Hellenic Bank announced after tax profits of €59.1 million for the first six months of 2019, with Chief Executive Officer Ioannis Matsis stressing that the six-month results partly reflect the benefits of acquiring the co-op.
A significantly de risked balance sheet, enhanced and sustained profitability and a strong capital position with a CET1 ratio of 18.5% prove that the enlarged Hellenic Bank has a solid, viable, long term business model, that safeguards our depositors and creates shareholder value, the bank said in a statement.
Profit before provisions for the second quarter of 2019 amounted to €33.8 million and after tax profits for the second quarter amounted to €44.2 million.
It also reports that there has been a significant risk reduction in the bank’s balance sheet after acquiring the operations of the former co-op banks and noted that the Non-performing Loans Index (NPL) stood at 25.2 per cent (or 31.4 per cent including NPLs).
In a written statement, Matsis pointed out that “the significant reduction in the balance sheet risk, sustained and enhanced profitability as well as the strong capital position with the CET1 ratio at 18.5 per cent prove that the enlarged Hellenic Bank has a solid, sustainable and a long-term business model that protects its customers’ deposits and creates value for its shareholders.”
The statement also said that the Hellenic Bank, as a consolidated bank can now focus on its growth strategy objective, which is based on a customer-centric approach.
“We continue to finance the growth of the real economy by supporting our loyal customers, both individuals and households, as well as businesses. At the same time, we are working systematically to improve the quality of our balance sheets, by improving our exposure to NPLs.”
To achieve the goals, according to Matsis, Hellenic Bank relies on four pillars – the staff, which are the driving force of the Bank; the investments in technology, aiming at enhancing digital customer service and simplifying their contact with the bank; further streamlining the bank’s operations, providing a seamless and enjoyable customer service experience; and aligning with regulations and laws regarding prudent risk taking, always in close cooperation with the supervisory authorities.
Regarding the biggest achievement of 2019 for the successful bank, within the timeframes and budget of integrating the systems and accounts of the former co-op clients, which began a year ago, the CEO said that “completing this project, a strategic priority for the Bank that absorbed all our resources and attention during 2018 and 2019, would not have been possible without the hard work, and the professionalism of the staff.
So, I would like to thank everyone sincerely for the hard work we have achieved to reach this milestone.”
In its announcement, Hellenic Bank stressed that it is a leading retail bank in Cyprus, with the largest branch network and deposit and lending market share of households at 38.9 per cent and 30.1 per cent respectively.
The total of new loans approved in the first half of 2019 amounted to €387.6 million.
The NPL provisioning coverage ratio stood at 64.0% at June 30, 2019 (or 52.9% including NPLs covered by the MAGP)
Texas Index (excluding MVPs covered by the MAGP) decreased to 84.2%
Income and expenses for the first half of 2019 reached 65.1%
Hellenic Bank reports strong liquidity, with Liquidity Requirement Ratio (LCR) at 585% – Deposit financing, accounting for 89.9% of total assets
Lastly, the lending to deposit ratio stood at 42.0%, allowing further growth.