24/05/2016 15:45
Hellenic Bank posted lower profits in Q1 of 2016, highlighting the volatility of the local economic environment and the challenges that remain ahead.
The Bank’s profit for the first quarter of 2016 decreased to €0.7 million compared to profit of €12.3 million the corresponding quarter of last year. The profit attributable to equity holders fell to €0.3 mil. from €11,9 mil the first quarter of 2015.
The decrease in profits is due to increased provisions for bad debts and due to a drop in net interest income.
The bank continued to support the economic recovery by approving €84 million of new exposures in the first quarter of 2016. During the first quarter of 2016, the Bank completed further restructurings of lending exposures of €160 million. Overall, the Bank is performing well, particularly given the current environment, demonstrating the potential power of the Group once it is unshackled from the high level of NPEs.
NPEs
Addressing the Bank’s Non-performing exposures is of utmost importance and a top priority for Management. Non performing exposures (NPEs) recorded a second quarter on quarter improvement. As at 31st March 2016, NPEs decreased by 3% compared to the previous quarter, while NPEs ratio reached 58% while coverage ratio stood at 49%, in line with the EU average.
Despite moving into a low interest rates environment Hellenic Bank’s net interest margin increased from 2% at year end to 2,1% at 31 March 2016. The improvement is the result of the continued repricing of the deposits and the income generated from the new exposures.
The Group maintains capital adequacy ratios, well above the minimum required by the relevant Regulatory Authorities. As at 31st March 2016, the Common Equity Tier 1 (CET 1) ratio stood at 13,8%, compared to the minimum CET 1 ratio set by the ECB for Hellenic Bank of 11,75%. At the end of 1Q2016, the Group’s Capital Adequacy Ratio was 17% and Tier 1 ratio was 16,7%.
The Group’s liquidity remained on a sound and healthy level while the net loan to deposits ratio stood at 51% in 1Q2016. On 31st March 2015, total deposits amounted to €6 billion while total gross loans reached €4,3 billion.
Main Targets
Addressing the high level of NPEs and growth remain the top two key priorities of the Group.
Hellenic Bank is focusing on supporting and restructuring cooperative and viable customers while at the same time decisive actions shall be taken for non-viable and non-cooperative customers. For these cases Hellenic Bank will demonstrate zero tolerance and will make full use of available tools.At the same time Hellenic Bank is providing new lending to the local economy and is exploring opportunities to deploy its liquidity abroad.
The Bank’s profit for the first quarter of 2016 decreased to €0.7 million compared to profit of €12.3 million the corresponding quarter of last year. The profit attributable to equity holders fell to €0.3 mil. from €11,9 mil the first quarter of 2015.
The decrease in profits is due to increased provisions for bad debts and due to a drop in net interest income.
The bank continued to support the economic recovery by approving €84 million of new exposures in the first quarter of 2016. During the first quarter of 2016, the Bank completed further restructurings of lending exposures of €160 million. Overall, the Bank is performing well, particularly given the current environment, demonstrating the potential power of the Group once it is unshackled from the high level of NPEs.
NPEs
Addressing the Bank’s Non-performing exposures is of utmost importance and a top priority for Management. Non performing exposures (NPEs) recorded a second quarter on quarter improvement. As at 31st March 2016, NPEs decreased by 3% compared to the previous quarter, while NPEs ratio reached 58% while coverage ratio stood at 49%, in line with the EU average.
Despite moving into a low interest rates environment Hellenic Bank’s net interest margin increased from 2% at year end to 2,1% at 31 March 2016. The improvement is the result of the continued repricing of the deposits and the income generated from the new exposures.
The Group maintains capital adequacy ratios, well above the minimum required by the relevant Regulatory Authorities. As at 31st March 2016, the Common Equity Tier 1 (CET 1) ratio stood at 13,8%, compared to the minimum CET 1 ratio set by the ECB for Hellenic Bank of 11,75%. At the end of 1Q2016, the Group’s Capital Adequacy Ratio was 17% and Tier 1 ratio was 16,7%.
The Group’s liquidity remained on a sound and healthy level while the net loan to deposits ratio stood at 51% in 1Q2016. On 31st March 2015, total deposits amounted to €6 billion while total gross loans reached €4,3 billion.
Main Targets
Addressing the high level of NPEs and growth remain the top two key priorities of the Group.
Hellenic Bank is focusing on supporting and restructuring cooperative and viable customers while at the same time decisive actions shall be taken for non-viable and non-cooperative customers. For these cases Hellenic Bank will demonstrate zero tolerance and will make full use of available tools.At the same time Hellenic Bank is providing new lending to the local economy and is exploring opportunities to deploy its liquidity abroad.
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