According to report, the bank’s solid capital position was highlighted by a pro forma CET1 ratio of 26.55 per cent and a pro forma Total Capital ratio of 32.19 per cent, both significantly above the minimum regulatory requirements.
“Hellenic Bank’s performance for the first half of 2024 was solid,” said interim CEO Antonis Rouvas, who noted that the bank’s profitability was primarily driven by higher interest income. “This performance demonstrates the resilience and robustness of our business model, despite the continuing challenges and uncertainty rising from the geopolitical and economic environment,” he added.
According to the bank’s financial results, Hellenic Bank also made progress in reducing risk, with a non-performing exposure (NPE) ratio of 2.4 per cent, excluding NPEs covered by the APS agreement.
The results showed that the NPE provision coverage, also excluding those covered by the APS agreement, stood at 39 per cent.
Elsewhere, one of the significant developments for Hellenic Bank was the agreement with CNP Assurances on CNP Cyprus Insurance Holdings, which is set to create the largest insurance operator in Cyprus.
“In July 2024 we signed a Sales and Purchase Agreement with CNP Assurances to acquire its subsidiary CNP Cyprus Insurance Holdings Limited, operating in Cyprus and Greece. This will allow the bank to significantly strengthen its insurance operations and become a leading financial services group with a strong presence in the financial and insurance sectors in Cyprus,” he added.
He further stressed that “upon completion, Hellenic Bank is expected to have a leading position in the insurance market in Cyprus“.
The bank also reached a framework agreement for the renewal of the collective staff agreement.
Rouvas said that the bank “managed to overcome a long-lasting issue” with bank workers’ union Etyk, explaining that “this will allow us to focus on delivering our strategic plan, together with our bank’s transformation plan, prioritising customer-centricity and accelerating digital transformation“. In terms of lending, Hellenic Bank provided €472 million in new loans during the first half of 2024.
The bank said that it continues to focus on the retail sector, maintaining a strong customer base with significant market shares in household deposits and loans, at 36 per cent and 33 per cent, respectively. “New lending during the first half of 2024 reached €472 million, as we continue providing competitive, tailor-made credit products,” Rouvas stated. “At the same time, we remain watchful of potential risks that could adversely affect the bank’s performance, due to the challenging economic and operational environment and elevated geopolitical risks,” he added. He also noted that “further reduction of the NPE ratio remains a priority“.
