26/05/2016 13:48
Strong balance sheet, capital adequacy and comfortable liquidity are the main pillars on which we will build growth and change, Irena Georgiadou, chairwoman of the Board of Directors of the Hellenic Bank said in her address at the 2nd Annual General Meeting of the shareholders of the Hellenic Bank Group, during which work carried out in 2015 was reviewed and the Group’s prospects for 2016 were analysed.
On his part, the bank`s CEO Bert Pijls said «We have achieved a lot. We constantly improve ourselves and focus on the challenges that remain.”
Georgiadou reported briefly on the fact that in 2015 and the first quarter of 2016 the Bank recorded profit and noted the correction effort that continues. She also referred to the capital adequacy which remains at high levels and commented on the market confidence the bank is enjoying, which is made evident by the broad deposit base of the Bank. Reference was also made to the NPEs that follow a stabilisation and de-escalation process, according to a press release, issued by the bank.
With respect to new financing, Georgiadou said that Hellenic Bank has provided in 2015 substantial amounts of funding to the Cypriot economy, increasing in this way the Bank’s market share.
She stated that the strong balance sheet, capital adequacy and comfortable liquidity remain the main pillars on which Hellenic Bank will build growth, change and create value for its shareholders. The Board of Directors, she stated, gives particular attention to a change in culture.
"We are changing the way we think, the way we work, the way we behave, despite the rigidity in labour relations and the apparent absence of labour reforms in Cyprus reform programme," she added.
Referring to the digital transformation that the banking sector is currently undergoing, Georgiadou stressed that the ability of providing banking services any day any time and through customers’ mobile devices, is now a must. She also noted that competition comprises not only other local banks but also financial institutions abroad. Hellenic Bank, she said, “responds to the digital challenge with a very explicit and ambitious plan that aims to transform the Bank to the new era".
Closing her speech, Georgiadou stated that in 2016 the Bank will focus on the path of bold changes that have to be effected along with the implementation of the Group’s strategic targets.
Taking the floor Hellenic Bank’s CEO Bert Pijls stated that despite the challenges in Cyprus and in the region, 2015 has been a positive year for both Cyprus and Hellenic Bank.
Pijls indicated that during 2015 the Cyprus economy has returned to positive growth rates after four years of recession. He also stated that the adherence and commitment demonstrated regarding the implementation of the economic adjustment programme has been the cornerstone for return to growth. He indicated that economic growth continued during the first quarter of 2016 at an accelerating pace exceeding expectations.
At the same time, he emphasised that these positive developments do not justify complacency. He added that both fiscal discipline and reforms must continue in order to safeguard sustainable growth.
Pijls said that during 2015 Hellenic Bank has managed to record a profit of €13 million compared to €117.6million loss in 2014, even after booking all additional provisions of €71 million as recommended by the regulators. As a result, at December 2015 the Common Equity Tier 1 Ratio of the Group increased to 14.8% well above the increased regulatory requirements.
At the same time, the Bank’s NPE coverage ratio increased to 50% which is in line with the EU average. Mr. Pijls added that the bank’s liquidity remained healthy with a net loans to deposits ratio of 50%.
In his reference to the bank’s number one priority, Pijls stated that the percentage of NPEs dropped to 59% in December 2015 compared to 61% the previous quarter. In addition, he added that a total of €758 million loans were restructured during the year.
Moving on to the bank’s second most important objective, Pijls highlighted the fact that €377 million of new loans have been approved during the year, reflecting a much larger share of new lending than the bank’s market share.
In implementing its strategic targets, the CEO of Hellenic Bank stressed that the reduction of NPEs remains the key priority of the Group, while growing its loan book remains an important second priority. He added that while the bank will continue to finance credit worthy businesses and individuals locally, he remains skeptical of potential irrational lending practices that could arise given the highly overbanked market. As a result, the bank examines growth opportunities that exist in overseas markets based on the risk appetite and credit origination policies of the Group.
Pijls paid particular attention to the changes in the global banking environment as a result of the digital transformation of the sector. He stated that Hellenic Bank has already initiated the implementation of an ambitious development plan aimed at positioning the bank ahead of the competition and in line with international developments.
