Hellenica Bank, announced its 1Q economy results that show profit after tax of €12,9 million and profit before impairment losses of €22,9 million

Additionally, strong Capital Position,  showed CET1 ratio of 20,20%[1] and Capital adequacy ratio of 22,54%1, significantly above minimum regulatory requirements which for 2021 are set at 9,55% and 14,45% respectively

Also, a significantly de-risked balance sheet: NPEs ratio to gross loans at 15,8% (excl. APS2-NPEs), and Net NPEs3 to total Assets ratio at 2,7% (excl. APS2-NPEs)

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Statement by Interim CEO Phivos Stasopoulos:

Commenting on the Group’s financial results, Phivos Stasopoulos, the Group’s Interim Chief Executive Officer, stated:

'''The economic environment in Cyprus and globally continue being affected by the Covid-19 pandemic. However, with the gradual reopening of the domestic economy and the implementation of a robust governmental fiscal and liquidity package, the activity in specific sectors is showing signs of a recovery. Despite the slowdown of the economic activity, our Q1 2021 financial results demonstrate the robustness of Hellenic Bank and the resilience of our business model.

With a solid capital adequacy ratio of 22,54% and strong liquidity (Liquidity Coverage Ratio of 480%), we are very well positioned, we are supporting our viable customers and finance the recovery of the economy. Following a record year of new lending, during the Q1 of 2021 €166 million of new loans were granted. The solid performance continued, delivering an after-tax profit of €12,9 million. At the same time, we have been working intensively on improving the quality of our portfolio through resolving and deleveraging our NPE’s which stand at 15,8% (NPEs to gross loans ratio, excl. APS2-NPEs). Furthermore, we have focused our attention on the €2.8 billion loan portfolio of our customers that were under the loan instalment moratorium of 2020, in order to avoid the formation of arrears and NPLs. We note with satisfaction that the vast majority of the respective borrowers are performing well or have been offered restructuring solutions, where needed and justified.

We remain committed to our transformation journey, including digitalization and process streamlining aiming towards offering seamless experience to our customers and value-adding products and services. We continue educating and migrating our customers to alternative channels and we are pleased to see that they embraced this effort as more than 85% of total transactions are executed through alternative channels.

I want to sincerely thank our Board of Directors and shareholders for their continuous support and confidence shown to us, and assure them, that the Hellenic Bank family remains fully focused to achieve its goals and strategic objectives. At the same time, I extend my great appreciation to our staff for their commitment, resilience and hard work during these exceptional circumstances''.

Other key highlights:

• 1Q2021 Net interest income of €65,3 million

• 1Q2021 Profit before impairment losses of €22,9 million

• 1Q2021 Impairment losses of €7,4 million

• Total new lending approved during 1Q2021 reached €166 million

• NPEs provision coverage ratio at 47,6% (excluding the NPEs covered by the APS agreement the ratio is adjusted to 60,0%) as at 31 March 2021

• 1Q2021 cost to income ratio of 74,3%

• Robust liquidity position, with a Liquidity Coverage Ratio of 480% and a liquidity surplus of €5,6 billion

• Net loans to deposits ratio of 42,5%, enabling further business expansion

• Solid, stable, primarily retail deposit base.