Source: CNA
Hellenic Bank announced a profit of €76.4 million for the first 9 months of 2022. According to the Group Financial Results for the nine-month period, which ended on September 30, 2022, there is a solid capital position with a Pro forma CET1 ratio of circa 18.7% and a Capital adequacy ratio of circa 21%, significantly above the minimum regulatory requirements.
The bank also notes its “de-risked balance sheet”, saying that its pro forma NPE ratio was 10.2% while excluding the NPEs covered by the APS agreement it was at circa 3.8%.
"...the profit of €76.4 million reported in the first nine months of 2022 mainly reflects “higher income and loan impairment reversals, while our net interest income reached the €205,9 million.”
As for Project Starlight, the agreement to sell circa €0.7 billion NPEs and the APS Debt Servicer, the bank notes it is expected to be completed in early 2023.
In a press release, Hellenic Bank also highlights the 2022-2024 Strategic Plan to transform and address structural challenges on track, focusing on digitalization and cost control, and notes the successful completion of the voluntary early exit scheme (VEES) with circa 450 employees leaving.
Commenting on the Group’s financial results for the nine-month period which ended 30 September 2022, Petros Arsalides, officiating Chief Executive Officer’s duties of the Group, stated that “despite the challenging period, during the first nine months of the year, the country has experienced a strong economic rebound with a 5.4% GDP growth for the third quarter of 2022. COVID-19-related side effects significantly subsided, but market volatility remains high, fueled mainly by the uncertainty that the continuing crisis in Ukraine creates, and the high inflation rates.”
Hellenic Bank has delivered yet again an excellent set of financial results, he added and said that that the profit of €76.4 million reported in the first nine months of 2022 mainly reflects “higher income and loan impairment reversals, while our net interest income reached the €205,9 million.”
With a strong capital adequacy ratio of 21.42%, well above the regulatory requirements, and ample liquidity (Liquidity Coverage Ratio of 470%), we are committed and simultaneously well positioned to continue supporting our retail and business customers, during this challenging period, he went on.
According to Arsalides, financing sectors such as health, education, energy, ICT, hospitality, transportation, and shipping remain a high priority to the bank, while during the first nine months of 2022, €0.8 billion of new loans were granted, up by 29% year on year.
He also said that the 3-year transformation journey is “on track to address structural challenges” and “unleash hidden potential” while the bank is transforming into a customer-centric organization, by improving customers’ experience through alternative channels, streamlining procedures and offering simple and competitive products.
“We focus on digitalization and cost control while enhancing the profile of our loan book through healthy growth with a strong focus on Environmental, Social and Governance issues (ESG)” he said.
Following the reinstatement of salaries of ex-CCI colleagues and the successful completion of a generous Voluntary Early Exit Scheme, Arsalides said that the bank continues with its transformation journey.
Another key highlight is a net interest income of €205.9 million during the first nine months of 2022, while total new lending implemented during the same period reached €0.8 billion. NPE's provision coverage ratio stands at 54% as of 30 September 2022, and there is a cost-to-income ratio of 74% for the first nine months of the year.
The bank also reports an ample liquidity position, with a Liquidity Coverage Ratio of 470%, a liquidity surplus in LCR of €6.6 billion, and with €5.2 billion placed at the ECB, positioning the Bank to benefit from rising interest rates., There is a net loan to deposits ratio of 40%, enabling the further business expansion, the bank concludes.
