Fokion Karavias

Greece's third-largest lender Eurobank on Thursday reported lower full-year 2018 net profit as operating income declined, but said it was on track to deliver on a plan to transform its business by year-end.

The planned merger between the Eurobank Group and Grivalia Properties that was announced on Monday is aimed at the full streamlining of Greece's third-largest lender through the drastic reduction of its portfolio of nonperforming exposures from 39 percent of all loans at end-September to 15 percent at end-2019 and below 10 percent in 2021.

Eurobank is confident of beating this year's sour loan reduction target agreed with European Central Bank supervisors and plans to make further progress by 2021, the chief executive of Greece's third largest lender said on Monday.

Eurobank, Greece’s third largest lender, said on Thursday it will sell a 1,5 billion Euro pool of non-performing loans to Swedish hedge fund Intrum, as part of efforts to reduce its load of sour debt and meet targets agreed with regulators.

Eurobank, Greece's third largest lender, said on Thursday it will sell a 1.5-billion-euro pool of non-performing loans to Sweden's Intrum, as part of efforts to reduce its load of sour debt and meet targets agreed with regulators.

The European Investment Bank (EIB) and Eurobank have signed a EUR 150 million loan agreement to finance eligible projects undertaken by small and medium-sized enterprises and midcaps operating in Greece.

Eurobank, Greece's third-largest lender, was profitable in the first quarter of the year, its Chief Executive Fokion Karavias told Reuters on Thursday.

The bank will release first-quarter results on May 19. Its net profit stood at 38.3 million euros in the fourth quarter last year.

Eurobank was profitable for a fourth straight quarter in October-December but earnings shrank despite slightly lower provisions for bad debt.

The third-largest Greek lender by assets, in which the national bank rescue fund owns a 2.4 percent stake, on Wednesday reported net earnings of 38.3 million euros, down 55 percent from 85 million in the third quarter.

Eurobank was profitable for a third straight quarter in July-September as lower provisions for bad debt helped to boost earnings 85 percent from the previous quarter.

By Eleni Chrepa

Greece faces another week of hurdles before the March 9 meeting of euro-region finance ministers in Brussels, where they will evaluate the government's list of proposed measures aimed at keeping aid flowing.