NEW YORK (TheStreet) -- Shares of the National Bank of Greece (NBG) are declining by 7.53% to $1.35 in mid-afternoon trading on Thursday, following reports that Greece will miss Friday's scheduled 300 million euro loan payment to the International Monetary Fund.
The IMF said that Greece has requested that its four debt payments be combined into one large 1.6 billion euro payment that will be due at the end of June.
Greece requested the debt consolidation as the country believes it will have a difficult time "making multiple payments in a short period," IMF spokesperson Gerry Rice told USA Today.
The request followed yesterday's failed meeting between Greece and its creditors. The two entities have been embroiled in negotiations regarding a bailout package for the country for months.
Greece's international creditors have to okay a reform package in order for the much needed bailout loans to be dispersed, USA Today noted, adding that without the money Greece is faced with the possibility of bankruptcy.
Separately, TheStreet Ratings team rates NATIONAL BANK OF GREECE as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate NATIONAL BANK OF GREECE (NBG) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity and generally disappointing historical performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- NATIONAL BANK OF GREECE has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern earnings per share over the past two years. During the past fiscal year, NATIONAL BANK OF GREECE reported lower earnings of $0.15 versus $1.98 in the prior year.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Commercial Banks industry. The net income has significantly decreased by 284.9% when compared to the same quarter one year ago, falling from $760.10 million to -$1,405.19 million.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Commercial Banks industry and the overall market on the basis of return on equity, NATIONAL BANK OF GREECE underperformed against that of the industry average and is significantly less than that of the S&P 500.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 54.52%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 190.90% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- NBG, with its decline in revenue, underperformed when compared the industry average of 0.3%. Since the same quarter one year prior, revenues fell by 23.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- You can view the full analysis from the report here: NBG Ratings Report