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HB: Losses €17.8 million for 9m 2017

01/12/2017 10:23
The Hellenic Bank has announced a profit of €5.1 million after tax for the third quarter of 2017, recording the first profitable quarter after having reported losses for three continuous quarters.

Total loss for the first nine months of this year is €17.8 million, mainly because of increased loan impairments at the second quarter of 2017, a bank press release said.

The group noted that it continues to enjoy a strong capital position as the Common Equity Tier 1 Capital is at 14.45% over the minimum regulatory threshold of 9.25% and the Capital Adequacy Index is at 18.12% over the minimum regulatory threshold of 12.75%.

At the same time it is noted that the level of non performing facilities was reduced for the 8th quarter in a row to €2,327 million as of September 30, 2017, dropping by 7% from €2,504 million on December 31, 2016. Non performing facilities were at 55.7% of total loans down from 58.2% on December 31, 2016.

Coverage ratio reached 61.4% on September 30, 2017 up from 54.9% at the end of 2016, while taking into consideration tangible collateral of non-performing facilities it stands at 115.4%.

According the bank, during the first nine months of 2017 a total of €334.5 loans were approved, while €381 million worth of restructurings were completed.

The Bank also said that it announced a voluntary redundancy plan, which it hopes will contribute to a reduction of personnel costs and an improvement of the credit institution`s efficiency.

Moreover, a new organisational structure will be introduced aiming to better serve customers and for immediate and effective communication purposes.

The group said it "continues to maintain strong liquidity," noting that the index of net loans to deposits ratio was on September 30, 2017 at 47.9%, allowing further business expansion.

Total customer deposits came to €5.7 billion while gross loans reached €4.2 billion. The bank`s share of facilities was at 7.8% and the deposits share was at 11.9%.

In a written statement the group`s CEO Ioannis Matsis said that "during the 3rd quarter of 2017 we have made further progress in the implementation of our strategic priorities," highlighting that the group`s capital position "remains strong."

He added that the bank has made significant progress in the preparation process for the introduction of the International Financial Reporting Standard 9 and it is estimated that its impact will be between €25 - €50 million of its total capital on January 1, 2018, on the basis of June 30, 2017.