National Bank of Greece (ADR) (NYSE:NBG) was buoyed as European foreign ministers offered the country a four-month extension to continue negations on a bailout for its debt and austerity measures. In return the country must adhere to a strict set of rules presented by the European Union. The deal is void unless the Greeks submit a list of reforms that it can realistically deliver that are based on the previous agreement. The International Money Fund (IMF), along with the European Central Bank and European Commission will then review that list and make its decision. This is the start of a full and comprehensive review of the Greek debt situation.
Eurozone leaders say they will react by Tuesday and complete the transaction of funds to the Greeks by April. The process involved 19 Eurozone countries that discussed the four-month extension and could be the long-awaited break through the financial community has been hoping for. The announcement firmed up trading for the Euro and also helped Greek bank stocks such as the National Bank of Greece. The stock was up almost 15% after being devalued extensively.
National Bank Of Greece
National Bank of Greece (ADR) (NYSE:NBG) had recently reported earnings and showed some promising numbers. They raised their EPS significantly and that continued a streak of positive earnings growth. They showed a profit of $1.98 per share last quarter after suffering through a -$27.80 EPS the prior year. Analysts though have shied away from the sector as the bailout looks like it may affect profits going forward. They are predicting a 71% earnings contraction that will take the current EPS to around 56 cents per share. The company experienced a revenue decline during the period but it was much softer than the rest of the sector.
After taking a downturn during the negotiations of the bailout, the news pushed the stock right back to support which is very healthy. The momentum is strong and support should hold barring any unforeseen announcements the deal is a no-go.
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