Hellenic Bank posts net profit EUR 89.4 mln for nine months

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Enlarged Hellenic Bank said its robustness is demonstrated by its nine-month financial results in posting €89.4 mln after-tax profits.

Hellenic boasts being Cyprus’ leading retail bank with the largest branch network with a market share of 38.5% and 29.8% in household deposits and loans, respectively.

The bank said it has a strong capital position with a CET1 ratio of 19.0% and capital adequacy ratio of 21.5%, significantly above minimum regulatory requirements.

It pointed to a significantly de-risked balance sheet since the NPEs ratio was at 25.2% (or 31.8% incl the APS2-NPEs), and the Net NPEs3 to Assets ratio at 4.0% (or 6.6% incl. the APS2-NPEs).

Hellenic Bank CEO Yannis Matsis said: “Our nine-month 2019 financial results along with the resulting capital position demonstrate the robustness and solidity of the enlarged Hellenic Bank.”

He added that “our business model is shaped to adapt with the rapid changes taking place, especially in the digital domain.”

“Our plans aim in maintaining sustainable profitability and in generating solid returns to our shareholders.”

Matsis argued that following the integration of the Co-op business, “we can focus all our efforts to grow the Bank and to enhance the franchise, within a sound control and governance framework”.

Approved lending during 9M2019 reached €572.5 mln, thus improving Hellenic’s loan market share from 19.5% in December to 21.1% as at 30 September 2019.

“We are intensively working on normalising our balance sheet considering both organic and non-organic options for resolving the NPEs,” Matsis said.

He said to achieve these goals Hellenic relies heavily on its staff and investing in digital technology.

“Our staff is the driving force of the bank; we aim to further improve productivity and upgrade their wellbeing.”

Matsis said that Hellenic wants to “radically transform clients digital experience and also simplify their time-consuming interaction with the bank.”

Profit after tax for Q3 2019 was €30.2 mln, NPEs provision coverage ratio was 64.8% as at 30 September, (or 53.4% including the APS-NPEs), the cost to income ratio for 9M2019 stood at 67.3%, Liquidity Coverage Ratio of 537% and loans to deposits ratio of 41.5%.

“Hellenic Bank has embarked on a new era, determined to continue its pivotal role in the growth of the real economy, supporting creditworthy Cypriot businesses and households with a comprehensive range of quality banking services,” a bank statement said.

“As the biggest retail bank on the island, its mission is to provide excellent services as well as competitive products and solutions to its enlarged customer base. Its robust liquidity allows the exploitation of opportunities in various sectors of the economy and maintaining its focus on organic growth,” it added.

Hellenic said the focus of new loans will continue to be on companies that increase competitiveness and productivity of the country while private sector loans are geared toward mortgages, new customers and supporting current clients who are deemed viable.