6M2021 Profit after tax of €21,0 million
- Strong Capital Position: CET1 ratio of 19,68%[1] and Capital adequacy ratio of 22,00%1, significantly above minimum regulatory requirements
- De-risked balance sheet: NPEs ratio to gross loans at 15,1% (excl. APS2-NPEs), and Net NPEs3 to total Assets ratio at 2,2% (excl. APS2-NPEs)
- A new management structure lead by CEO to reshape and transform the Bank to enhance stakeholder value
- Continuing our investment on digitalization
Commenting on the Group’s financial results for the six-month period ended 30 June 2021, Mr. Oliver Gatzke, the Group’s Chief Executive Officer, stated:
In the first half of 2021, still in pandemic-driven mode, Hellenic Bank performed well, making solid progress towards our strategic goals. The increased economic activity of the first six months was underpinned by the continued government response, comprising of a package of budgetary, liquidity and policy measures to sustain the health system, support businesses and secure jobs.
The solid performance of the Bank continued, delivering an after-tax profit of €21,0 million. With a robust capital adequacy ratio of 22% and liquidity ratio of 510% we successfully continue supporting the economy to withstand the headwinds, throughout the first half of the year. We continued supporting our viable clients and participated in all state support schemes for businesses and households. During these challenging times, we granted €388 million of new loans and generated net interest income of €129,7 million and non-interest income of €53,8 million. Equally important for us is the improvement of the quality of our portfolio, through the resolving and deleveraging our NPEs which now stand at 15,1% (NPEs ratio, excl. APS-NPEs). Despite the uncertainty of the COVID-19 pandemic, we are moving forward with a plan to clean up our balance sheet both via organic and inorganic solutions. We note with satisfaction that the vast majority (more than 95%) of the borrowers that joined the loan moratorium scheme are performing well.
Following my official appointment in July 2021, I realised that a lot has been accomplished so far, in order to modernise and reshape the Organisation. However, it is of vital importance to accelerate our transformation journey, to unlock our potential and achieve sustainable profitability. We remain committed in transforming the Bank into a customer centric organisation by improving our customer experience through digitalisation, 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 (Environmental, Social and Governance). 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 sincerely thank our shareholders for their continuous support and confidence shown to us, and assure them, that the whole team at Hellenic Bank remains fully committed to achieve its goals and strategic objectives. I also extend my appreciation to our people for their strong commitment and hard work during these difficult circumstances.
Other key highlights:
- 6M2021 Net interest income of €129,7 million
- 6M2021 Profit before impairment losses of €52,3 million
- 6M2021 Impairment losses of €29,3 million
- Total new lending approved during 6M2021 reached €388 million
- NPEs provision coverage ratio at 59,4% (excluding the NPEs covered by the APS agreement) as at 30 June 2021
- 6M2021 cost to income ratio of 71,5%
- Robust liquidity position, with a Liquidity Coverage Ratio of 510% and a liquidity surplus of €6,1 billion
- Net loans to deposits ratio of 41,5%, enabling further business expansion.
- Solid, stable, primarily retail deposit base.
