Hellenic Bank reports €45m Q1 profit

Hellenic Bank has announced a €45m for the first quarter of 2025, as it comes one step closer to becoming a member of Eurobank Group.

The bank said it had a solid capital position, with a pro forma CET1 ratio of 32.38% and pro forma Total Capital ratio of 36.28%, well above minimum regulatory requirements.

It also spoke of a de-risked balance sheet, with its NPE ratio at 2.4% and NPE coverage at 64% (ratios exclude NPEs covered by the APS agreement).

And all this while Hellenic inches towards becoming a member of Eurobank Group, one of the leading banking groups in Greece and the region. “Merging Hellenic Bank with Eurobank Cyprus will create one of the largest financial institutions in Cyprus,” the bank said in its announcement. This, along with the acquisition of CNP Cyprus Insurance to create the largest insurance operator in Cyprus.

Michalis Louis: "2025 has started on a strong note for Hellenic Bank"

Commenting on Hellenic Bank Group’s financial results for the three-month period ended 31 March 2025, Chief Executive Officer Michalis Louis: “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.

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. As a result of the profitability 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 bps and amounted to 36.28%. Liquidity is maintained at high levels as demonstrated by the Liquidity Coverage Ratio of 493%.”

He added that 2025 has started on a strong note for Hellenic Bank. “Our balance sheet remains strong, with a Non-Performing Exposure (NPE) ratio of 2.4% (excluding the NPEs covered by the APS agreement), reflecting our prudent approach to risk management. New lending reached €404 million, marking a 94% year-on-year increase and reaffirming our commitment to supporting the domestic economy and meeting the needs of our clients.”

Following the successful completion of its mandatory takeover bid, Eurobank Group has increased its stake to circa 98% and is now proceeding to secure full ownership. “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,” Louis said. “Additionally, the acquisition of CNP Cyprus Insurance Holdings has been completed. These developments are key milestones in our ambition to become one of the leading financial services institutions in Cyprus.”

Other key highlights:

• 1Q2025 Net interest income of €131 million, (-13% YoY)
• 1Q2025 new lending of €404 million (+94% YoY)
• 99.6% of new lending exposures post 2018 are performing
• 1Q2025 Cost to income ratio of 42%
• VEES completion in 1Q2025 with c.7% of employees exiting the Group for a total cost of €25.9 million (annual saving payroll cost of c.€11.2 million)
• Ample liquidity, with an LCR of 493% and with €5,0 billion placed at the ECB
• Net loans to deposits ratio of 36.6% on 31 March 2025, enabling further business expansion