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ATEbank's 9-month profit falls 1.6 pct

Thu Nov 12, 2009 11:06am EST

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* Nine-month net profit shrinks to 82.4 mln euros

* Provisions increase, sugar unit suffers losses

* Lending income rises on falling interest rates

ATHENS, Nov 12 (Reuters) - ATEbank (AGBr.AT), Greece's sixth-largest lender, said on Thursday its nine-month net profit fell 1.6 percent to 82.4 million euros ($123.6 million) due to higher provisions and losses from its Hellenic Sugar unit.

Provisions more than tripled year-on-year to 241 million euros, the bank said as the non-performing loans ratio deteriorated to 7.3 percent from 6.9 percent over the same period in 2008.

"ATEbank booked a further 92.1 million euros impairment charges on loans in Q3," the lender said in a statement.

Furthermore, operating profit was hit by a 30 million euros loss from the state-controlled lender's Hellenic Sugar unit.

But revenue from lending grew, with net interest income expanding 15.5 percent to 545.9 million euros.

"(This was) mainly due to the sustained sound performance of interest income from loans (plus 10.3 percent y-o-y) and the significant decrease of interest expenses by 17.1 percent, as a result of the sharp drop in deposit interest rates," it said. ($1=.6668 euros) (Reporting by Harry Papachristou; Editing by Greg Mahlich)



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