The Hellenic Bank announced on Wednesday that the one-off de-recognition of deferred tax asset of €51.2 million in combination with the increased provisions resulted in a loss after tax from continuing operations of €62.7 million for 2016.
It said that during 2016, it approved €354 million of new lending and also completed further restructurings of €701 million. The Bank said that it maintained a strong capital adequacy ratio of 17.22%.
The level of NPEs has been reduced for a fifth consecutive quarter to €2.340 million at December 31, 2016, down by 2% compared to September 30, 2016 and by 10% compared to December 31, 2015. The NPEs to gross loans ratio as at December 31, 2016 was reduced to 56.6% (September 30, 2016: 57.1%, December 31, 2015: 59.2%).
“The Group maintains robust capital adequacy ratios, above the minimum required by the relevant Regulatory Authorities. As of December 31, 2016, the Common Equity Tier 1 (CET 1) ratio stood at 13.81%, well above the minimum CET 1 ratio of 9.25% set by the regulatory authorities for 2017. At the end of year 2016, the Group’s Capital Adequacy Ratio was 17.22% and the Tier 1 ratio was 16.99%,” said the Bank in a press release.
Net loan to deposits ratio
It added that in 2016 the Group maintained its strong liquidity position. The net loan to deposits ratio stood at 47.9% as of December 31, 2016. On December 31, total deposits amounted to €6.1 billion while total gross loans reached €4.1 billion.
Phivos Stasopoulos Group General Manager, Corporate and Insurance Division, said that “we have made further progress executing our strategic priorities during the last quarter of 2016. We reduced NPEs for a fifth consecutive quarter to their lowest level post December 2014. We completed about €701 million of loan restructurings, as part of NPEs resolution, during 2016 and the loan restructuring momentum remains strong.”
He noted that earlier this year, the Bank reached an agreement with APS Holding a.s., subject to completion and regulatory approvals, to create the first debt servicing and real estate asset management platform in the Cypriot market to tackle problematic loans in a more efficient and effective way.
Source: CNA
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