Hellenic Bank announced an after-tax profit of €93 million for the first quarter of 2024, compared to a profit of €69.7 million for the corresponsive quarter of 2023.

In an announcement regarding its financial results for the quarter that ended 31 March 2024, Hellenic Bank said it has a solid capital position with a pro forma Common Equity Tier 1 (CET1) ratio of 24.62% and a pro forma Total Capital Ratio of 30.2%, which is "significantly above the minimum regulatory requirements".

It also reports that it has de-risked its balance sheet, reducing its NPL ratio at 2.5%, with NPL provision coverage at 42%.

Return on tangible equity (ROTE) on an annual base, was 25% in Q1 2024, while net book value per share (TBVPS) was up by 34%, y-o-y.

New lending amounted to €208 million for Q1 2024, while total net income for Q1 2024 amounted to €179.3 million, up 33% compared to €134.9 million in Q1 2023, mainly due to an increase in net interest income, net gains on disposal and revaluation of foreign currencies and financial instruments and other income.

Net interest income reached €151 million, up 40% y-o-y, with total expenses amounting to €71.1 million, up by 11% compared to €64.3 million for 1Q2023, mainly driven by higher staff costs and administrative and other expenses. Total expenses for 1Q2024 increased by 9% compared to €65.3 million in 4Q2023, mainly driven by higher staff costs and administrative and other expenses.

According to HB, 99.7% of new lending exposures post 2018 are performing and cost to income ratio is at 33%. The Bank has ample liquidity, with an LCR of 580% and with €5.1 billion placed at the ECB, benefiting the Bank from current interest rates.

Net loans to deposits ratio is at 40.3%, enabling further business expansion.

The Bank reports that is retail focused, with a solid customer base and major market shares in households (36% in deposits and 33% in loans).

Commenting on the Group’s financial results for the three-month period ended 31 March 2024, Antonis Rouvas, the Group’s Interim Chief Executive Officer, stated that 2024 started on a strong footing for Hellenic Bank, generating profits of €93.3 million for the 1Q2024, mainly due to higher income. “This performance demonstrates the resilience and robustness of our business model, despite the continuing challenges and uncertainty rising from the geopolitical and economic environment”, he said.

He added that 2024 marked two landmark achievements for the Group. Firstly, he mentioned the framework for an agreement between the Bank and ETYK for the renewal of the collective agreement. “We can now focus on delivering our strategic plan together with our Bank’s transformation and continuous innovation, prioritising customer-centricity and accelerating digital transformation”, he noted on that.

The second but equally important development, said Rouvas, relates to the Bank’s agreement with CNP Assurances regarding its subsidiary CNP Cyprus Insurance Holdings Limited, operating in Cyprus and Greece. “This will allow Hellenic Bank to significantly strengthen its insurance operations and become a leading financial services group with a strong presence in the financial and insurance sectors in Cyprus”, he noted, adding that this transaction fits perfectly with HB’s business model and offers significant synergies and growth potential, enhancing the products and services offered to its broad customer base. According to Rouvas, upon completion, Hellenic Bank is expected to have a leading position in the insurance market in Cyprus, with market shares of c.30% and c.23% in life and general sector, respectively. 

Commenting on the Bank’s results, he said that “we are well positioned and fully committed to continue supporting our retail and business customers. At the same time, we remain watchful of potential risks that could adversely affect the Bank's performance, due to the challenging economic and operational environment and elevated geopolitical risks”, adding that further reduction of the Bank’s NPE’s ratio remains a priority.

“Our strong commitment that corporate responsibility, sustainability, and green growth are fundamental pillars of the overall operation of Hellenic Bank, is reflected in the revised ESG Strategy, which became integral part of the Bank's Strategic Plan, incorporating specific objectives at all levels of our operations”, he mentioned, noting that the goal is to further enhance the profile of the Bank’s loan book through healthy and sustainable growth with a strong focus on ESG (Environmental, Social and Governance).