Insider Business Hellenic Bank posts profits of €14.9 million in first quarter 2019

Hellenic Bank posts profits of €14.9 million in first quarter 2019

Hellenic Bank on Friday announced after tax profits of  €14.9 million in the first quarter of 2019, saying that the acquisition of CCB’s operations and the simultaneous de-risking of its balance sheet had established it as as the strongest and most viable bank in Cyprus.

In an announcement, Hellenic said it was the leading retail bank on the island with the largest branch network and with market shares of 38.9% and 29.7% in household deposits and loans, respectively.

The bank also referred to the successful completion of the share capital rise of €150 million and said its CET1 ratio of 18.54% and Capital adequacy ratio of 21.16%,were  well above minimum regulatory requirements.

Following the acquisition of CCB, Hellenic’s balance sheet is significantly de-risked with the NPEs ratio at 26.5% (or 32.6% incl. the APS-NPEs), and Net NPEs to Assets ratio at 4.2% (or 6.9% incl. the APS-NPEs) compared to 11.7% in June 2018, it added.

“The acquisition of CCB operations and the simultaneous de-risking of our balance sheet and business model established Hellenic Bank as the strongest and most viable Bank in Cyprus, safeguarding our depositors’ assets, generating value to our shareholders and providing good quality products and services to all our customers,” CEO Ioannis Matsis said in a statement.

The financial results of the first quarter of 2019 prove that the now enlarged Hellenic Bank is performing at much better rate compared to the equivalent first quarter results of 2018, he added.

“In the meanwhile, we are excited to continue pursuing our growth strategy through financing the growth of the economy. The approved total new lending for the first quarter reached €177.2 million, higher again than the respective quarter of the previous year. Also, we intensively focus on improving the quality of assets on our balance sheet through resolving and deleveraging our NPE exposures.  Our investment in our subsidiary loan servicer, APS, is yielding results,” he said.

“The integration process is on track and I am confident that it will be effectively completed by the end of the year, within our target,” he added

Other key highlights:

  • 1Q2019 Profit before provisions of €35.9 million, and 1Q2019 Profit after taxation of €14.9 million.
  • Total new lending approved during 1Q2019 reached €177.2 million.
  • The NPEs provision coverage ratio stood at 55.2% as at 31 March 2019 (31 December 2018: 54.6%), while excluding the NPEs covered by the APS agreement is adjusted to 66.2% (31 December 2018: 65,4%).
  • Texas ratio3 (excl. APS-NPEs) reduced to 87%.
  • The cost to income ratio for 1Q2019 has slightly improved to 63.9%, compared to 64,1% in 4Q2018.
  • Robust liquidity position, with a Liquidity Coverage Ratio of 536%.





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