Hellenic Bank reports €284 million profit for the first nine months of 2024

Hellenic Bank has reported a €284 million profit for the first nine months of 2024, which was up by 28% YoY from continuing operations.

Announcing its results, the bank said its pro forma CET1 ratio of 28.3% and pro forma Total Capital ratio of 34.1% was “well above minimum regulatory requirements”, while with its NPE ratio at 2.4% (excluding the NPEs covered by the APS agreement), it has achieved an NPE provision coverage at of 74%.

In other key highlights, HB mentioned becoming a member of Eurobank Group, one of the leading banking groups in Greece and the region, its agreement with CNP Assurances on CNP Cyprus Insurance Holdings “to create the largest insurance operator in Cyprus”, the fact that it has a “solid customer base and major market shares in households (35% in deposits and 32% in loans)”.

Commenting on the Group’s financial results for the nine-month period ended 30 September 2024, CEO Michalis Louis stated: “Hellenic Bank's history deserves the utmost respect as a new chapter opens up to reinforce its already successful course, with the Eurobank Group now as its main shareholder. Armed with the Bank’s strong foundations, we are looking forward aiming to shape an even more dynamic future, with our customers at the epicentre of our strategy.”

He said strengthening customer relationships, modernising the bank’s organisational structure, and accelerating the digital transition are its main priorities. “Belonging to a larger regional financial Group will give us access to technical know-how and best practices and will significantly help the customer service quality we offer to our clients, while creating value for our people and our shareholders,” said Louis.

During the first nine months of 2024, he added, 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.

But he added, “At the same time, given the geopolitical challenges, we must remain vigilant. We are closely monitoring economic developments and the public sector’s financial management as we stand by the government’s prudent management efforts. Maintaining fiscal surpluses, reducing public debt, and further upgrading the Republic of Cyprus' credit rating must remain key objectives. The growth prospects for the Cypriot economy and our banking system are satisfactory but we need to maintain a healthy and competitive economy, and a reliable and stable legal and fiscal framework, to ensure there is stability and prosperity in our society.”

Louis concluded, “Our responsibility as a Bank does not stop at financial performance. We remain committed to sustainable development and social responsibility. We incorporate ESG (Environment, Society, Corporate Governance) criteria into our practices and investments, actively contributing to the creation of a more sustainable and inclusive society”.

In other key highlights:

• 9M2024 Net interest income of €456 million, up by 20% YoY, benefitting from high interest rates and liquid balance sheet.
• 9M2024 new lending of €705 million.
• 99,7% of new lending exposures post 2018 are performing.
• 9M2024 Cost to income ratio of 38,9%.
• Ample liquidity, with an LCR of 583% and with €5,3 billion placed at the ECB, benefiting the Bank from current interest rates.
• Net loans to deposits ratio of 39% on 30th September 2024, enabling further business expansion.