Nov. 7 (Bloomberg) -- Komercni Banka AS, the Czech unit of France’s Societe Generale SA, may say third-quarter profit almost halved on losses from Greek government bonds holdings.
Net income for the three months ended Sept. 30 probably was 1.87 billion koruna ($102 million) compared with 3.48 billion koruna a year earlier, according to the median estimate of four analysts in a Bloomberg News survey. The Prague-based lender is due to report results tomorrow.
Komercni, which already took a charge on Greek sovereign bonds in the previous quarter, still had about 5 billion koruna in Greek state papers, Chief Finance Officer Pavel Cejka told newspaper Lidove Noviny on Sept. 22.
The lender may take an impairment charge of about 1.79 billion koruna on Greek state papers, which would reduce Komercni’s Greek holdings by 50 percent, J&T analyst Milan Lavicka wrote in a note to clients. However, it can’t be ruled out that the lender will write down Greek notes only in the fourth quarter, Lavicka said.
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