• 1Q 2024 profit of €93 million

• Solid Capital Position: Pro forma CET1 ratio of 24,62% and pro forma Total Capital ratio of 30,2%, significantly above minimum regulatory requirements

• De-risked balance sheet: NPE ratio at 2,5% with NPE provision coverage at 42%

• Agreement to acquire CNP Cyprus Insurance Holdings to create the largest insurance operator in Cyprus

• Framework agreement for the renewal of the staff collective agreement

• 1Q2024 new lending of €208 million

• 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, Mr. Antonis Rouvas, the Group’s Interim Chief Executive Officer, stated:

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.

2024 marked two landmark achievements for our Group:

Firstly, following extensive negotiations and the mediation proposal of the Minister of Labour and Social Insurance, there is a 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.

The second but equally important development, 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. This transaction fits perfectly with our business model and offers significant synergies and growth potential, enhancing the products and services offered to our broad customer base. 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. 

Net interest income for the 1Q2024 reached €151 million, up 40% YoY, while non-interest income amounted to €28,3 million, up by 6% YoY. With a pro forma total Capital Ratio of 30,2%, well above the regulatory requirements, and ample liquidity (Liquidity Coverage Ratio of 580%), 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. Further reduction of our NPE’s ratio remains a priority for us.

 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. Our goal is to further enhance the profile of our loan book through healthy and sustainable growth with a strong focus on ESG (Environmental, Social and Governance). Proof of our commitment came from the official lips of the Government where recently we were awarded the “Gold Environment Protector Award” at the Cyprus Environmental Awards for Organizations for developing and implementing environmentally friendly policies and practices, contributing to the protection of the environment. 

I wish to extend my appreciation to all my colleagues for their strong commitment and effort and thank them for remaining focused towards supporting our customers, executing our demanding strategic and transformation plans, and continuing to create value for all stakeholders. Finally, I would like to thank our Board of Directors and shareholders for their continuous support and confidence shown to us.

Other key highlights:

• 1Q2024 Net interest income of €151 million, up by 40% YoY, benefitting from interest rates and liquid balance sheet, mainly driven by CB placements
• 99,7% of new lending exposures post 2018 are performing
• 1Q2024 Cost to income ratio of 33%
• 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 of 40,3%, enabling further business expansion.