HB turns losses into profits
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.