Hellenic Bank, Cyprus' second largest lender, posted a net profit of €284 million in the nine months ending at end-September 2024, marking an annual increase of 28%, while boosting its capital ratios by 4 percentage points, due to high organic capital generation as a result of high profitability amid the favourable interest rate environment.

The bank on a quarterly basis marked a slight decrease in net interest income in the third quarter, reflecting the ECB rate cuts. Moreover the bank marked an annual 22% drop in new lending in the nine months of 2024 due to high interest rates which affected loan demand.

In the bank’s first results as a subsidiary of the Greek Eurobank Group, Hellenic Bank’s new Chief Executive Officer, Michalis Louis said in a statement that “a new chapter opens up to reinforce its already successful course, with the Eurobank Group now as its main shareholder.”

“During the first nine months of 2024, Hellenic Bank's performance was strong, despite global challenges. By maintaining a strong capital base and surplus liquidity, we are in a position to support the growth of the economy, supporting customer needs, both individual and business customers,” he said.

According to the bank’s financial results, net interest income (NII) in the nine months of 2024 amounted to €455.6 million, up by 20% year on year, whereas NII dropped marginally to €151 million in the third quarter from €151 million in Q2.

Non-interest income rose by 15% year on year reaching €98.1 million from €85 million in the nine months of 2023.

CET1 capital ratio reached 26.7% by September 2024 and total capital ratio stood at 32.51%, marking an annual increase of 3.89% and 4.14% respectively compared with the respective period of last yar.

Total expenses in the nine months of 2024 amounted to €216 million, up by 11% year on year, of which staff costs amounted to €99.4 million representing 46% of total expenses.

Cost to income ratio stood at 38.9% in the nine months of 2024 compared with 41.7% the respective period of last year.

According to the bank, new lending in the nine months of 2024, dropped by 22% year on year to €705 million from €900 million in the respective period of last year.

Total loans in the end of September 2024 amounted to €6 billion compared with €6.16 billion in the respective period of last year.

Non-performing exposures as per the EBA directive amounted to €404 million at end-September 2024 from €464 million in the end of 2023, whereas excluding loans covered by the Asset Protection Scheme, NPEs amounted to €100 million.

NPE ratio at end-September stood at 6.7% of total loans, while excluding the APS amounted to 2.6%.

Customer deposits at end-September 2024 stood at €14.9 billion from €15.3 billion in the end of 2023, the bank said.

At the end of September, the bank’s Liquidity Coverage ratio stood at 583%, with placements to the Eurorystem amounting to €5.3 billion, “benefiting from the current interest rates,” Hellenic bank said.

The bank’s total assets in the end of September amounted to €17.61 billion compared with €20.06 billion reflecting the repayment of funding from the ECB via the Targeted Long-Term refinancing operations.