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MPB: Forecasts for profits of €580m

12/02/2008 10:28
Analysts expect that Marfin Popular Bank will increase its profits in 2007. According to a consensus poll taken by Thomson Financial News of seven leading analysts, 12-month group net profits are seen coming in between 543-620 mln eur, up from 245.4 mln eur in 2006.

According to foreign and Greek analysts, the rise in the Group’s net profit is attributable to the robust net interest income from lending volumes, solid fees and commissions and good cost control.

Net interest income for the 12-month period is forecast to rise 36 pct year-on-year to a consensus median of 665 mln eur, with forecasts ranging between 650-684 mln eur.

Full-year fee and commission income is expected to climb 56 pct year-on-year higher to a forecast median of 314 mln eur, with forecasts ranging between 308-320 mln eur.

According to the analysts, the provisions for bad debts will be lower and the asset quality will be improved.

In the fourth quarter, the bank expects capital gains of €43 million from the sale of the Bank of Cyprus stake.

“Our strong outlook for Marfin Popular Bank is driven partly by the immature and expanding branch network in Greece, and the growing potential of Cyprus as an international business hub. The new international initiatives in emerging Europe, and revenue synergies from investment holding company Marfin Investment Group (MIG) should also contribute”, the analysts said.

All analysts outlined that the results for 2006 are pro forma and comparability is, therefore, limited.

Marfin Popular Bank will announce its results on Thursday, February 14. In the first nine months of the year the bank generated profits of €483.2 million (+141%) compared to the pro forma results of 2006. According to its business plan, it expects profits of €580 million for 2007, €617 million for 2008 and €788 million for 2009.

The share closed at €6.62 on Monday, which is 41% lower than the €11.18 in late October.