Hellenic Bank reported good financial results for 2022 with a profit of €24 million (compared to a €12 million loss in 2021), confirming the progress made in the transformation to a customer- and technology-focused bank, while the solid performance continued in the first quarter of 2023, demonstrating that we are on the right track, Hellenic Bank Group CEO Oliver Gatzke said on Wednesday. 

Gatzke, who was addressing the Bank's 49th Annual General Meeting, added that Hellenic Bank's capital position remains strong with a capital adequacy ratio of 25% as of 31 March 2023, while maintaining “ample liquidity", and expressed confidence that the evolving interest rate environment will continue to support the bank's financial performance in the coming years. 

"We expect pre-tax profit for 2023 to be higher than €200 million, mainly due to changes in interest rates and improved revenues, driven by the insurance and card activities, and an improved cost structure following the successful voluntary early exit programme completed in November 2022", he added.

In relation to the bank's three-year transformation plan, Gatzke said this was "well underway", adding that the aim was to improve the customer experience and increase revenue and efficiency.

He said that in May 2023, 47% of transactions were conducted through Online Banking, 43% through ATMs and only 10% of transactions were conducted in branches.

In addition, the Chairman of Hellenic Bank’s Board of Directors, Euripides Polycarpou, stressed that the aim remains to implement the strategic objectives to maximize the bank’s value for shareholders, employees, partners and customers, and referred to the Bank's evolution over the last 8 years from a "small sized bank" to bank with a leading role in the Cypriot market.

"At that time, the number of our customers was around 180 thousand, while with the integration of the former Co-operative in 2018 our customer base multiplied, exceeding 550,000," he added.

He also said that the market share was 13.8% in terms of deposits and only 7.1% in terms of loans, while today, the market share in household deposits stands at 38.5% and in new household loans at 35%, making Hellenic Bank “one of the key drivers of supporting the growth of the Cypriot economy."

Polycarpou also said that there was an inverse development of NPLs, “the biggest problem that the Cypriot banking system had to face on a broader basis" and added that in 2013 the NPL ratio at Hellenic Bank exceeded 56%, while "today, with persistent efforts and organic and non-organic solutions, this ratio has dropped to just 3.4%."