Finansbank

The Greek stock exchange’s general index gave up 0.85 percent on Thursday, falling to 1,167.51 points, as European bourses also headed south on worries of an escalation in the conflict in Ukraine.

Fitch Ratings said in a new report on Tuesday that second-tier foreign-owned Turkish banks are well positioned to face the challenges inherent in Turkey’s volatile operating environment.

Finansbank, owned by National Bank of Greece (NBG), enjoys the highest net interest margin among the country’s four foreign-owned lenders, reflecting a business mix more focused on retail banking.

Greece’s biggest lender by assets, National Bank (NBG), reported higher-than-expected profit in the first quarter, helped by lower funding costs, its Turkish unit Finansbank and reduced provisions for bad loans.

The group posted net earnings of 181 million euros in January to March, its sixth straight profitable quarter.

National Bank of Greece plans to sell a minority stake in Istanbul-based Finansbank as part of plans to boost capital.

The lender, based in Athens, will submit a restructuring plan later this year which includes the sale of a “significant” minority stake in Finansbank, according to a statement posted on its website.

By Yiannis Papadoyiannis

National Bank sources made clear on Wednesday that the upcoming 2.5-billion-euro share capital increase is to ensure that the group retains its majority stake in Turkish subsidiary Finansbank and its presence in the major market of Turkey.

By Yiannis Papadoyiannis

After Alpha, Piraeus and Eurobank, National Bank of Greece is also preparing to cover its additional capital requirements, as determined by the Bank of Greece (BoG) stress test. However National is not in favor of a share increase, opting instead for the sale of assets and subsidiaries.