The strategic plan of the Hellenic Bank was approved by its Board of Directors, states a press release issued by the Bank.
The press release notes that the main strategic pillars of the Plan are growth, asset quality, cost rationalisation, and capital and funding optimisation.
The Plan addresses the Bank’s structural challenges for driving the Bank forward as a leading player in the local market. The Plan, enabled by an increased focus on digitalisation, includes initiatives to increase customer engagement to reinforce trust and grow the business, focus on Environment, Social and Governance (ESG), including Green financing. It also aims to streamline operations to ensure optimal resource utilisation, build a sustainable bank through Non-Performing Exposures (“NP?s”) deleveraging and cost optimisation and unlock human potential through enhancing employee culture.
Following the Plan’s approval, the Bank will seek to achieve targets for the medium term, such as the increase of new lending to more than €1.2 billion per annum, the decrease of the expense-income ratio to less than 50% and the increase of the return on tangible equity at 10%.
Further to previous statements regarding the positive impact on its financial performance from the rising interest rates, the Bank notes that the evolving interest rate environment will continue to support its performance in the coming years. As per its Plan, the Bank expects its profit before tax for FY23 to be higher than €200 million, mainly driven by the expected changes in interest rates and the improved cost structure following the successful Voluntary Early Exit Scheme completed in November 2022.
Taking into account the Bank’s expected financial performance as per its Plan and post the completion of the Starlight Project, expected in early 2023, the Bank will engage with its regulators for commencing dividend payments from 2023 onwards, subject to relevant regulatory approvals.
Commenting on the approval of the Plan, Oliver Gatzke, Chief Executive Officer of Hellenic Bank Public Company Ltd, stated that “the revised medium-term targets indicate that our transformation journey is on track. We are addressing the Bank’s structural challenges and unlocking the potential within the organisation, towards creating a bank for the future that generates value for all stakeholders.”
SOURCE: CYPRUS NEWS AGENCY