Following Bank of Cyprus and Eurobank, Hellenic Bank has also reported profits.
The financial institution's figures for the first quarter of 2024 were successful.
In particular, Hellenic Bank earned €93.3 million, compared to €69.7 million in 2023. According to the financial institution, its profitability was boosted by the high interest rates introduced by the ECB to fight inflation. The bank focuses on retail banking with a stable customer base and has a significant market share among households (36 per cent of deposits and 33 per cent of loans).
New borrowing in the first quarter of 2024 totalled € 208 million, 34% lower than in 2023, but in line with the target for the year. Based on the revised medium-term targets, this amount is expected to increase. It is also important to note that 99.7% of new loans after 2018 are performing.
Hellenic Bank's non-performing loan (NPL) coverage ratio fell to 2.5 per cent, with an NPL coverage ratio of 42 per cent and a collateral coverage ratio of 139 per cent for net problem loans.
The new year 2024 has started well for Hellenic Bank, which reported a profit of € 93.3 million for the first quarter, mainly due to higher revenues. The results demonstrate the resilience and potential of our business model, despite the ongoing challenges and uncertainties caused by the geopolitical and economic environment. 2024 is marked by two important achievements for our Group. First, after lengthy negotiations and a mediation proposal by the Minister of Labour and Social Security, a framework agreement was reached to extend the collective agreement between the Bank and ETYK. This will allow us to focus on the implementation of our strategic plan while pursuing various innovations. The second but equally important development is the agreement between Hellenic Bank and CNP Assurance, which will allow us to significantly strengthen our insurance activities and become a leading financial group with a strong presence in both banking and insurance in Cyprus. This transaction is a perfect fit with our business model and offers significant synergies and growth opportunities, enhancing the products and services offered to our broad customer base," said Antonis Rouvas, Interim CEO of Hellenic Bank.
Hellenic Bank's history began in 1976 with the opening of its first branch in Nicosia.
In 1985, a subsidiary, Hellenic Bank (Finance) Ltd, was established, whose main activity was asset financing, and in 1986, a subsidiary, Hellenic Bank (Investments) Ltd, which provided investment services. In 1990, Hellenic Bank opened its first International Business Centre. In 1996, the Group acquired Barclays Bank's branch network in Cyprus, and in 1998 it opened its first branch in Greece. In the same year, the bank opened representative offices in Russia and South Africa. In the following years, Hellenic Bank developed very dynamically, opening new offices, expanding the branch network and introducing new organisational structures into the Group's structure. Currently, Hellenic Bank has more than 80 branches and 5 international business centres with representative offices throughout Europe and beyond.