Attica Bank: Q3 2019 Financial Results

- Increase of deposits by 18.3% yoy
- Net Loans / Deposits Ratio amounted to 61.5%, marginally decreased by 8 bps compared to 31.12.2018 and significantly lower compared to 30.06.2018 (by 34 bps)
- Net Loans decreased by 3% compared to 31.12.2018
- Total Assets increased by 2.8% to €3,444 mln compared to 31.12.2018
- New financing and refinancing amounted to €75 mln
- Reduction of total operating expenses by 13.2% yoy
- NPE Cash Coverage Ratio: 32.2%
- Total Capital Adequacy Ratio: 15.0%
- Total Equity remained stable at €489 mln

Management Statement 

Attica Bank’s financial results for the third quarter of 2019 remain positive and is a confirmation of the continuous effort of the Bank for enhancing its profitability and the restoration of its balance sheet.

The Group, for another quarter, continued to improve its liquidity, as deposit balances increased by 18.3% compared to the comparative period of 2018. This led to a decrease in the loans to deposits ratio from 95.4% to 61.5% in one year.

With regard to new loans’ balances, the first nine month period of 2019 new financing and refinancing amounted to approximately €75 mln showing that Attica Bank continues to expand its market position.

In terms of profitability, operating costs (excluding depreciation costs) decreased by 9% annually on a recurring basis. The constant decline in operating costs as well as significant gains from financial transactions offset the lower revenues during the third quarter.

The Bank’s performance during the third quarter displays that the Bank has completely restored the depositors’ confidence and continues to work so as to increase the loans’ portfolio base. The acceleration of economic activity in correlation with the macroeconomic conditions are expected to boost domestic demand and therefore demand for capital.

The Board of Directors is confident that the Bank will achieve the business’ objectives that has set for increasing the size of the Bank through the expansion of its products and the cost containment through a more efficient operation.

Key Points of the Balance Sheet

- Group’s Total Assets amounted to 3.4 billion euros and its structure remained rather stable.  Gross loans amounted to 1.8 billion euros while net loans amounted to 1.5 billion euros remaining at almost the same level as at 31.12.2018. New financing and refinancing for the period amounted to approximately 75 million euros.

- The accumulated provisions for impairment losses on loans and advances to customers stood at 268 million euros. For Q3 2019, the total provisions amounted to 18.5 million euros compising of provisions for impairment losses on loans and advances to customers amounted to 15.4 million euros and for FVTOCI financial assets portfolio of 8.3 million euros, while provisions for impairment on off balance sheet items and on other assets were reversed by 5.2 million euros.

- NPE ratio stands at 39.4% (2018: 33.5%) and NPE cash coverage ratio amounted to 32.2% (2018: 34%) without taking into account any collaterals.

- Deposits amounted to 2.5 billion euros, up by 18.3% compared to 30.09.2018.  Loans to Deposits ratio (after provisions) stood at 61.5% for the Group marginally lower compared to 31.12.2018 and significantly decreased compared to 30.09.2018 (95.4%). Loans to Deposits ratio (before provisions) for the Group amounted to 72.3% as at 30.09.2019 and appears to be lower compared to 31.12.2018 (80.9%).

Full Press Release