Hellenic Bank and Marfin Popular Bank announced record profits for the first half of the year, exceeding stock market expectations by nearly 170%.
Hellenic Bank Group recorded profits of EUR 70,3 mln for the first half, up 169% from EUR 26,1 mln in the same period last year, with the bank expected to exceed the net profits of EUR 105,4 mln for the whole year, as forecast by Citigroup and EUR 105,2 mln according to Sharelink Securities & Financial Services. Hellenic Bank reported total profit of EUR 58.8 mln for the whole of 2006.
Earnings in the first half before interest and taxation rose 68% to EUR 87,2 mln from 51,8 mln during the same period last year.
The Group CEO, Makis Keravnos, said that “judging from the analysis of the first half results, the quantative and qualitative improvement of the Group is undoubtable,†adding that the board has proposed an interim dividend of five cents, compared to the final dividend of six cents for the whole of 2006.
He said that major factors contributing to this dramatic improvement were the reduction of provisions by 70%, cutting the cost to income ratio to 48,6% and a rate of increase of earnings much higher than the rate of increase of costs, with the latter contained at 6%.
Keravnos added that a turnaround was achieved in Greece with the branch network there reporting a gross profit of EUR 1,36 mln, compared to a loss of EUR 1,7 mln in the first half of 2006. Lending rose 32% and deposits were up 51%.
He concluded that the three-year strategic development plan for 2007-2009 is being implemented thoroughly with the further expansion in Greece as a major priority, together with the development of international operations, better utilisation of liquidity and further developments in the field of investments, insurance and private banking.
Marfin Popular Bank too reported record increases in first half profits, with the figure of EUR 343,1 mln (up 164% from H1 2006) exceeding by far market expectations.
The bank’s chairman and CEO, Andreas Vgenopoulos, said that the healthy first half results reflect the hard efforts of the management and staff that aim to transform the group into a major banking group in southeastern
The Group’s assets rose 51% to EUR 29,1 bln, loans were up 37% to EUR 15,2 bln and deposits increased 40% to 20,1 bln, while the cost to income ratio improved to 39,9% from 52,9% in the first half of 2006.
The most significant events during the first half were the successful completion of the merger between Egnatia and Marfin Bank and Laiki Bank Hellas, the branch network expansion, the management restructuring, the entry into the Ukrainian market, and the capital increase by EUR 5,19 bln.
Vgenopoulos said that the Group maintains its investment in the Marfin Investment Group (MIG) which has significantly diversified its investments and activities and will continue to contribute to the Group’s profitability in the future.
