In a press release, NBG said that "excluding impairment losses on GGBs, prompted by the PSI initiative (€1,339 million after tax), compared with profit of €146 million in H1.10, due to the persistence of high provisions, which amounted to €822 million (up by +27 percent yoy), as well as the exceptionally adverse economic climate in Greece."
According the bank, "...In this extremely stressed period, the NBG Group succeeded in growing net income and keeping its capital base robust (Tier I CAD ratio: 11.2 percent), while fortifying its balance sheet with higher provisions.
"At the same time, operating expenses declined by -3 percent (yoy) at Group level, mainly due
to the drastic reduction in operating costs in Greece (down -10 percent yoy), as well as in SE
Europe1 (down -4 percent yoy).
"In the first half of the year the NBG Group, although impacted by the decline in deposits, which intensified in Greece during Q2.11, nevertheless managed to increase its market share of savings deposits to 34.1 percent and sustain its market share of time deposits at 15.3 percent in Greece. It is noteworthy that, after the EU summit on July 21, domestic deposits have gradually rebounded, fully reversing the decline suffered in the first weeks of July.
"... Turkey saw a significant increase in deposits (up +14 percent since end-2010) while SE Europe also posted an improvement (up +2 percent since the beginning of the year). The Group’s loan-to-deposit ratio stood at the healthy level of 110 percent, while the ratio for Greece stood at 104 percent."
In terms of write-downs, NBG said that "the Q2 results were burdened by write-downs of €1,645 million before tax (€1,339 after tax) in the value of Greek Government bonds held by the Bank. This provision derives from the PSI initiative, as described in the terms and conditions stated in the expression of interest dated 25/08/2011. Before performing the write-downs, the book value of the bonds held by NBG and eligible for inclusion in the bond swap plan amounted to €9 billion."