Hellenic Bank announced a profit of €69.7 million for the first quarter of 2023. According to the bank, it maintains a stable capital base with a Common Equity Tier 1 (CET1) capital ratio of 19.3% and a Capital Adequacy Ratio of 25.1%. These percentages significantly exceed the minimum requirements set by regulatory authorities.

The bank also recorded a reduction in balance sheet risk, as the Non-Performing Loan (NPL) ratio stands at 9.3%, and the NPL ratio excluding NPLs covered by the Asset Protection Scheme (APS) is at 3.4%.

The completion of "Project Starlight" during the first quarter of 2023 marks a new era for the bank, with the securitization of approximately €0.8 billion of NPLs and the sale of APS Debt Servicer.

The bank is currently working on a strategic plan for transformation and addressing structural challenges, focusing on digitization and efficiency improvement.

An additional highlight is the successful issuance of €200 million Tier 2 Subordinated Notes on March 8, 2023, which attracted significant international investor interest. The offering was oversubscribed nearly 4.5 times, as reported.

Commenting on the Group's results for the quarter ended March 31, 2023, Oliver Gatske, CEO of the Group, stated that "2023 has started strong for the Hellenic Bank, with a robust first quarter profit of €69.7 million, mainly driven by higher revenues and cost rationalization."

He added that these results "demonstrate the resilience of our business model and our commitment to enhancing the bank's value, supporting our clients, and consequently contributing to the growth of the economy."

Mr. Gatske also mentioned that the first quarter of 2023 was characterized by market turbulence in both the US and Europe. However, the Greek Bank remained unaffected by these developments, primarily due to its strong capital position (Capital Adequacy Ratio of 25.1%) and ample liquidity (Liquidity Coverage Ratio of 454%). This solid financial position allows the bank to continue supporting its retail and corporate clients by providing competitive and personalized financial products and services.

Moreover, new lending during the first quarter of 2023 reached €315 million (a 17% increase on an annual basis), boosting our market share to 35% by April 2023 (compared to 28% in 2022). Net interest income amounted to €108.1 million, representing a 74% increase compared to the first quarter of 2022, primarily attributed to the international environment of higher interest rates.

The adjusted cost-to-income ratio stands at 40%, aligning with the bank's medium-term targets. The bank remains committed to cost management initiatives, offsetting the continued increase in labor expenses, such as Employee Share Ownership Program (ATP) and automatic salary increases.

Mr. Gatske emphasized the bank's full compliance with the sanctions imposed by the European Union, the United States, and the United Kingdom, following the recent inclusion of Cypriot legal and natural persons in their sanction lists. This compliance is achieved through strict and thorough controls and measures, reflecting a zero-tolerance policy.