Following Bank of Cyprus and Hellenic Bank, Astro Bank reported its profits.
On Tuesday, April 16, the financial institution published its results for 2023.
Specifically, Astro Bank earned 39.4 million euros, up from 21.7 million euros in 2022. According to the financial institution, its profitability was boosted by the high interest rates introduced by the ECB in the fight against inflation.
Meanwhile, the bank's total operating income rose to 97.2 million euros (+34%) from 72.7 million euros in 2022, mainly due to net interest income, which increased by 46% to 74.8 million euros. Moreover, Astro Bank's balance sheet remained stable, with total assets of €2.72 billion as of December 31, 2023.
Net loans declined to €933 million from €1.09 billion in 2022, reflecting significant resolution of the troubled portfolio.
Customer deposits, on the other hand, grew significantly to €2.15 million, up 2% from a year earlier. The bank's capital adequacy ratio improved to 23.7% from 18% in 2023, supported by total capital of €234.1 million. In addition, the NPE ratio decreased to 14.9 percent from 19.8 percent in 2022 solely due to organic solutions. Finally, Astro Bank's liquidity remained strong throughout the year, with a liquidity coverage ratio of 366 percent and a loan-to-deposit ratio of 43 percent. The bank also successfully issued new MREL bonds worth €34 million in 2023, achieving an MREL ratio of 27.8%. The expense to income ratio decreased to 52.3% in 2023 from 68.2% in 2022.
The systematic efforts of the last years to focus our business model, optimize operations, reshape and de-risk our balance sheet, as well as the favorable interest rate and macroeconomic environment have contributed to the strong financial performance," Astro Bank CEO Aristidis Vourakis said.
Vourakis emphasized that 2023 was a remarkable year for Astro Bank.
The decisive actions of the management team contributed to the bank's transformation into a strong and well-capitalized banking institution, capable of delivering value to its customers and shareholders," he added.
Vourakis noted that with a regulatory capital of almost 24%, an extensive presence in Cyprus and a revamped digital offering, Astro Bank intends to occupy a key position in serving Cypriot organizations and individual clients in the future. The CEO of Astro Bank also assured that the bank remains committed to its business plan, noting that this has resulted in significant operational efficiencies, quality customer service and improved profitability over the past few years.