Eurobank Proposes New Board Structure for Hellenic Bank Ahead of General Assembly

Eurobank has revealed the new board members it plans to propose for Hellenic Bank in the lead-up to the general assembly scheduled for September 18.

According to the proposal, Petros Christodoulou is expected to retain his position as chairman. Additionally, Michalis Louis, currently serving as the chief executive officer of Eurobank Cyprus, has been recommended as an executive board member.

Another key figure included in the proposal is Antonis Rouvas, the current interim CEO of Hellenic Bank, who has also been suggested as an executive board member. The proposed structure for Hellenic Bank’s new board also features independent non-executive board members Stephen John Albutt and Maria Xatha.

The lineup for independent non-executive members on the new board is set to include Oliver Bernard Elligan, Robert Anastasis Kyprianou, Charalambos Konstantinou, Maria Charalambous, Sofronis Clerides, and Kenneth Howard Smith.

Eurobank’s influence has grown substantially following the completion of its mandatory public offer to Hellenic Bank shareholders, leading to Eurobank now holding 56 percent of the bank’s total share capital, making it the largest shareholder within the group.

As reported earlier this month, Eurobank does not intend to make significant changes to the senior management structure of Hellenic Bank. Reports suggest that the management of Hellenic Bank will be bolstered by a small executive team from Eurobank Cyprus rather than from its parent company in Athens. Furthermore, the selection of the new CEO for Hellenic Bank will be made by the new board, which will be elected at the extraordinary general assembly.

It is noteworthy that Michalis Louis has been the CEO of Eurobank Cyprus since its inception. During the banking crisis, Eurobank managed to maintain the lowest percentage of non-performing loans, around 6 percent, and has consistently achieved steady profitability in recent years.

According to the bank’s most recent financial results, Eurobank Cyprus reported a net profit after tax of €105.7 million for the first half of 2024. The financial results for the period indicate strong capital adequacy and liquidity, an improved cost-to-income ratio, and increased profitability. The bank’s net profit showed a €14.9 million increase over the same period in 2023, reflecting a 16 percent year-on-year rise.

Additionally, the bank’s loans-to-deposits ratio, excluding loans secured by deposits, increased to 32.8 percent, with total deposits reaching €7.47 billion, marking an increase of €371 million since the start of the year.

Meanwhile, Hellenic Bank reported an after-tax profit of €93.3 million for the first quarter of 2024. Interim CEO Antonis Rouvas commented that the year "started on a strong footing" for the bank. "This performance demonstrates the resilience and robustness of our business model, despite the continuing challenges and uncertainty arising from the geopolitical and economic environment," Rouvas added at the time.

By fLEXI tEAM