ATHENS, Feb 15 (Reuters) - Geniki Bank GHBr.AT, majority-owned by France’s Societe Generale (SOGN.PA), said on Tuesday its losses more than tripled last year as Greece’s economic woes caused a jump in bad debts.
The bank, which was taken over by SocGen in 2004 and is being restructured to compete with larger Greek lenders, lost 411 million euros ($555.1 million) in 2010, compared with a loss of 109.5 million in 2009.
“A significant deterioration of the economic environment affected the quality of our loan portfolio,” the bank said in a statement. Greek GDP shrank by 4.5 percent last year following austerity measures under an EU/IMF bailout. [ID:nLDE71E1AQ]
Geniki’s loan-loss provisions jumped to 415.2 million euros from 139.6 million in 2009. The lender’s loan portfolio shrank 11.5 percent to 3.5 billion euros.
Societe Generale’s holding in Geniki rose to 88.4 from 53.9 percent in November last year after a 340 million euro cash call to boost the Greek lender’s capital.
Societe Generale is not the only French lender that is in trouble in Greece. Emporiki Bank, the local unit of Credit Agricole (CAGR.PA), reported last week an annual loss of 874 million euros for 2010, up 50 percent year-on-year. [ID:nLDE71D0BO] ($1=.7404 Euro) (Reporting by Harry Papachristou; Editing by Jon Loades-Carter)