Profit before provisions for Q2 2019 amounted to €33.8 million with after-tax profits reaching €44.2 million.
Hellenic reported a significant de-risk of the bank’s balance sheet after acquiring operations of the former Co-op bank and noted that the Non-performing Loans Index stood at 25.2%.
Hellenic CEO Yannis Matsis said: “Significant reduction in the balance sheet risk, sustained and enhanced profitability, as well as the strong capital position with the CET1 ratio at 18.5%, proving that the enlarged Hellenic Bank has a solid, sustainable and a long-term business model that protects its customer deposits and creates value for its shareholders.”
His statement also said that Hellenic Bank, now operating as a consolidated bank after the absorption of the Co-op was completed earlier this week.
“Focus is now on its growth strategy objective, which is based on a customer-centric approach,” said Matsis.
“We continue to finance the growth of the real economy by supporting our loyal customers, both individuals and households, as well as businesses.
At the same time, we are working systematically to improve the quality of our balance sheets, by improving our exposure to NPLs.”
Matsis claimed Hellenic is now the leading retail bank, with the largest branch network with a market share of 38.9% and 30.1% in household deposits and loans.
To achieve its growth goals Hellenic Bank relies on four pillars “its staff, investments in technology, further streamlining the bank’s operations, and complying with regulations regarding prudent risk-taking.
Hellenic said its biggest achievement of 2019, was integrating the systems and accounts of former co-op clients, which began a year ago, within the timeframes and budget.
The total of new loans approved in the first half of 2019 amounted to €387.6 million.
NPL provisioning coverage ratio stood at 64.0% on June 30, 2019 ((or 52.9% including the APSNPEs).
The Texas ratio4 (excl. APS-NPEs) was reduced to 84.2% while the cost to income ratio for the first six months stood at 65.1%.
Hellenic said it was in a “robust liquidity position, with a liquidity coverage ratio of 585%”. It is deposit funded, with deposits accounting for 89.9% of total assets.
The loans to deposits ratio was 42%, “enabling further business expansion.”
Source: Financial Mirror
