Eurobank expects 'new Europe' profit boost
* Sees foreign operations doubling profitability this year
* In no rush to buy back preferred shares from government
* Sale of Polbank to boost capital adequacy by 150 bps
ATHENS, Jan 10 (Reuters) - EFG Eurobank (EFGr.AT), Greece's second-largest lender, expects
profit from its operations in south east and central Europe to double this year, its chief executive said on Monday.
Greek banks ventured into the relatively underbanked Balkan markets to secure growth, but the difficulties brought on by the country's debt crisis have led some to reduce stakes abroad to raise cash and beef up capital adequacy.
"We remain profitable with a positive and growing trend in new Europe. We estimate profit from new Europe will double (this year)," CEO Nick Nanopoulos told reporters.
Outside Greece, Eurobank has operations in Romania, Turkey, Bulgaria, Serbia, Poland, Cyprus and Ukraine. Profit from these reached 19 million euros in the first nine months of 2010.
Overall, Eurobank's nine-month net profit fell 78.5 percent to 60 million, broadly in line with consensus. [ID:nLDE6AS1AG]
Eurobank repeated it had no plans for a rights issue, unlike other Greek banks that have opted for cash calls to strengthen balance sheets and regain access to wholesale funding.
POLBANK SALE
Eurobank is instead in talks to sell a majority stake in Polish unit Polbank to a strategic partner.
"We project an organic increase in our capital adequacy.
The sale of Polbank and other actions, including better risk management, can lead to an improvement in our capital adequacy ratio of about 150 basis points," CEO Nanopoulos said.
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UPDATE 1-Eurobank expects new Europe profit boost | Reuters