Hel­lenic Bank in € 12 mln profit turn­around

Financial Mirror (Cyprus) - - FRONT PAGE -

Hel­lenic Bank, one of four sys­temic banks that un­der­went strin­gent cap­i­tal tests last Oc­to­ber and raised about 200 mln in fresh funds, re­ported a profit of EUR 12 mln in the first quar­ter this year, com­pared to a EUR 26 mln loss in the same quar­ter of 2014.

“Dur­ing a pe­riod where the eco­nomic en­vi­ron­ment re­mains frag­ile and the bank­ing sec­tor con­tin­ues to face chal­lenges, the re­turn to prof­itabil­ity for a sec­ond con­sec­u­tive quar­ter in­di­cates that the Hel­lenic Bank Group is on the right track to achiev­ing its goals while at the same time shows signs of sta­bil­ity,” the bank said in a state­ment.

De­posits were slightly up in the first quar­ter, in­creas­ing 4% to EUR 6.6 bln, thus en­hanc­ing the Group’s com­fort­able liq­uid­ity, as well as prospects for growth and prof­itabil­ity.

How­ever, the bank’s lead­er­ship, in­clud­ing CEO Bert Pi­jls, has stated that Hel­lenic will not, for now, seek over­seas ex­pan­sion and will look to or­ganic growth at the lo­cal level.

The Group’s profit from or­di­nary op­er­a­tions be­fore im­pair­ment losses and pro­vi­sions amounted to EUR 22 mln, to­talling EUR 12 mln af­ter pro­vi­sions. The first quar­ter im­pair­ment losses and pro­vi­sions to cover credit risk amounted to EUR 13 mln.

The sale of Boren­ham Hold­ings Limited, the bank’s sin­gle-branch sub­sidiary in Rus­sia, re­sulted in a profit of EUR 5 mln. It now op­er­ates rep­re­sen­ta­tive of­fices in Moscow and St Peters­burg.

The ra­tio of non-per­form­ing loans to the to­tal gross loans, cal­cu­lated in ac­cor­dance with the new method­ol­ogy of the Euro­pean Bank­ing Author­ity, stands at 60%, of which 47% is cov­ered by pro­vi­sions for i mpair­ment and the re­main­der by tan­gi­ble col­lat­eral.

Recog­nis­ing that the man­age­ment of NPLs is the big­gest chal­lenge of the bank­ing sys­tem, Hel­lenic said it is pro­ceed­ing with a spe­cific plan for their man­age­ment which aims to re­sult in fair and vi­able re­struc­tur­ings.

“In spite of the over­all un­cer­tainty that was caused by the Eu­rogroup’s de­ci­sions in March 2013, over the past two years the Hel­lenic Bank Group has man­aged to in­crease its de­posits sig­nif­i­cantly. The pos­i­tive de­posits trend con­tin­ued dur­ing the first quar­ter of 2015, re­sult­ing in a 4% in­crease in de­posits com­pared to De­cem­ber 2014 (EUR 6.3 bln) which reached EUR 6.6 bln with a net loans to de­posits ra­tio of 49%,” the bank’s state­ment added.

“Hav­ing a strong cap­i­tal po­si­tion, Hel­lenic Bank can with­stand the pres­sures and is ready to take ad­van­tage of the op­por­tu­ni­ties for growth.”

The Group’s cap­i­tal ad­e­quacy ra­tio at March 31 was 17.9%, the Tier 1 cap­i­tal ra­tio 16.2% and the com­mon eq­uity tier 1 (CET 1) Ra­tio 13.3%.

Newspapers in English

Newspapers from Cyprus

© PressReader. All rights reserved.