Hellenic Bank announced a profit after tax of €93 million for the 1st quarter of 2024, compared to a profit of €69.7 million for the 1st quarter of 2023.
In a statement of financial results for the quarter ended 31 March 2024, Hellenic Bank reports that it has a stable capital base with the adjusted Common Equity Tier 1 (CET1) ratio at 24.62% and the adjusted Total Ratio Capital at 30.2%, which "significantly exceeds the minimum requirements of the supervisory authorities".
It also reports that balance sheet risk has decreased as the Non-Performing Loans Ratio (NPL) is at 2.5 %, with NPL provision coverage ratio at 42%.
Return on tangible equity (ROTE) (on an annualized basis) stood at 25% in Q1 2024, while net book value per stock (TBVPS) is up 34%, year-over-year.
New lending was €208m for 1Q2024, while total net income for 1Q2024 was €179.3m, up 33% compared to €134.9 million in the 1st quarter of 2023, mainly due to the increase in net interest income, net gains from disposal and revaluation of foreign exchange and financial instruments and other income.
Net interest income came to €151 million, up 40% year-on-year, "benefiting from interest rates and balance sheet liquidity, mainly due to Central Bank deposits".
Total expenses for Q1 2024 were €71.1 million, up 11% year-on-year compared to €64.3 million for Q1 2023, mainly due to an increase in staff costs and administrative and other costs. Total expenses for the 1st quarter of 2024 increased by 9% compared to €65.3 million in the 4th quarter of 2023, mainly due to the increase in staff costs and administrative and other costs.
According to Hellenic Bank, 99.7% of new lending after 2018 is serviceable, while the cost-to-income ratio for the 1st quarter of 2024 was at 33%.
The bank reports that it has comfortable liquidity, with a Liquidity Coverage Ratio (LCR) of 580% and €5.1 billion placed with the ECB, allowing the Bank to benefit from the increase in interest rates.
The Net Loans to Deposits Ratio as of March 31, 2024 was at 40.3%, allowing for further business expansion.
The Bank reports that it is focused on retail banking with a stable customer base and a significant market share among households (36 % in deposits and 33% in loans).
Commenting on the Group's results for the quarter ending 31 March 2024, Antonis Rouvas, Interim Chief Executive Officer of the Group, stated that "2024 started strongly for Hellenic Bank, recording profits of €93.3 million for in the first quarter, mainly due to higher revenues.
"The results demonstrate the resilience and potential of our business model despite the ongoing challenges and uncertainty stemming from the geopolitical and economic environment," he added.
He also stated that "we remain alert to possible risks that could negatively affect the Bank's performance, due to the challenges in the financial and operational environment and the increased geopolitical risk" and added that "the further reduction of our NPL ratio remains a priority for us".
Referring to the milestone achievements for the Group, Mr. Rouvas said that the first was that "after long negotiations and the mediating proposal of the Minister of Labor and Social Insurance there is a framework agreement for the renewal of the collective agreement between the Bank and ETYK" ?.
He also mentioned that the second development concerns the Bank's agreement with CNP Assurances for the subsidiary of CNP Cyprus Insurance Holdings Limited, which operates in Cyprus and Greece.
« This will allow Hellenic Bank to significantly strengthen its insurance activities and will become a leading financial group with a strong presence, both in the banking and insurance sectors in Cyprus, he concluded.
With reference to developments in the stock market structure, Hellenic Bank reports that Eurobank has agreed to acquire an additional stake of 26.1%, which, subject to regulatory approval, will increase its stake to 55.3% and, in accordance with the Public Takeover Proposals Law of 2007 (N. 41(I)/2007), Eurobank should proceed immediately with a mandatory offer for all the remaining shares.
Source: KYPE
