Eurobank boosts stake to 98 per cent
Hellenic Bank on Thursday reported a profit of €45 million for the first quarter of 2025, with the bank saying that this underscores the strength of its business model.
Moreover, the bank stated that the latest results reflect its solid capital position. It reported a pro forma Common Equity Tier 1 (CET1) ratio of 32.38 per cent and a pro forma Total Capital Adequacy Ratio of 36.28 per cent, both significantly exceeding regulatory requirements.
“Hellenic Bank has reported satisfactory financial results for the first quarter of 2025, demonstrating the resilience of our business model and the successful execution of our strategic priorities,” said chief executive officer Michalis Louis.
“In the first quarter of 2025, the Bank reported a profit of €45 million after the one-off cost related to the voluntary exit scheme,” he added.
“As a result of the profitability,” Louis continued, “combined with the effective management of the risk weighted assets base of the bank, the pro forma Total Capital Adequacy Ratio increased further by 408 basis points and amounted to 36.28 per cent.”
What is more, liquidity remains strong, with a Liquidity Coverage Ratio (LCR) of 493 per cent and €5 billion placed at the European Central Bank.
The bank’s de-risked balance sheet features a Non-Performing Exposure (NPE) ratio of 2.4 per cent, excluding NPEs under the asset protection scheme, and a coverage ratio of 64 per cent.
“2025 has started on a strong note for Hellenic Bank,” Louis stated.
“Our balance sheet remains strong, with a Non-Performing Exposure (NPE) ratio of 2.4 per cent (excluding the NPEs covered by the APS agreement), reflecting our prudent approach to risk management,” he said.
Furthermore, the bank reported that issued new loans totalling €404 million during the first quarter, representing a 94 per cent year-on-year increase.
“New lending reached €404 million, marking a 94 per cent year-on-year increase and reaffirming our commitment to supporting the domestic economy and meeting the needs of our clients,” the CEO explained.
Net interest income for the quarter amounted to €131 million, down 13 per cent compared to the same period last year. Meanwhile, the cost-to-income ratio stood at 42 per cent.
Moreover, following the successful completion of its mandatory takeover bid, Eurobank Group has increased its stake in Hellenic Bank to approximately 98 per cent and is moving toward full ownership, Louis mentioned.
“As part of the Eurobank Group, we are focused on the integration of Hellenic Bank with Eurobank Cyprus and on further enhancing the customer experience, supporting economic growth, and delivering value to our clients,” he stated.
The integration, the bank explained, will form one of the largest financial institutions in Cyprus.
Further strengthening its presence in the local financial services market, Hellenic Bank also completed the acquisition of CNP Cyprus Insurance Holdings.
“Additionally, the acquisition of CNP Cyprus Insurance Holdings has been completed,” said Louis.
“These developments are key milestones in our ambition to become one of the leading financial services institutions in Cyprus,” he added.
The first quarter also saw the completion of a voluntary exit scheme, resulting in around 7 per cent of employees leaving the group at a total cost of €25.9 million.
The exit scheme is expected to yield annual payroll cost savings of approximately €11.2 million.
The bank also reported that as of March 31, 2025, it maintained a net loans to deposits ratio of 36.6 per cent, saying that this provides capacity for further business expansion.
Additionally, 99.6 per cent of all new lending exposures issued since 2018 remain performing, reflecting robust credit quality standards.
