Hellenic returns to profits, aims to reduce NPLs further
Hellenic Bank closed 2015 with a bigger, healthier balance sheet and a reducing trend in non-performing loans, it announced on Friday.
Despite the difficult and challenging economic environment and the increased requirements of the Single Supervisory Mechanism (SSM), 2015 was a profitable year for the bank, according to the preliminary results approved by the board.
Hellenic Bank Group posted a profit of EUR 13 mln after booking all the additional EUR 71 mln provisions recommended by the SSM following its recent on-site supervisory review.
Profit attributable to shareholders of the parent company reached EUR 12.1 mln compared to a loss of EUR 118.6 mln in 2014.
The bank said it’s capital position more than covers the additional requirements for provisions. It also offers a safety margin regarding the Common Equity Tier 1 ratio. After the additional provisions, the CET 1 stands at 14.8%, while the Group’s capital adequacy ratio is 18.1% and the Tier 1 Ratio is 17.7%.
Non performing loans were reduced by 3% in the fourth quarter from the previous quarter. As at December 31, 2015, the NPE ratio decreased to 59% from 61% in the third quarter and the NPEs management is on the right track.
The pace of loan restructurings was accelerated in the fourth quarter of 2015 reaching EUR 758 mln at the end of 2015.
Net interest income increased by 6% in the fourth quarter of 2015 to EUR 37,1 mlnm up from 34.9 mln in the third quarter.
Total gross loans reached EUR 4.4 bln, while deposits reached EUR 6.1 bln.
CEO Bert Pijls said that “we approved new loans totalling EUR 377 mln, which is a very material increase from the previous year as well as a much larger share of new lending than our current market share.”
Of that amount, about EUR 300 mln was for business loans (216 mln to large companies and 84 mln to SMEs), while EUR 77 mln were for new retail and household loans.