Nicosia: Hellenic Bank recorded a profit of £383 million for 2024, reflecting a 10% year-on-year increase, after adjusting for discontinued operations, in a landmark year for its ownership structure following its acquisition by Eurobank.
According to Cyprus News Agency, the return on tangible equity reached 23%, with the Bank maintaining a solid capital position. The Common Equity Tier 1 (CET1) ratio stood at 28.7% and the Total Capital Ratio at 32.2%, significantly exceeding minimum regulatory requirements. The Bank’s liquidity coverage ratio was reported at 519%, with £5.6 billion placed at the European Central Bank (ECB).
New lending for the year amounted to £1,075 billion, with 99.6% of post-2018 new lending exposures classified as performing. The Non-Performing Exposure (NPE) ratio declined to 2.4%, with NPE coverage, excluding those covered by the APS agreement, at 63%. As of 31 December 2024, the net loans-to-deposits ratio stood at 36.6%.
The Bank’s net interest income was reported at £599 million,
marking a 12% year-on-year increase, while the Cost-to-Income ratio was 40% for the year.
The Eurobank Group currently holds 93.5% of Hellenic Bank’s share capital and is expected to increase its ownership to 100% following a mandatory tender offer and squeeze-out process in the first half of 2025. Subsequently, and subject to regulatory approvals, a merger with Eurobank Cyprus is anticipated, potentially creating one of the largest financial institutions in Cyprus.
The Bank’s announcement of its financial results highlighted that the business models of Hellenic Bank and Eurobank Cyprus are complementary, aiming to enhance customer offerings and service experience.
Furthermore, the acquisition of CNP Cyprus Insurance Holdings is expected to be completed during the first quarter of 2025. This acquisition is seen as a significant milestone for the Bank, poised to establish itself as a leading financial services institution in Cyprus with a focus on customers, employees, and the broader society.
Commenting o
n the financial results, Michalis Louis, Chief Executive Officer of Hellenic Bank, noted that 2024 was a landmark year for the Bank in terms of financial performance and ownership structure. He emphasized the Bank’s commitment to enhancing customer relationships and supporting economic growth in Cyprus.