BoG: Greek banks’ NPEs ease slightly in the third quarter of 2016

Non-performing exposures by Greek banks eased slightly in the third quarter of 2016, but banks continue facing significant difficulties in the management of NPEs, the Bank of Greece said in a report released on Thursday.

The central bank, in a report on the Greek Financial System in the third quarter of 2016, said that the value of NPEs totaled 107.6 billion euros, with the rate of non-performing exposure to total exposure at 45.2 pct. At the end of the first half of the year, NPEs amounted at 108.4 billion euros, up 0.4 pct from the end of 2015.

However, the rate of NPEs/total exposure in the first half of 2016 was 45.1 pct, up from 44.2 pct at the end of 2015, reflecting a reduction in performing loans. Bank credit shrank by 1.6 pct in the first half of 2016, while the value of performing loans fell by 3.2 pct compared with the end of 2015. The sectors of restaurant (76.3 pct), agriculture (62.7 pct), telecommunications/IT/media (58.4 pct), manufacturing 53.2 pct) and construction (52.8 pct) recorded the highest percentage rate of NPEs, while energy (3.7 pct), civil administration (7.0 pct), financial enterprises (27 pct) and shipping (30.9 pct) the lowest rates.

The report said that 70 pct of total NPEs have a delay of more than one year (in mortgage loans the rate was 75 pct, corporate loans 68 pct and consumer loans 81 pct).