Hellenic Bank Reports €284 Million Profit in First Nine Months of 2024 Amid Strong Growth and Strategic Expansion

Hellenic Bank announced a post-tax profit of €284 million for the first nine months of 2024, a 28% increase over the same period last year.

CEO Michalis Louis highlighted the bank’s resilience despite global challenges, noting, “During the first nine months of 2024, Hellenic Bank’s performance was strong, despite global challenges.”

With a solid capital base, Hellenic’s Common Equity Tier 1 (CET1) ratio stands at 28.3%, while the Total Capital Ratio reached 34.1%, both comfortably above regulatory thresholds.

Louis emphasized the bank’s commitment to supporting Cyprus’ economy, saying, “By maintaining a strong capital base and surplus liquidity, we are in a position to support the growth of the economy, supporting customer needs, both individual and business customers.”

The bank’s de-risking measures have been successful, driving its non-performing exposures (NPE) ratio to 2.4%, with a 74% coverage for NPE provisions. Additionally, Hellenic Bank holds a 35% market share in household deposits and 32% in household loans, further solidifying its local presence. “Hellenic Bank’s history deserves the utmost respect as a new chapter opens up to reinforce its already successful course, with the Eurobank Group now as its main shareholder,” said Louis. He expressed optimism about the bank’s future with Eurobank, noting that “armed with the bank’s strong foundations, we are looking forward aiming to shape an even more dynamic future, with our customers at the epicentre of our strategy.”

Louis outlined Hellenic’s strategic priorities: “strengthening customer relationships, modernising our organisational structure, and accelerating the digital transition.” He also highlighted the benefits of integrating with Eurobank, saying it would provide access to technical know-how and best practices that would “significantly help the customer service quality we offer to our clients, while creating value for our people and our shareholders.”

Hellenic Bank’s net interest income rose to €456 million, marking a 20% year-on-year increase due to higher interest rates and a strong liquidity position. New lending amounted to €705 million, with 99.7% of these post-2018 loans performing well. The bank’s cost-to-income ratio improved slightly to 34%, down from 35% the previous year.

In its latest expansion, Hellenic Bank signed an agreement with CNP Assurances to acquire CNP Cyprus Insurance Holdings, a move that will make it the largest insurance provider in Cyprus. This acquisition, officials noted, will further diversify the bank’s offerings.

Hellenic Bank’s liquidity remains robust, with a Liquidity Coverage Ratio (LCR) of 583%, supported by €5.3 billion deposited with the European Central Bank (ECB), enabling the bank to “benefit from current interest rates.” The net loans-to-deposits ratio is at 39%, providing the bank with opportunities for further business growth.

In recognition of Hellenic Bank’s solid performance, Moody’s Ratings upgraded the bank’s long-term deposit rating to Baa2 with a positive outlook in September 2024, an improvement that aligns with Cyprus’ sovereign rating upgrade amid a stable economic environment.

CEO Louis acknowledged the need for vigilance amid geopolitical uncertainties, stating, “At the same time, given the geopolitical challenges, we must remain vigilant.”

Louis also advocated for fiscal responsibility in Cyprus, stressing the importance of “maintaining fiscal surpluses, reducing public debt, and further upgrading the Republic of Cyprus’ credit rating” as primary goals. He further described Cyprus’ economic and banking growth prospects as “satisfactory” and emphasized the need for a stable and competitive economy. “We must maintain a healthy and competitive economy, and a reliable and stable legal and fiscal framework, to ensure there is stability and prosperity in our society,” he added.

Reflecting on the bank’s commitment to sustainable development, Louis stated that Hellenic Bank integrates ESG (environment, social, corporate governance) principles in its operations, contributing to a “more sustainable and inclusive society.” He concluded, “We incorporate ESG criteria into our practices and investments, actively contributing to the creation of a more sustainable and inclusive society.” 

By fLEXI tEAM