HB turns losses into prof­its

Financial Mirror (Cyprus) - - FRONT PAGE -

Hel­lenic Bank, one of the fi­nal­ist bid­ders for the trou­bled Co-op­er­a­tive Bank has an­nounced net prof­its of EUR 28.6 mln.

It’s a wel­come turn­around for a bank which posted loses of EUR 10.5 mil­lion in Q1 of 2017. It said net prof­its were due to the in­crease in its rev­enue and the ac­count­ing changes re­lat­ing to pro­vi­sions.

Hel­lenic Bank said it has made progress “in im­ple­ment­ing its main strate­gic pri­or­i­ties, of re­solv­ing its non-per­form­ing ex­po­sures and of pru­dently grow­ing its bal­ance sheet”.

Mean­while the Group main­tains its strong cap­i­tal po­si­tion with a CET1 ra­tio of 13.9% and total cap­i­tal ad­e­quacy ra­tio of 17.6%, both on a tran­si­tional ba­sis, which are well above min­i­mum reg­u­la­tory cap­i­tal re­quire­ments.

HB said it “con­tin­ued fi­nanc­ing the Cypriot econ­omy sup­port­ing cred­it­wor­thy busi­nesses and house­holds, while ex­am­in­ing other growth op­por­tu­ni­ties”.

Group’s Chief Ex­ec­u­tive Of­fi­cer Yian­nis Mat­sis said that the bank has reached a new lend­ing mo­men­tum.

“New lend­ing for the first quar­ter amounted to ?139 mil­lion, 56% higher com­pared to a year ear­lier,” said Mat­sis.

The bank man­aged to re­duce its NPLs for the tenth con­sec­u­tive quar­ter.

Within its strat­egy to man­age and re­duce its NPL ex­po­sure, the Bank has agreed to sell a non–per­form­ing loan port­fo­lio of pre­dom­i­nantly non-re­tail un­se­cured ex­po­sures to B2Kap­i­tal Cyprus Ltd, a wholly owned sub­sidiary of Nor­we­gian B2Hold­ing ASA.

The gross con­trac­tual out­stand­ing bal­ance of the port­fo­lio was EUR 145 mil­lion com­pris­ing of 1,158 bor­row­ers and 1,977 fa­cil­i­ties (as at Septem­ber 2017).

HB’s level of NPEs has been re­duced to EUR 2.13 mln at 31 March 2018, record­ing a 2% drop com­pared to EUR 2.16 mil­lion at 31 De­cem­ber 2017 and is down by 21% since its peak.

The quar­terly re­duc­tion was mainly driven by the cur­ing of re­struc­tured loans, col­lec­tions, debt to as­set swaps and write offs.

The NPEs pro­vi­sion cov­er­age stood at 62% as at 31 March 2018 (31 De­cem­ber 2017: 61%).

Con­sid­er­ing tan­gi­ble col­lat­er­als, the Net NPEs col­lat­eral cov­er­age stood at 142% as at 31 March 2018.

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