Today, Hellenic Bank revealed its financial results for the first half of 2023, demonstrating growth.

Profit Growth:

The bank reported profits of €160.2 million for the first six months of the year. This impressive gain is primarily attributed to increased revenues from deposits held at the Central Bank and from interest on bonds.

Capital Strength:

With a Common Equity Tier 1 (CET1) Capital Ratio at 20.8% and an overall Capital Adequacy Ratio at 26.5%, the bank comfortably surpasses the minimum requirements set by regulatory authorities.

Reduced Risk Profile:

The bank's non-performing loan (NPL) ratio stands at a moderate 8.9%. Importantly, this drops to just 3.3% when accounting for loans protected under the Asset Protection Program.

Digital Transformation:

Hellenic Bank is also undergoing a transformation aimed at digitizing its services and enhancing operational efficiency.

Lending Surge:

New loans issued during the first half of 2023 amounted to €647 million, marking a year-over-year increase of 16%.

• Net Interest Income: Earnings from interest rose dramatically by 77% year-over-year, reaching €235.4 million. This is chiefly due to higher interest rates and the optimal structuring of the bank's balance sheet.

• Cost-to-Income Ratio: Standing at 38%, the ratio indicates increased efficiency, helped in part by cost-saving measures like the Voluntary Early Retirement Scheme implemented in December 2022.

• Loan Performance: A remarkable 99.6% of loans issued after 2018 are being serviced regularly, showcasing the quality of the bank's loan portfolio.

• NPL Coverage: As of June 30, 2023, the coverage ratio for non-performing loans was 51%, excluding those covered by asset protection schemes.

• Liquidity: The bank's Liquidity Coverage Ratio (LCR) is a staggering 499%, with €6 billion in reserves placed at the European Central Bank. This excludes borrowings under targeted longer-term refinancing operations (TLTROs), which amount to €2.3 billion.

• MREL Compliance: The bank's MREL (Minimum Requirement for Own Funds and Eligible Liabilities) ratio to total risk exposure stands at 29.1%, well above the minimum required by December 2025.

Despite these strong figures, Hellenic Bank acknowledges ongoing challenges in both the economic and operational landscape. Nevertheless, the current metrics suggest that the bank is well-equipped to navigate these hurdles moving forward.