Newsroom / CNA
Hellenic Bank has reported a profit of €69.7 million for the first quarter of 2023, signaling a strong start to the year. The bank's solid capital position is evident, with a CET1 ratio of 19.3% and a capital adequacy ratio of 25.1%, well above regulatory requirements. The non-performing exposure (NPE) ratio stood at 9.3%, dropping to 3.4% when excluding NPEs covered by the APS agreement. The completion of Project Starlight in the first quarter marks a new era for the bank, involving the securitization of approximately €0.8 billion of NPEs and the sale of the APS Debt Servicer.
A significant milestone for Hellenic Bank was the successful issuance of €200 million Tier 2 Subordinated Notes in March, attracting considerable interest from international investors. Oliver Gatzke, the bank's CEO, expressed satisfaction with the solid first-quarter performance, attributing the €69.7 million profit to increased income and cost rationalization. Despite turbulent financial market conditions in the US and Europe, Hellenic Bank remained resilient due to its robust capital position and ample liquidity.
During the first quarter, new lending amounted to €315 million, a 17% year-on-year increase, resulting in the bank's market share in new lending rising to 35% by April 2023. Net interest income reached €108.1 million, a significant 74% growth compared to the same period in 2022, primarily driven by the global higher interest rate environment. The bank's adjusted cost-to-income ratio of 40% aligns with its medium-term objectives.
In light of recent sanctions affecting Cypriot entities and individuals in the US and UK, the CEO reiterated the bank's strict adherence to EU, US, and UK sanctions, enforcing a zero-tolerance policy through rigorous controls and measures. Looking ahead, Hellenic Bank is confident in delivering a profit before tax exceeding €200 million in 2023, supported by dedicated staff focused on customer support, executing transformation plans, and generating value for shareholders.
