Insider Business Hellenic: Profits by Co-op bank’s absorption

Hellenic: Profits by Co-op bank’s absorption

Hellenic Bank’s fourth quarter 2018 financial results provide an initial but fairly indicative picture of how the absorption of Cyprus Co-op Bank will affect the lender’s income and, most probably, its profitability.

Hellenic’s total income in the fourth quarter of 2018 amounted to €107.4 million, while that of the quarters between January 2017 and June 2018 was €52 million on an average.

The biggest increase stems from the net interest income which amounted to €80.4 million, while the average quarterly was 31.5 million.

Income from fees and commission amounted to €16.9 million compared to €11 million while other income amounted to €10.1 million compared to €9.5 million on an average.

On the other hand, there was a rise on the expenditure side but at a much lower level. For example, staff costs amounted to €28.2 million in the fourth quarter compared to €20.8 million which was the average before the absorption of assets, liabilities and staff from Co-op bank.

Administration and other expenses were almost doubled and amounted to €34.2 million, but they also included €6.4 million related to the process of absorbing the acquired assets. In previous quarters, the average of these costs was €18.9 million.

With the percentage of Hellenic’s non-performing loans significantly declining and with the coverage ratio being particularly high, it is estimated that profitability will continue to improve in the coming quarters as the process of incorporating the former Co-op advances.

For the fourth quarter of 2018 the bank recorded profits of €24.1 million or 12 cents per share.

 

Read more:

https://in-cyprus.com/hellenic-bank-profits-and-lower-npes-in-2018/

 

 

 

 

 

 

 

 

 

 

 

 

 

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