Hel­lenic re­turns to prof­its, aims to re­duce NPLs fur­ther

Financial Mirror (Cyprus) - - FRONT PAGE -

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.

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