Hellenic Bank announced €69.7 million profit for the first quarter of 2023, on Friday.

According to a press release, the Bank holds a Solid Capital Position with a CET1 ratio of 19.3% and Capital adequacy ratio of 25.1%, significantly above minimum regulatory requirements.

The Bank also notes that its NPE ratio was at 9.3% while excluding the NPEs covered by the APS agreement was at 3.4%. Regarding Project Starlight completion in the first quarter of 2023, Hellenic Bank notes that it heralds a new era for the Bank, with a securitization of around €0.8 billion of NPEs and sale of the APS Debt Servicer.

Hellenic Bank also highlights the Successful Tier 2 Subordinated Notes issuance of €200 million in March 2023, noting that it attracted significant international investor interest.

Commenting on the Group’s financial results for the three-month period ended 31 March 2023, Oliver Gatzke, the Group’s Chief Executive Officer, stated that 2023 started on a strong footing for Hellenic Bank, "as we recorded a solid first quarter, by generating profits of €69,7 million, mainly due to higher income and cost rationalisation".

Gatzke also noted that Hellenic Bank remained unscathed by the turbulent financial market conditions in the US and in Europe, mainly due to its strong capital position (Capital adequacy ratio of 25.1%) and ample liquidity (Liquidity Coverage Ratio of 454%). "Our robust financial position enables us to continue supporting our retail and business customers by providing competitive, tailor made, credit products and services", he said.

New lending during the first quarter of 2023 reached €315 million, up by 17% YoY, increasing the Bank's market share on new lending to 35% until April 2023, compared to 28% in 2022. Net interest income reached €108.1 million, demonstrating an increase of 74% compared to 1Q2022, which is primarily a result of the global higher interest rate environment. The adjusted cost-to-income ratio stands at 40%, which is in line with the Bank’s medium-term objectives.

"Following the recent inclusion of Cypriot legal entities and physical persons in the US/UK sanctions’ lists, I would like to reiterate the Bank’s full adherence to sanctions issued by the European Union and the United States as well as UK, applying a zero-tolerance policy through rigorous and strict controls and measures" the CEO noted.

He concluded that, overall, "the encouraging results and the completion of our achievements of 1Q2023 give us confidence that we are on the right track delivering profit before tax of higher than €200 million in 2023. I am very thankful and proud of our staff that remains focused on supporting customers, executing our demanding transformation plan, and continuing to create value for shareholders."