Cyprus Mail

Hellenic posts €295.9m net nine-month profit

Hellenic Bank said Wednesday it recorded a net profit of €295.9m in the first nine months of the year, including negative goodwill of €297.9m from the acquisition of certain parts of the former co-operative bank.

Excluding the negative goodwill and non-recurring elements relating to the acquisition, profit before provisions was €23m in the third quarter of the year, compared with €9.2m the previous quarter.

The lender’s Non-performing exposures ratio dropped in Q3 to 25.6 per cent, from 51.6 per cent in Q2. The net NPEs to assets ratio fell from 12 per cent to 4 per cent.

Common Equity Tier 1 was 18.2 per cent while its capital adequacy ratio reached 20.9 per cent, taking into account a €150m fully underwritten capital raise, expected to be completed by March 2019.

“Our profitability and resulting capital position further safeguards our depositors and creates shareholder value,” Hellenic Bank CEO Yiannis Matsis said. “The acquisition of ex CCB strengthens our business model and propels the Bank into consistent, healthy profitability.”

Following the acquisition of the CCB, Hellenic is now the leading Retail Bank on the island with market share in household deposits of 39 per cent and market share in household loans of 30 per cent.