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Citigroup upgrades estimates for HB

20/11/2007 15:00
After the announcement of the bank’s nine-month results, Citigroup reviewed its estimates for the EPS of Hellenic Bank in 2008 and 2009. The EPS is expected to reach €0.51 in 2007, €0.54 in 2008 and €0.63 in 2009.

According to Citigroup, “core revenues were slightly better than expected: NII +36% yoy”.

“3Q results include a couple of "funnies": trading/gains lower than expected due to IRS swap losses (offset by balance sheet gains) and Greek bond losses, while taxes were lower (ie better)” the report said.

“Otherwise, the 3Q results appear to be a solid, high-quality set of results”, it added. For 2007, Citigroup expects that Hellenic Bank will achieve profits of €135.3 million, for 2008 €155.9 million and for 2009 €182.9 million.

Hellenic Bank is targeting a revised 2007 ROE of 29.1% (previously 25.1%) in line with a Citi estimate of 30%. “We are forecasting ROEs of 27% for both 2008E and 2009E”, Citigroup said.

“We reiterate our Buy rating and €7.5 target price”, it concluded.