The drop in profits was already evident in 9-month report.