Hellenic Bank announces €383m profit for 2024

Hellenic Bank (HB) just announced a €383 million profit for 2024, as its CEO Michalis Louis deeming the year a landmark year for Hellenic Bank in terms of financial performance and ownership structure.

Indeed, after becoming a member of Eurobank Group, a leading banking group in Greece and the region, HB said the merger "will create one of the largest financial institutions in Cyprus". Meanwhile, its acquisition of CNP Cyprus Insurance aims to place it at the top as the largest insurance operator in Cyprus.

Hellenic said it had a solid capital position, with a CET1 ratio of 28.7% and Total Capital ratio of 32.2%, well above minimum regulatory requirements. It also referenced its de-risked balance sheet, with the non-performing exposures (excluding the NPEs covered by the APS agreement) ratio closing at 2.4% and NPE coverage at (excluding the NPEs covered by the APS agreement) 63%.

Commenting on the results for the year ended 31 December 2024, Hellenic Bank CEO Michalis Louis said: "2024 was a landmark year for Hellenic Bank in terms of financial performance and ownership structure. The Bank achieved strong financial performance in 2024 with a net profit of €383 million (up 10% Y-o-Y adj. for discontinued operations) and a return on tangible equity of 23%. The balance sheet remains solid, with a total capital ratio of 32% and a liquidity coverage ratio of 519%, while the NPE ratio has reduced to 2.4%. New lending during 2024 of €1.1 billion demonstrated our commitment towards supporting the domestic economy and serving our clients."

As he said, Eurobank Group currently owns 93.5% of the Bank’s share capital and is expected to increase its ownership to 100%, following a mandatory tender offer and a squeeze out process during the first half of 2025. "Then, and subject to regulatory approvals we, will proceed with the merger of Hellenic Bank with Eurobank Cyprus creating one of the largest financial institutions in Cyprus. The business models of the two banks are complementary and will serve in further enhancing our customer products and our customer service."

Further, the bank expects to complete the acquisition of CNP Cyprus Insurance Holdings during the first quarter of 2025, said Louis. "This is an important milestone for the Bank as we establish ourselves as one of the leading financial services institutions in Cyprus focusing on our customers, our people and the society we operate."

He added, "Being part of the Eurobank Group, one of the leading banking groups in Greece and the region with assets exceeding c.€100 billion, we aim to grow our business and to become the best bank in Cyprus through enhancing customer relationships and offering excellent customer service. We will strive to continue supporting the Cypriot society contributing to economic growth, ensuring the sustainability of the banking system and the welfare of our customers".

He went on to thank his colleagues for a "great year", concluding: "We are excited to drive the Bank forward as a member of the Eurobank Group for the benefit of all our stakeholders."

In other key highlights:

• FY2024 Net interest income of €599 million, up by 12% YoY
• FY2024 new lending of €1.075 million
• 99,6% of new lending exposures post 2018 are performing
• FY2024 Cost to income ratio of 40%
• Ample liquidity, with an LCR of 519% and with €5,6 billion placed at the ECB
• Net loans to deposits ratio of 36,6% on 31st December 2024, enabling further business expansion