After the Bank of Cyprus, the Hellenic Bank reported its profits.
The indicators of the financial institution for 2023 were record high.
More specifically, Hellenic Bank earned 365.4 million euros, compared to 22 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.
The bank's net interest income rose 78% year-on-year to €563.3 million thanks to higher key interest rates and the use of high liquidity on its balance sheet. In addition, interest income for 2023 reflects the full effect of the acquisition of part of the troubled loan portfolio from RCB Bank in 2022.
Hellenic Bank appears to have comfortable liquidity, with a liquidity coverage ratio (LCR) of 542% and €5.8 billion placed with the ECB, allowing it to benefit from rising interest rates.
New borrowing in 2023 amounted to €1,204 million, up 2% from 2022, 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 that 99.7% of new loans after 2018 are performing.
Hellenic Bank's problem loan coverage ratio (NPL) decreased to 2.5% in 2023, with a 41% NPL coverage ratio and a 139% collateral coverage ratio for net problem loans.In the revised medium-term targets, the NPL ratio is estimated to be around 3%.
As a reminder, Hellenic Bank began its history in 1976 with the opening of its first branch in Nicosia.
In 1985, a subsidiary Hellenic Bank (Finance) Ltd was established with asset financing as its core business, and in 1986, a subsidiary Hellenic Bank (Investments) Ltd was established to provide investment services.
In 1990, Hellenic Bank opened its first International Business Center. In 1996, the group acquired the Barclays Bank 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, new offices were opened, branch networks were expanded and new organizational structures were introduced into the group structure. At present Hellenic Bank has more than 80 branches and 5 international business centers with representative offices throughout Europe and beyond.