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KBW on MPB profits

22/08/2008 13:57
According to KBW, net profit of Marfin Popular Bank is expected to reach €118 million in the second quarter of the year. “The market will focus on margins and the recovery from the short-term negative impact from EMU entry by repricing loans at higher rates”.

“Overall, we expect NII to grow 9% QoQ and YoY, driven by some improvement in Cypriot margins and strong lending growth of 42% YoY, partially offset by still weak market-related revenues and continued cost growth from business expansion”, the report said.

“Marfin shares have underperformed European banks by 29% YTD, so we think the downgrades to consensus estimates have largely been priced in. The stock is the cheapest in the Hellenic space, trading at 5.5x 2009E, a 24% discount to European banks – hence our Outperform rating”, it added.

The EPS is expected to reach €0.59 in 2008 and €0.80 in 2009. The net profits are estimated at €538 million in 2008 and €663 million in 2009.

The TP is €6.8 with outperform recommendation.

Marfin will announce its six-month results on August 28.