Hellenic bank registers profit in First Quarter
The Hellenic Bank Group concluded the first quarter of 2015 (Q1-2015) with a profit of €12 million after provisions, compared to losses of €26 million during the first quarter of 2014.
According to a press release issued by the Group, Q1-2015, impairment losses and provisions to cover credit risk amounted to €13 million. Non-performing exposures, which accounted for 60% of the total gross loans, are closely monitored, aiming fair and viable restructurings.
The first quarter of 2015 was marked by increasing deposits, comfortable liquidity and strong capital adequacy. During Q1-2015, Hellenic Bank’s deposits increased by 4%, totalling €6,6 billion. The Group’s capital adequacy ratio of 17,9% enables it to take advantage of the opportunities for growth.
As it is noted, "during a period where the economic environment remains fragile and the banking sector continues to face challenges, the return to profitability for a second consecutive quarter indicates that the Hellenic Bank Group is on the right track to achieving its goals while at the same time shows signs of stability."
In the first quarter of 2015, deposits were further increased, enhancing the Group’s comfortable liquidity. The liquidity and capital adequacy indicate the prospects of the Bank’s business model for growth and profitability.
The Group’s profit from ordinary operations before impairment losses and provisions amounted to €22 million, totalling €12 million after provisions. The sale of Borenham Holdings Limited, the Bank’s subsidiary in Russia, resulted in a profit of €5 million.
The ratio of non-performing loans to the total gross loans, calculated in accordance with the new methodology of the European Banking Authority, stands at 60%, of which 47% is covered by provisions for impairment and the remainder by tangible collateral.
Recognising that the management of non-performing loans is the biggest challenge of the banking system, the Bank is proceeding with a specific plan for their management which aims to result in fair and viable restructurings, the press release notes.
It adds that "in spite of the overall uncertainty that was caused by the Eurogroup’s decisions in March 2013, over the past two years the Hellenic Bank Group has managed to increase its deposits significantly. The positive deposits trend continued during the first quarter of 2015, resulting in a 4% increase in deposits compared to December 2014 (€6,3 billion) which reached €6,6 billion with a net loans to deposits ratio of 49%."
"Having a strong capital position, Hellenic Bank can withstand the pressures and is ready to take advantage of the opportunities for growth. The Group’s Capital Adequacy Ratio at 31 March 2015 was 17,9%, the Tier 1 Capital Ratio 16,2% and the Common Equity Tier 1 (CET 1) Ratio 13,3%," the press release concludes.