Hellenic Bank, poised to become the largest lender in Cyprus after a series of takeovers and consolidation in the banking sector, recorded near-identical profits in the second quarter of the year, as in the first.
Driving the revenue in the first half was €304 mln in net interest income (Q1: €151 mln, Q2: €153 mln), up 29% year on year from the first half last year.
Furthermore non-interest income reached €57 mln (Q1: €28.3 mln, Q2: €28.7 mln).
This resulted in after-tax profit for the January-June period of €189 mln, up 18% from the first half of 2023. However, quarter-on-quarter profits were marginally up, from €93.3 mln in Q1 to €95.7 mln in Q2.
Interim CEO, Antonis Rouvas, said in a statement that, “Hellenic Bank’s performance for the first half of 2024 was solid… and, demonstrates the resilience and robustness of our business model, despite the continuing challenges and uncertainty rising from the geopolitical and economic environment.”
He added that, “with a pro forma total Capital Ratio of 32,2%, well above the regulatory requirements, and ample liquidity (Liquidity Coverage Ratio of 517%), we are well positioned and fully committed to continue supporting our customers. New lending during the first half of 2024 reached €472 mln, as we continue providing competitive, tailor-made credit products. Further reduction of the NPE ratio remains a priority.”
Key achievements
Three key achievements in the recent period will determine the future path of the bank’s health and profitability: a framework agreement with the ETYK trade union for the renewal of the staff collective agreement; the €182 mln takeover of CNP Assurances’ Cyprus operations to create the largest insurance operator on the island with a 30% market share in the life sector and 23% in the general insurance sector; and, the conclusion of the takeover bid by Eurobank that now controls 55.9% of the shares.
Rouvas said that the decision by Eurobank, one of the largest financial organisations in Greece to invest in Hellenic Bank, “constitutes a vote of confidence in our business model and franchise and as a result in our country’s economy.
“A new era starts for Hellenic Bank,” he said.
The CEO concluded that the significant strengthening of the bank’s fundamentals has been recognised by major credit rating agencies.
“In July 2024 Fitch Ratings upgraded the bank’s Issuer Default Ratings to an investment grade rating of BBB-, while in June 2024 Moody’s Ratings initiated a review for a possible upgrade of the bank’s ratings.
“Our goal is to further enhance our loan book through healthy and sustainable growth with a strong focus on ESG. The bank’s Annual ESG Impact Report for 2023 was recently published incorporating our pledge and efforts for a more sustainable economy.”
