Operating income for the first quarter of 2007 amounted to EUR 42.2m, up 0.2% in comparison with the first quarter of 2006. This small increase (+0.2%) is mainly attributable to the adverse effect of non performing loans on the net interest margin evolution. The first quarter 2006 included a positive valuation (1.2m) on financial instruments. Net income from performing clients increased by 8%, including a 15% increase on fees and commissions.
Operating expenses increased by 6.3% to EUR 42.2m in comparison with the first quarter of 2006, mainly due to the opening of 12 new branches between the two periods and the development of new alternative distribution channels (internet banking, mobile sales force, and call centre). A large part of this increase is attributable to staff expenses.
Operating result before provisions for the first quarter 2007 was nil, versus EUR 2.4m for the same period of the previous year.
During the first quarter of 2007, the Bank booked EUR 10.3m which included additional provision on our consumer loans disbursed before the implementation of our new risk policy.
As a consequence, the net Group loss before tax for the first quarter of 2007 amounted to EUR 10.3m.
In terms of activity, the Geniki Group had substantial growth in the retail banking segment. Sales and production continued to increase in comparison with the first quarter of 2006 with 7% on new clients, 18.6% in housing loans 13% in credit cards and 23% in mutual funds. Mortgage loans show a period-on-period increase of 26.7%, and consumer loans 18.2%.
In addition, SMEs and professionals market segments have also achieved a significant growth in comparison with the first quarter 2006 with (+53%) of new clients.
As at 31 March 2007, total loans and advances, net of provisions, show a period-on-period increase of 13.8%, amounting to euro 3 billion.
Total customer deposits and repos, amounting to euro 2.7 billion, shown a period-on-period increase of 14.6%.
The Bank is planning a share capital increase for meeting all regulatory and statutory requirements