Hellenic Bank remains on track with its strategic goals

9M2021 Profit after tax of €21,0 million

• Solid Capital Position: CET1 ratio of 19,99%[1] and Capital adequacy ratio of 22,31%¹, significantly above minimum regulatory requirements
• NPEs ratio to gross loans at 14,5% (excl. APS²-NPEs), and Net NPEs³ to total Assets ratio at 1,9% (excl. APS²-NPEs)
• Lean management structure with new leadership to reshape and transform the Bank
• Continuing our investment on digitalization

Commenting on the Group’s financial results for the nine-month period ended 30 September 2021, Mr. Oliver Gatzke, the Group’s Chief Executive Officer, stated:

Despite the fact that COVID-19 is still determining the social and economic developments, during the first nine months of the year we have seen a strong economic rebound underpinned by the government support package.

During this challenging period, we supported the growth of the economy with €628 million of new loans and generated net interest income of €192,8 million and non-interest income of €74,2 million. Profit for the nine-month period ended 30 September 2021 amounted to €21,0 million. With a robust capital adequacy ratio of 22,3% and liquidity coverage ratio of 473% we remain committed in supporting our customers and investments in sectors that increase the competitiveness and productivity of the economy, such as health, education, energy (renewables), ICT, hospitality, transportation and shipping.

We now focus our efforts on the drastic improvement of the quality of our portfolio, through the resolving and deleveraging our NPEs which now stand at 14,5% (NPEs ratio, excl. APS-NPEs). Our Project Starlight is on track and with its conclusion, we will expedite the clean-up of our balance sheet to mid-single digit percentage of NPEs. We also note with satisfaction that the vast majority (more than 95%) of the borrowers that joined the loan moratorium scheme are performing well.

Another priority for us is to accelerate our transformation journey, to unlock our potential and achieve long term sustainable profitability. We reiterate our commitment to transform the Bank into a customer friendly organisation by improving our customer experience through digital onboarding, streamlining of our procedures and enhanced product scope. We want to enhance the profile of our loan book through healthy growth with a strong focus on ESG. Other key priorities include the management of our high cost base and our excess liquidity, and the implementation of a meritocratic HR strategy.

Finally, I would like to thank our shareholders for their continuous support and confidence shown to us, and assure them, that the whole team at Hellenic Bank remains fully aligned to achieve our goal for building a future-proof bank. I also extend my appreciation to our people for their resilience and hard work.

Other key highlights:

• 9M2021 Net interest income of €192,8 million
• 9M2021 Profit before impairment losses of €66,8 million
• 9M2021 Impairment losses of €43,6 million
• Total new lending approved during 9M2021 reached €628 million
• NPEs provision coverage ratio at 63,4% (excluding the NPEs covered by the APS agreement) as at 30 September 2021
• 9M2021 cost to income ratio of 75%
• Ample surplus of €6,1 billion
• Net loans to deposits ratio of 41,1%, enabling further business expansion.
• Solid, stable, primarily retail deposit base.