Operating organic profitability for the fifth consecutive quarter was announced today by Attica Bank.

In particular, as stated in today’s announcement, the Bank presented a significant improvement in all functional lines of the Group’s organic sizes, with recurring operating profits (before provisions) of 8.7 million euros for the first quarter of 2024, against profits of 0, 5 million euros in the corresponding period of 2023 mainly due to the increase in interest income and the continued reduction of the cost base in the context of the implementation of its Business Plan.

The results, the announcement states, are fully aligned with the goals and strategy of the Bank’s Management and lay the foundations for the dynamic development of Attica Bank in the banking market and the achievement of the year’s goals.

Attica Bank continued to improve all key financial indicators, with an emphasis on operational profitability through diversification of revenue sources, rationalization of operating costs and careful management of credit risk.

The Bank recorded an increase in recurring operating income on an annual basis by 138%, which amounted to 25.3 million euros compared to 18.3 million euros in the corresponding comparative period, boosted mainly by the favorable interest rate environment, as well as by the remarkable credit expansion during and in the first quarter of 2024. a net recurring income on an annual basis respectively improved by 36.3%, a result of new disbursements as well as an increase in interest income from loans and receivables from customers. The increase was offset by the significantly higher cost of financing the Bank’s operations compared to the comparative period of 2023, as a result of the adjustment of deposit products to the new market interest rates. Accordingly, net revenue from commissions stood at Euro 3.1 million, an increase of 78% year-on-year, driven mainly by higher production, expansion of operations and emphasis on the issuance of letters of guarantee.

Grants before provisions amounted to 3.63 billion euros in the period under review, while new disbursements also accelerated during the first quarter of 2024 and amounted to 295 million euros, of which 283 million euros concern business banking and the 12 million euros retail banking.

Attica Bank maintains sufficient liquidity with the Group’s total deposits reaching the level of 3.1 billion euros during the first quarter of 2024, with the liquidity coverage ratio (LCR) reaching 268.6%. The liquidity profile is also reflected in the ratio of loans (before provisions) to deposits of the Group, which reached 47.6% (excluding securitizations).

At the level of capital adequacy, the CET1 ratio reached 10.8% on a quarterly basis, due to the accounting adjustments from the transitional provisions of IFRS 9 and the strong credit expansion that occurred in the first quarter of the year as well.

The Group’s Non-Performing Exposures (MEAs) showed an increase of 12% compared to the previous quarter, due to the transfer of older loans of the Bank’s legacy portfolio to MEA status, in the context of the final consolidation of the Bank’s balance sheet and transparency. Excluding legacy portfolio allocations, the MEA ratio stood at 54.2%, down 270 basis points quarter-on-quarter and 11.6 percentage points year-on-year. It is noted that default rates on new production for loans disbursed from 2021 are less than 1%.

With reference to the Bank’s strategic planning, the further consolidation of the balance sheet will be examined in parallel with the final inclusion of part of its MEAs in the “Heracles III” guarantee program, at the same time as the preparatory actions for the possible merger with Pankritia Bank, for the which currently no decision has been taken by the competent bodies of the Bank. Any decision on the part of the Management to belong to the “Heracles III” program will be taken under the assessment of the impact it will bring to the Bank’s results and only on the condition that any impact will be compensated by other corresponding capital strengthening actions as a result of the agreement between of the main shareholders of the Bank.

The Managing Director of Attica Bank, Mrs. Eleni Vrettou, said in this regard: “2023 was the year that the Bank returned to operational profitability, while the trend continues dynamically in 2024 as reflected by the results of the first quarter. The positive credit expansion in a market that basically moved negatively in the first quarter confirms not only the dynamics of the Bank, but also its commercial appeal, along with the need for more alternatives for the customer in the Greek banking system.

Strategically, after achieving increasing profitability, our goal remains the complete consolidation, enlargement and modernization of the Bank with high liquidity and a satisfactory capital base.

In this regard, we expect the achievement of a definitive shareholder agreement in the immediate future that will allow us to proceed with our planning both for the possible inclusion of the Bank in the “Heracles III” plan, as well as the achievement of the merger with Pankritia Bank and subsequent recapitalization. Our main ambition is for the 5th banking pillar under construction to once again focus on the customer and their best service regardless of size, improving their banking experience not only digitally, but also substantively, thanks to immediacy and flexibility. We practically support the growth and modernization of Greek businesses and the transition of the Greek economy to a new, sustainable, digital and extroverted development model, making the Bank itself an example of this transition.”