Hellenic Bank posts €69.7 mln Q1 profit

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Hellenic Bank posted €69.7 mln profit for the first quarter of 2023, as it offloads toxic loans.

The bank holds a Solid Capital Position with a CET1 ratio of 19.3% and a Capital adequacy ratio of 25.1%, significantly above minimum regulatory requirements.

Its NPE ratio was 9.3%, while excluding the NPEs covered by the APS agreement was at 3.4%.

Regarding Project Starlight’s completion in Q1 2023, Hellenic Bank said it heralds a new era, with the securitisation of around €0.8 bln of NPEs and the sale of the APS Debt Servicer.

Hellenic Bank also highlights the Successful Tier 2 Subordinated Notes issuance of €200 mln in March, noting that it attracted significant international investor interest.

Oliver Gatzke, the Group’s Chief Executive Officer, said 2023 started on a strong footing for Hellenic Bank, “as we recorded a solid first quarter, by generating profits of €69.7 million, mainly due to higher income and cost rationalisation”.

Gatzke noted that Hellenic Bank remained unscathed by the turbulent financial market conditions in the US and Europe, mainly due to its strong capital position (Capital adequacy ratio of 25.1%) and ample liquidity (Liquidity Coverage Ratio of 454%).

“Our robust financial position enables us to continue supporting our retail and business customers by providing competitive, tailormade credit products and services.”

New lending during Q1 2023 reached €315 mln, up by 17% YoY, increasing the bank’s market share on new lending to 35% until April 2023, compared to 28% in 2022.

Net interest income reached €108.1 mln, demonstrating an increase of 74% compared to Q1 2022, primarily due to the global higher interest rate environment.

The adjusted cost-to-income ratio is 40%, per the bank’s medium-term objectives.

“Following the recent inclusion of Cypriot legal entities and physical persons in the US/UK sanctions’ lists, I would like to reiterate the Bank’s full adherence to sanctions issued by the European Union and the United States as well as the UK, applying a zero-tolerance policy through rigorous and strict controls and measures,” the CEO said.

He added: “The encouraging results and the completion of our achievements of Q1 2023 give us confidence that we are on the right track delivering profit before tax of higher than €200 mln in 2023.

“I am very thankful and proud of our staff that remains focused on supporting customers, executing our demanding transformation plan, and continuing to create value for shareholders.”