Hellenic Bank reports €189M in profits for first half of year
Source: in-cyprus.com
Hellenic Bank reported a profit of €189 million for the first half of 2024, representing an 18% increase year-on-year.
The bank also announced a net interest income of €304 million for the same period, benefitting from high interest rates and a strong liquidity position in its balance sheet, with 99.7% of new lending after 2018 being serviced.
Additionally, the bank’s cost-to-income ratio, adjusted for contributions to the Deposit Guarantee Scheme, the Special Tax on Credit Institutions, and transformation costs, stood at 35% for the first half of 2024, with a Liquidity Coverage Ratio (LCR) of 517% and €5.3 billion placed with the European Central Bank, allowing the bank to capitalise on rising interest rates.
The bank’s net loans-to-deposits ratio as of June 30, 2024, was 39.8%, indicating further business expansion opportunities.
Commenting on the Group’s performance for the half-year ended June 30, 2024, Antonis Rouvas, Transitional Group CEO, stated:
“Hellenic Bank’s performance in the first half of 2024 was solid, with a profit after tax of €189 million, primarily driven by higher net interest income. These results demonstrate the resilience of our business model despite ongoing challenges and uncertainty arising from the geopolitical and economic environment.
Net interest income for the first half of 2024 reached €304 million, a 29% increase year-on-year, while non-interest income stood at €57 million. With an Adjusted Total Capital Ratio of 32.2%, significantly above the supervisory requirements, and excess liquidity (LCR) of 517%, we remain in a very strong position and fully committed to supporting our customers.
New lending in the first half of 2024 reached €472 million as we continue to provide competitive and tailored products.
At the same time, we remain vigilant for potential risks that could impact our performance, given the challenges in the economic and operating environment and the increased geopolitical risk. Further reducing our non-performing loans remains a priority.
In July 2024, we signed a Sale and Purchase Agreement with CNP Assurances to acquire its subsidiary, CNP Cyprus Insurance Holdings Limited, operating in Cyprus and Greece. This acquisition will enable Hellenic Bank to significantly strengthen its insurance activities and become a leading financial group with a strong presence in both the banking and insurance sectors in Cyprus.
Upon completion, Hellenic Bank is expected to hold a leading position in the Cypriot insurance market. Simultaneously, we successfully resolved a long-standing issue with ETYK by agreeing on a framework for the renewal of the collective agreement, allowing us to focus on implementing our Strategic Plan and transformation initiatives, prioritising a customer-centric approach and accelerating digital transformation.
Furthermore, the decision of Eurobank, one of the largest financial institutions in Greece, to invest in Hellenic Bank, represents a vote of confidence in our business model, franchise, and the Cypriot economy. With the successful completion of the mandatory public offer for acquisition, securing an immediate total stake of 55.9%, a new era begins for Hellenic Bank.
The significant strengthening of the Bank’s key figures has been recognised by major rating agencies. In July 2024, Fitch Ratings upgraded the Bank’s credit rating to BBB-, while in June 2024, Moody’s Ratings placed all of Hellenic Bank’s ratings under review for a potential upgrade.”
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