Continued profitability, increase in market share and improvement in operational indicators that confirm its business plan and the expected benefits created by the merger with Pankritia Bankpresented today (12.12.2024) the Attica Bank for the nine months of 2024.
According to the first financial results on a consolidated basis after joining forces with Pankritia Bank, Attica Bank recorded a recurring operating profit (before provisions) of 27.3 million. euros against 11.5 million euros in the corresponding comparative period.
It is emphasized that Pancreatia Bank is consolidated for the third quarter for 26 days, i.e. after September 4, 2024, when the legal merger of the banks took place.
The recurring financial results (before provisions) of the Bank during the third quarter of the year amounted to 9.9 million. euros, achieving operating profitability for the 7th consecutive quarter and despite the highly complex conditions and volatile environment for the Bank due to the shareholders’ agreement and the uncertainty before the ratification of the agreement and the legal merger.
At the nine-month level, Attica Bank presented a 33% increase in the recurring operating income of the Group on an annual basis, which amounted to 86.2 million. euros compared to 64.7 million euros in the corresponding period of 2023. Net interest income amounted to 64.6 million. euros, registering an increase of 25%.
Excluding the contribution from Pancreatia, recurring operating income was 79.7 million. euros (+23%), while net interest income at 59.9 million euros (+16%).
The significant increase in new disbursements, amounting to 1.67 billion, contributed to this development. euros during the nine months of the year with parallel restraint of repayments.
Accordingly, the further increase in liquidity and the increase in the balances in the bond portfolio significantly strengthened the figures during the period under review.
Net commission income reached 12 million. euros increased by 81% year-on-year (or twice as much including the sizes of Pankritia Bank), as a result of not only credit expansion, but also a significant increase in the issuance of letters of guarantee, but also the management of client funds.
It is noted that after the merger with Pankritia Bank, the total funds under client management amounted to 770 million. euros at the end of the 9th month of 2024.
Recurring General Operating Expenses amounted to 58.9 million. euros, showing an increase of 11% on an annual basis, as they now include the costs of Pancreatia before achieving synergies due to the merger.
On a comparable basis, i.e. excluding the costs of Pankritia, in the context of implementing a disciplined approach with targeted investments and always in line with the Group’s strategic goals and transformation priorities, the recurring General Operating expenses amounted to 52.3 million. euros and saw a decrease of 2% on an annual basis.
Finally, in terms of net result, the Group announced losses amounting to 343.3 million. euros for the nine months of 2024, as the result was burdened by the forecasts, amounting to approximately 385 million. euros for the inclusion of the Domus portfolio in the state guarantee program “Heracles”, as well as from non-recurring expenses of 9.7 million. euros that related to actions and projects in the context of the merger with Pankritia Bank.
It is noted here that the corresponding losses of Pancreatia for the Rhodium portfolio, did not burden the result, but were transferred to the net position, as a result of the merger.
Total disbursements before provisions in the nine months amounted to 3.1 billion. euros at a consolidated level, with the Bank presenting a Net Credit Expansion of 795 million. euros, achieving a significantly higher growth rate than the average market rate.
Credit expansion came mainly from expansion in SMEs, with the infrastructure and energy sectors accounting for the largest share. Of the total disbursements, approximately 58% was channeled to small and medium enterprises.
Given the commitments and advanced discussions with customers, the Bank confirms the annual target of 2 billion. euros for new disbursements with 1 billion euro positive credit expansion that has been set, also benefiting from the Bank’s inclusion in the Recovery and Resilience Fund.
The Group’s total deposits reached the levels of 5.7 billion. euros, further strengthening the Bank’s strong liquidity profile, with the liquidity coverage ratio (LCR) standing at 172% in September 2024, well above the minimally acceptable supervisory level.
Regarding the operational developments of the Group, on 04.09.2024 the legal merger was completed with the full absorption of Pankritia Bank by Attica Bank.
On 25.09.2024, the Extraordinary General Meeting of the Bank’s Shareholders proceeded to approve the Share Capital Increase, totaling 735 million. euro, which was completed on 28.11.2024, making the new Attica Bank fully capitalized and, at the same time, marked its privatization, with Thrivest Holding now becoming the main shareholder with a percentage of 54.6%.
The pro – forma CET1 ratio, after the completion of the Share Capital Increase, the conversion of the AT1 bonds and the reduction of the risk-weighted assets by Herakles, amounts to 13.1% during the period under review.
The Group’s Non-Performing Exposures (NPE) ratio decreased to 54.1% compared to 57.7% in the previous quarter and 60.3% in the same period last year, while the NPE coverage ratio reached 70%.
It is worth noting that on November 12, 2024, Attica Bank agreed with Davidson Kempner for the disposal of two portfolios of Non-Performing Exposures (NPEs), Domus and Rhodium, with a total gross book value of approximately 3.6 billion. euro.
After the completion of the transaction and the subordination of the securitizations to the “Heracles III” guarantee program, Attica Bank is expected to have an NPE ratio below 3% at the end of the year, thus completing its consolidation. The priority of the new Bank is the successful and rapid completion and of the operational merger, implementing a structured plan, in order for both the Organization and its customers to reap the benefits of the merger as quickly as possible merger of Attica Bank – Pankritia Bank.
Already from the first day the new Bank operates as a single organization and immediately provides its customers with the possibility to carry out inexpensive transactions between the accounts of the two operating systems as well as to use the entire ATM network inexpensively, while the first common “New Start” products offering competitive pricing and flexible terms.
At the same time, the Bank entered into strategic partnerships with both SEVE and Export Credit Greece, as well as EBEA, confirming its strategic position for the continuous support on competitive terms of healthy Greek businesses.
On the occasion of the financial results for the nine months of 2024, the Managing Director of Attica Bank, Mrs. Eleni Vrettou, stated: “The results of the 3rd quarter of 2024 are the first results after the completion of the merger with Pankritia Bank and reflect both the starting point and the dynamics of the new Bank.
The combination of the two Banks created a Bank with a pan-Hellenic footprint, strong liquidity, complementary commercial activity, a broad customer base and valuable human resources.
Having now successfully completed the Share Capital Increase, we are only waiting for the final consolidation of the Bank before the end of the year, making use of the “Heracles III” guarantee program, in order to have fully implemented the Shareholders’ Agreement.
The goal in 2025 is to complete the operational merger as well, in order to achieve both the expected synergies and operating cost savings, as well as to offer our customers a unified experience, common competitive products and to continue to support with integrated solutions both the private and and their business activity”.