CYPRUS: Hellenic Bank posts profits, despite provisions at 50%

Hellenic Bank Group posted net profit of EUR 13 mln for 2015, marking a turnaround from a loss of EUR 118.6 mln in 2014.

 
Releasing its final audited results for 2015, the bank said it posted profits despite recognising additional provisions of EUR 71m, recommended by the regulatory authorities.
“Auditors confirm that the profits attributable to shareholders of the parent company amount to EUR 12.1 mln compared to losses of 118.6 mln in 2014,” the bank said.
Despite recognising elevated provisions, the bank enjoys “an enhanced capital base which more than covers the additional requirements of the SSM, while at the same time it enjoys a safety margin in its Common Equity Tier 1 ratio (CET1) which amounted to 14.8%.”
The Group’s Capital Adequacy Ratio stood at 18.1% and its Tier 1 Ratio at 17.7%, the bank added.
On December 31, non performing exposures dropped to 59% compared to 61% in the third quarter of 2015 and “constitute the first substantial reduction realised since the 2013 crisis.”
During 2015 the coverage ratio of non-performing exposures aligned with the EU’s average, increasing from 46% to 50%.
Loan restructuring picked up in the second half of 2015, totalling EUR 758 mln for the year.
With a net loan to deposits ratio at 50%, the bank supported the real economy by approving new loans of EUR 377 mln to creditworthy companies and households.
At December 31, total gross loans to clients amounted to EUR 4.4 bln while deposits stood at EUR 6.1 bln.
As per the audited financial results, net interest income rose by 6% (EUR 37.1 mln) in the fourth quarter of 2015 compared to the third quarter (EUR 34.9 mln). The Group’s non-interest income has increased significantly reaching EUR 43.1 mln compared to EUR 22.4 mln in the third quarter of 2015.
The Group’s administrative and other expenses increased by 4% in the fourth quarter of 2015, mainly due to the ex-gratia payments of EUR 3.1 mln to staff members who opted to take the Special Early Retirement Scheme.