Hel­lenic Bank posts prof­its, de­spite in­creas­ing pro­vi­sions to 50%

Financial Mirror (Cyprus) - - FRONT PAGE -

Hel­lenic Bank Group posted net profit of EUR 13 mln for 2015, mark­ing a turn­around from a loss of EUR 118.6 mln in 2014.

Re­leas­ing its fi­nal au­dited re­sults for 2015, the bank said it posted prof­its de­spite recog­nis­ing ad­di­tional pro­vi­sions of EUR 71m, rec­om­mended by the reg­u­la­tory au­thor­i­ties.

“Au­di­tors con­firm that the prof­its at­trib­ut­able to share­hold­ers of the par­ent com­pany amount to EUR 12.1 mln com­pared to losses of 118.6 mln in 2014,” the bank said.

De­spite recog­nis­ing el­e­vated pro­vi­sions, the bank en­joys “an en­hanced cap­i­tal base which more than cov­ers the ad­di­tional re­quire­ments of the SSM, while at the same time it en­joys a safety mar­gin in its Com­mon Eq­uity Tier 1 ra­tio (CET1) which amounted to 14.8%.”

The Group’s Cap­i­tal Ad­e­quacy Ra­tio stood at 18.1% and its Tier 1 Ra­tio at 17.7%, the bank added.

On De­cem­ber 31, non per­form­ing ex­po­sures dropped to 59% com­pared to 61% in the third quar­ter of 2015 and “con­sti­tute the first sub­stan­tial re­duc­tion re­alised since the 2013 cri­sis.”

Dur­ing 2015 the cov­er­age ra­tio of non-per­form­ing ex­po­sures aligned with the EU’s av­er­age, in­creas­ing from 46% to 50%.

Loan re­struc­tur­ing picked up in the sec­ond half of 2015, to­talling EUR 758 mln for the year.

With a net loan to de­posits ra­tio

at

50%,

the

bank sup­ported the real econ­omy by ap­prov­ing new loans of EUR 377 mln to cred­it­wor­thy com­pa­nies and house­holds.

At De­cem­ber 31, to­tal gross loans to clients amounted to EUR 4.4 bln while de­posits stood at EUR 6.1 bln.

As per the au­dited fi­nan­cial re­sults, net in­ter­est in­come rose by 6% (EUR 37.1 mln) in the fourth quar­ter of 2015 com­pared to the third quar­ter (EUR 34.9 mln). The Group’s non-in­ter­est in­come has in­creased sig­nif­i­cantly reach­ing EUR 43.1 mln com­pared to EUR 22.4 mln in the third quar­ter of 2015.

The Group’s ad­min­is­tra­tive and other ex­penses in­creased by 4% in the fourth quar­ter of 2015, mainly due to the ex­gra­tia pay­ments of EUR 3.1 mln to staff mem­bers who opted to take the Spe­cial Early Re­tire­ment Scheme.

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