Hellenic Bank profits halved to €21 mln

Hellenic Bank saw its nine-month after-tax profits halved to €21 mln, from €40 mln in the same period last year, following a flat third quarter.

It reported €8.2 mln in after-tax profits in the second quarter.

However, the bank, still resolving non-performing loans associated with the takeover of the ‘good bank’ business of the former Cooperative Central Bank, said it has reduced its non-performing exposures (NPEs) to 14.5% of its loan book.

It aims to reduce it further to a single-digit ratio as part of the Project Starlight sale to asset managers APS.

The bank’s CEO, Oliver Gatzke, said the next target is the further transformation to a digital bank.

“With a robust capital adequacy ratio of 22.3% and liquidity coverage ratio of 473%, we remain committed to supporting our customers and investments in sectors that increase the competitiveness and productivity of the economy, such as health, education, energy (renewables), ICT, hospitality, transportation and shipping.”

Gatzke said the bank’s focus is on the drastic improvement of the quality of the loans portfolio, adding “the vast majority (more than 95%) of the borrowers that joined the loan moratorium scheme are performing well.”

“We reiterate our commitment to transform the bank into a customer-friendly organisation by improving our customer experience through digital onboarding, streamlining of our procedures and enhanced product scope.”