CYPRUS: Hellenic Bank aims for growth, op. profits up 22%, €119m loss

Hellenic Bank, the recently recapitalised lender majority controlled by foreign funds, announced an operating profit for 2014, before provisions, totalling €158 mln, up 22% from 2013, claiming a strong capital position and “comfortable liquidity” encouraging the group to aim for growth.

Net losses for the year reached €119 mln, hampered by the high rate of non-performing loans, valued at 56.6% of the group’s loanbook in the fourth quarter, obliging the bank to consider 47.5% provisions coverage for NPLs.
“With strong capital and comfortable liquidity, Hellenic Bank is positioned to develop and achieve sustained profitability,” the bank said in an initial statement, prior to a management briefing later in the day.
According to the preliminary results announced by the Group, as at end of 2014 Core Tier I ratio stood at 13.5% and deposits increased by 15%, “facts that demonstrate the great trust enjoyed by the bank from shareholders and depositors alike,” it said.
The operating profits before provisions amounted to €158 mln, with the fourth quarter of 2014 alone ending with a net profit.
The primary objectives of the bank for 2015 are the effective management of NPLs and the expansion of its loan portfolio, it said.
“With comfortable liquidity on hand, Hellenic Bank intends to play a leading role in the recovery of the real economy by funding viable businesses and households with new credit facilities,” the announcement added.