Hellenic Q1 profits jump 105%

Hellenic Bank Group (HB) reported a 105% increase in first quarter net profits to CYP 2.97 mln from CYP 1.44 mln a year ago, and although the return on equity (ROE) of the Bank jumped to 8.5%, yet bank officials were reluctant to issue a forecast or reveal their medium-term targets.

Total net income was up 17% to CYP 28.66 mln, boosted in part by a 16% jump in net interest income to CYP 19.92 mln, while other income increased by 17%.

Total expenses increased by 14% year-on-year to CYP 20.46 mln, of which staff costs rose 15% to CYP 14 mln, depreciation charge was up 12% to CYP 1 mln while other expenses were up 13% at CYP 5.29 mln.

The share of CYP 435.000 in profits from associate company, Athena Investments helped boost profits before provisions and tax to CYP 8.63 mln, or an increase of 27% compared to CYP 6.8 mln.

Provisions for doubtful debts fell 4% y/y to CYP 5.07 mln from CYP 5.29 mln, helping lift pretax profits by 109% to CYP 3.18 mln while net after tax and minorities profits were up 105% to CYP 2.968.000 from CYP 1.445.000 a year ago in the first quarter.

The net interest margin improved to 3.03% from 3.02% end of 2004 but the cost to income ratio remained stubbornly high at 71% compared to 73% a year ago.

Pieris Theodorou, a member of the Board and Management revealed that the total of provisions for doubtful debts reached CYP 178 mln, which correspond to 10.7% of the loan portfolio while the total of non-performing loans amounted to CYP 226.4 mln.

According to Georgos Appios, the Chief Financial Controller of the Hellenic Bank Group, the price to earnings ratio of the Bank is 8.26 times annualised profits, the book value per share is 61 cent while the price to book value is 0.68.

Total group advances increased 5% to CYP 1.66 bln of which loans in Greece increased by 20% to CYP 326.5 mln. Total group deposits rose 12% y/y to CYP 2.2 bln while in Greece client deposits reached CYP 323.4 mln.

The total branch network in Greece has now reached 25.