National Bank makes NPE shrinking target in Q3

Greece's second largest lender by assets National Bank (NBG) was loss-making in July-to-September as weak net interest income and trading losses offset a decline in bad-debt provisions.

NBG, 40 percent owned by the country's bank rescue fund HFSF, on Wednesday reported a net loss from continued operations of 44 million euros versus a net loss of 52 million euros in the second quarter.

Greek banks are still struggling with problem loan portfolios after a protracted recession pushed unemployment to record highs, making it hard for borrowers to service debts.

Entering the 2008 global financial crisis with bad loans, or nonperforming exposures (NPEs), of 14.5 billion euros - about 5.5 percent of their loan books - banks saw bad debts climb to 106.9 billion euros, or 51 percent, last year.

They have agreed with regulators to cut the level to 66.7 billion euros by...