Hellenic Bank has reported a solid financial performance for 2024, with net interest income reaching €599 million, a 12% year-on-year increase, and total net income rising by 10% to €728 million. Despite higher operating expenses, the bank maintained a cost-to-income ratio of 36%, while its capital and liquidity positions remained robust.

• Net profit: €383 million (+10% year-on-year, adjusted for discontinued operations)

• Return on equity: 23%

• Net interest income: €599 million (+12% year-on-year)

• Total net income: €728 million (+10% year-on-year)

• Cost-to-income ratio: 36% (up from 34% in 2023)

• Pre-tax profit before financial asset write-offs: €437 million (+8% year-on-year)

• Return on tangible equity (ROTE): 23.2% (down from 27.1% in 2023)

• Net book value per share (TBVPS): €4.45 (+26% year-on-year)

The bank also highlighted the strong domestic economic performance, reflected in Cyprus's recent sovereign credit rating upgrades.

Hellenic Bank reported a non-performing exposure (NPE) ratio of 2.4%, with coverage ratios of 63% and 149% for NPEs.

• New lending in 2024: €1.075 billion (-11% year-on-year)

• New loans in Q4 2024: €370 million (+58% quarter-on-quarter)

• Post-2018 loan book quality: 99.6% performing loans

As Brief reports, the bank's total capital ratio stood at 32.2%, with an adjusted rate of approximately 29.7% following the completion of the CNP transaction, expected in Q1 2025.

Additionally, the acquisition of Additional Tier 1 (AT1) capital led to a capital impact of -216 basis points and annual interest savings of €13 million.

Hellenic Bank maintains a strong liquidity position, with deposits increasing by €0.7 billion (+5%) in Q4 2024 and a liquidity coverage ratio (LCR) of 519%, including €5.6 billion in ECB placements.

Hellenic Bank CEO Michalis Louis described 2024 as a landmark year, emphasizing strong financial results and the bank’s strategic transformation under new ownership.Louis highlighted the bank’s commitment to supporting the local economy, with over €1.1 billion in new lending during the year.

As of now, Eurobank Group owns 93.5% of Hellenic Bank’s share capital and plans to increase its stake to 100% in H1 2025 through a mandatory public offer and squeeze-out process.

Following regulatory approvals, Eurobank intends to merge Hellenic Bank with Eurobank Cyprus, forming one of the largest financial institutions in Cyprus. Louis stated that the two banks’ business models are complementary, promising enhanced products and customer service.

Additionally, the bank is set to complete the acquisition of CNP Cyprus Insurance Holdings in Q1 2025, a move seen as a key milestone in strengthening its financial services portfolio.

“We aim to become one of the leading financial institutions in Cyprus, prioritizing our customers, employees, and the broader society,” Louis said.

As Brief reports, he also emphasized the strength of Eurobank Group, one of Greece’s largest banking groups, with assets exceeding €100 billion.

“We will continue supporting Cypriot society by contributing to economic growth, ensuring banking system stability, and prioritizing customer prosperity,” he added.