Finally, Pijls extended his appreciation to the shareholders and the board of directors of the group for their continued support. He also thanked the management and the staff for their commitment as well as the clients for their loyalty and custom.
On his part, the bank`s CEO Bert Pijls said «We have achieved a lot. We constantly improve ourselves and focus on the challenges that remain.”
Georgiadou reported briefly on the fact that in 2015 and the first quarter of 2016 the Bank recorded profit and noted the correction effort that continues. She also referred to the capital adequacy which remains at high levels and commented on the market confidence the bank is enjoying, which is made evident by the broad deposit base of the Bank. Reference was also made to the NPEs that follow a stabilisation and de-escalation process, according to a press release, issued by the bank.
With respect to new financing, Georgiadou said that Hellenic Bank has provided in 2015 substantial amounts of funding to the Cypriot economy, increasing in this way the Bank’s market share.
She stated that the strong balance sheet, capital adequacy and comfortable liquidity remain the main pillars on which Hellenic Bank will build growth, change and create value for its shareholders. The Board of Directors, she stated, gives particular attention to a change in culture.
"We are changing the way we think, the way we work, the way we behave, despite the rigidity in labour relations and the apparent absence of labour reforms in Cyprus reform programme," she added.
Referring to the digital transformation that the banking sector is currently undergoing, Georgiadou stressed that the ability of providing banking services any day any time and through customers’ mobile devices, is now a must. She also noted that competition comprises not only other local banks but also financial institutions abroad. Hellenic Bank, she said, “responds to the digital challenge with a very explicit and ambitious plan that aims to transform the Bank to the new era".
Closing her speech, Georgiadou stated that in 2016 the Bank will focus on the path of bold changes that have to be effected along with the implementation of the Group’s strategic targets.
Taking the floor Hellenic Bank’s CEO Bert Pijls stated that despite the challenges in Cyprus and in the region, 2015 has been a positive year for both Cyprus and Hellenic Bank.
Pijls indicated that during 2015 the Cyprus economy has returned to positive growth rates after four years of recession. He also stated that the adherence and commitment demonstrated regarding the implementation of the economic adjustment programme has been the cornerstone for return to growth. He indicated that economic growth continued during the first quarter of 2016 at an accelerating pace exceeding expectations.
At the same time, he emphasised that these positive developments do not justify complacency. He added that both fiscal discipline and reforms must continue in order to safeguard sustainable growth.
Pijls said that during 2015 Hellenic Bank has managed to record a profit of €13 million compared to €117.6million loss in 2014, even after booking all additional provisions of €71 million as recommended by the regulators. As a result, at December 2015 the Common Equity Tier 1 Ratio of the Group increased to 14.8% well above the increased regulatory requirements.
At the same time, the Bank’s NPE coverage ratio increased to 50% which is in line with the EU average. Mr. Pijls added that the bank’s liquidity remained healthy with a net loans to deposits ratio of 50%.
In his reference to the bank’s number one priority, Pijls stated that the percentage of NPEs dropped to 59% in December 2015 compared to 61% the previous quarter. In addition, he added that a total of €758 million loans were restructured during the year.
Moving on to the bank’s second most important objective, Pijls highlighted the fact that €377 million of new loans have been approved during the year, reflecting a much larger share of new lending than the bank’s market share.
In implementing its strategic targets, the CEO of Hellenic Bank stressed that the reduction of NPEs remains the key priority of the Group, while growing its loan book remains an important second priority. He added that while the bank will continue to finance credit worthy businesses and individuals locally, he remains skeptical of potential irrational lending practices that could arise given the highly overbanked market. As a result, the bank examines growth opportunities that exist in overseas markets based on the risk appetite and credit origination policies of the Group.
Pijls paid particular attention to the changes in the global banking environment as a result of the digital transformation of the sector. He stated that Hellenic Bank has already initiated the implementation of an ambitious development plan aimed at positioning the bank ahead of the competition and in line with international developments.
Finally, Pijls extended his appreciation to the shareholders and the board of directors of the group for their continued support. He also thanked the management and the staff for their commitment as well as the clients for their loyalty and custom.
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