Nine-month 2019 profit after tax of €89.4 million for Hellenic Bank

The robustness and solidity of the enlarged Hellenic Bank is demonstrated by its nine-month financial results for 2019, according to a press release presenting profit after tax of €89.4 million.
 
It also notes that it is a leading retail bank on the island with the largest branch network and with market shares of 38.5% and 29.8% in household deposits and loans, respectively.
 
The press release says that the bank has strong capital position with a CET1 ratio of 19.0% and Capital adequacy ratio of 21.5%, significantly above minimum regulatory requirements, adding that there is a significantly de-risked balance sheet, since the NPEs ratio was at 25.2% (or 31.8% incl. the APS2-NPEs), and the Net NPEs3 to Assets ratio at 4.0% (or 6.6% incl. the APS2-NPEs).
 
Hellenic Bank CEO Yannis Matsis says in a statement that “our nine-month 2019 financial results along with the resulting capital position demonstrate the robustness and solidity of the enlarged Hellenic Bank,” adding that “our business model is shaped to adapt with the rapid changes taking place, especially in the digital domain.”
 
“Our plans aim in maintaining a sustainable profitability and in generating solid returns to our shareholders,” he adds.
 
Matsis points out that, “following the successful integration of the ex-CCB business, we can focus all our efforts to grow the Bank and to enhance the franchise, within a sound control and governance framework.”
 
“We continue proving credit in a growing economy, by supporting all our viable clients, individuals, households and businesses alike. Approved lending during 9M2019 reached €572.5 million, thus improving the Bank’s loan market share from 19.5% as at 31st December 2018 to 21.1% as at 30th September 2019. At the same time, we are intensively working on normalizing our balance sheet considering both organic and non-organic options for resolving the NPEs,” he says.
 
He adds that, “to achieve our goals, we rely and invest heavily on 2 areas: 1. Our staff, which is the driving force of the Bank, aiming to further improve productivity and upgrade their wellbeing, and, 2. Our Technology/Digitalization, aiming to radically transform clients digital experience and also simplify their time-consuming interaction with the Bank.”
 
The press release includes other key highlights, such as profit after taxation of €30.2 million, total new lending approved during 9M2019 reached €572.5 million, NPEs provision coverage ratio at 64.8% as at 30 September 2019, (or 53.4% including the APS-NPEs), Texas ratio4 (excl. APS-NPEs) reduced to 82.1%, the cost to income ratio for 9M2019 stood at 67.3%, the robust liquidity position with a Liquidity Coverage Ratio of 537%, deposit funded with deposits accounting for 89.6% of total assets, and a loans to deposits ratio of 41.5%, enabling further business expansion.
 
The Hellenic Bank says that, “with the successful completion of the integration of the CCB business, Hellenic Bank has embarked on a new era, determined to continue its pivotal role in the growth of the real economy, supporting creditworthy Cypriot businesses and households with a comprehensive range of quality banking services.”
 
“As the biggest retail bank on the island, its mission is to provide excellent services as well as competitive products and solutions to its enlarged customer base. Its robust liquidity allows the exploitation of opportunities in various sectors of the economy and maintaining its focus on organic growth,” it notes.
 
It adds that “the focus of new loans will continue to be to companies that increase the competitiveness and productivity of the country, such as in the sectors of retail and commercial activities, manufacturing and tourism” and that, “at the same time, loans to private sector are geared toward mortgages, small loans to new customers and supporting current clients who are deemed viable, and moreover we are examining the deployment of excess liquidity internationally.”