Hellenic Bank reports solid performance in Q1 2023

Oliver Gatzke, CEO, Hellenic Bank Group says the financial results for the first three months of the year demonstrate that Hellenic Bank started 2023 on a strong footing.

Commenting on the Group’s financial results for the three-month period ended 31 March 2023, Gatzke, stated, “2023 started on a strong footing for Hellenic Bank as we recorded a solid first quarter, by generating profits of €69.7 million, mainly due to higher income and cost rationalisation. This performance demonstrates the resilience of our business model and our focus to continue to unlock value, supporting our customers and subsequently the growth of the economy.”

He also noted that the first quarter of 2023 was marked by turbulent financial market conditions both in the US and in Europe but added, “Hellenic Bank remained unscathed by these developments, mainly due to its strong capital position (Capital adequacy ratio of 25.1%) and ample liquidity (Liquidity Coverage Ratio of 454%).”

Gatzke said Hellenic Bank’s robust financial position enables it to continue supporting its retail and business customers by providing competitive, tailor-made, credit products and services.

“New lending during the first quarter of 2023 reached €315 million (up by 17% YoY), increasing our market share on new lending to 35% until April 2023 (28% in 2022). Net interest income reached €108,1 million, demonstrating an increase of 74% compared to 1Q2022, which is primarily a result of the global higher interest rate environment. The adjusted cost-to-income ratio stands at 40%, which is in line with the Bank’s medium-term objectives. The Bank continues to focus on its cost management initiatives to compensate for the unbated growing of labour related expenses, i.e. COLA and automatic salary increments,” the CEO continued.

Other 1Q2023 highlights for Hellenic Bank Group, meanwhile, included the successful pricing of a new €200 million Tier 2 Subordinated Notes under its EMTN Programme on 8 March, 2023.

“The total orderbook was almost 4.5 times oversubscribed. The high participation from investors demonstrates confidence in the Bank and re-affirms market’s appetite for the Bank’s creditworthiness,” Gatzke said.

He also noted that on 30 March, Hellenic Bank announced the completion of Project Starlight, significantly de-risking the Bank’s balance sheet and reducing its non-performing exposures to 3.4% (Exc. Asset Protection Scheme NPEs).

“Following the recent inclusion of Cypriot legal entities and physical persons in the US/UK sanctions’ lists, I would like to reiterate the Bank’s full adherence to sanctions issued by the European Union and the United States as well as UK, applying a zero-tolerance policy through rigorous and strict controls and measures,” Gatzke noted.

He continued, “Overall, the encouraging results and the completion of our achievements of 1Q2023 give us confidence that we are on the right track delivering profit before tax of higher than €200 million in 2023. I am very thankful and proud of our staff that remains focused on supporting customers, executing our demanding transformation plan, and continuing to create value for shareholders.”

Other key highlights reported by Hellenic Bank Group, meanwhile, include 1Q2023 Net interest income of €108,1 million, up by 74% YoY, mainly due to rising interest rates; NPEs provision coverage ratio (excluding NPEs covered by the APS agreement) at 51% as at 31 March 2023; New lending momentum with 1Q2023 of €315 million, up 17% YoY; Cost to income ratio of 40% and staff costs down by 24% YoY, mainly due to VEES in December 2022; Ample liquidity, with an LCR of 454% and with €6.0 billion placed at the ECB, benefiting the Bank as interest rates rise; and Net loans to deposits ratio of 38.5%, enabling further business expansion, an announcement from the Group noted.