Cuts on banks as Greek economy

Both the National Bank of Greece SA and Alpha Bank SA were cut to "hold" from "buy" at Deutsche Bank AG yesterday after the German firm cited concerns that its European counterpart's economic climate may worsen.

According to a report published by Deutsche Bank analysts today, the belief is that the market's attention will quickly turn to Greece's central risk, for both 2010 and over the long term, "and that is a more prolonged and more severe than previously anticipated economic declaration," they write.

The brokerage cut its 2010 and 2011 earnings estimates for National Bank, Alpha Bank and EFG Eurobank Ergasias SA by 15 percent to 34 percent and also lowered its share-price forecasts for the lenders, saying "earnings normalisation will take longer than anticipated."

More information is expected later this week.

Matthew Buttell

Matt Buttell graduated from Bath Spa University in 2006. Since then he has written for several publications, before moving to the web. He now writes solely for the internet, continuing to cover key business issues while managing his own personal blog.

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