NICOSIA - Hellenic Bank posted a net loss of €23.44m for 2012 containing losses in a year of continued financial crisis and subdued financial activity.
According to the group`s preliminary financial results for 2012, Hellenic Bank recorded a loss of €23.44m, compared with a €100.7m loss in 2011, which however included an impairment of Greek sovereign bonds worth of €77m.
The group`s profit for 2012 before provisions increased by 168% at €149.1m compared with profit of €55.6m in 2011. Excluding the Greek bonds impairment the Group profits recorded an increase of 13% year on year.
The Bank announced that its strategic goals "continue to focus on credit risk effective management, on safeguarding and strengthening capital adequacy indices, on safeguarding healthy liquidity and on careful and rational asset management aiming at profitability."
However the bank warns that "challenges for the Cypriot economy will continue in 2013 with the continuation of recession, with low credit expansion, reduction of consumption and the high level unemployment."
"The implementation of fiscal consolidation measures are expected to create more pressure in all sectors of the economy in the short-term, while in the medium term they will yield the improvement of competitiveness a return to growth rates," the bank said.
Total Group net profit for 2012 before GSB impairment increased by 6% at €314.40m compared with €301.18m in 2011. Total expenses remained at the same level of 2011 reaching €169.26m despite the inclusion of one-off administrative and other expenses worth of €10.9m, as well as special financial institutions tax. As a result the cost to income ratio reached at 53.2% compared with 56% of 2011.
Total loans in 2012 reached €5.6m recording a marginal decline of 1% compared with December 2011, whereas deposits increased by 9% reaching €7.8b compared with €7.1b in 2011.
Provisions for impairment of loans for 2012 reached €162.4m registering an increase of €19.9m compared with 2011. Cumulated impairments reached €811.9m (€644.9 in 2011) which represents 14.6% of total loans.
According to the bank, net non-performing loans, which concerns loans that are not covered fully by tangible collateral and are by three months past due reached €1.04 billion compare with 720.1m in December 2011.
The group remains "sound" with loans to deposits ratio at 71.5%, whereas net loan to deposit ratio at 61.1%.