PRESS RELEASE

Attica Bank: FY 2013 RESULTS

 

Equity: 408.2 million euros Deposits Increase: 13.5% Total Capital Adequacy Ratio: 12%

 

Statement by the Chairman of the BoD, Mr. Ioannis Gamvrilis: 

 

“The improvement in the economic climate owed to the fulfillment of the obligations undertaken by the Greek government towards international lenders and the ongoing fiscal adjustment and restructuring of the Greek economy, have led to a primary surplus. Provided that the terms of the fiscal adjustment program are complied with in the future as well, this surplus is expected to acquire permanent characteristics in the state budgets of the following years.

 

The compliance with the aforementioned terms, along with the inflow of private investment capital is mandatory in order for the country to return to positive growth rates, in a context of political and social stability.

 

After its successful recapitalization in 2013 by its main shareholder as well as by other private sector capital, Attica Bank has set the conditions for internal capital generation. The Bank's effort, has started bearing results since the end of 2013, and is estimated to be fully reflected in Attica Bank's figures for the year 2014.

 

It should be stressed that the deposits of the Group have increased by 13.5% within 2013. Consequently, Attica Bank managed to disengage from the Emergency Liquidity Assistance mechanism since the summer of 2013, reducing its financing from the European Central Bank, and improving at the same time its Loan to Deposits ratio.

 

Following the publication of the results of the capital needs assessment exercise performed by the Bank of Greece, Attica Bank, implementing its business plan, will take all necessary measures to further strengthen its profit generation capacity, examining at the same time the possibility of building strategic alliances that will lead to the full coverage of the amount estimated by the Bank of Greece.

 

The effective management of the loan portfolio along with the reduction of operational cost and the cost of deposits constitute the focus areas on which the Bank's profitability will be based in 2014.

 

By giving priority to assisting its customers and with the support of its largest shareholder, ETAA-TSMEDE, and all other shareholders, Attica Bank holds the answers to the problems created by the economic crisis and the recession circle in which the Greek economy finds itself for the sixth consecutive year, with signs of improvement, however, being already present”.

KEY FINANCIAL FIGURES

-          The pre-tax result of the Group for FY 2013 was a loss of 153.3 million euros, against a loss of 192.02 million euros in FY 2012. Respectively, the financial result after tax for FY 2013 was a loss of 112.3 million euros, against a loss of 181.6 million euros in FY 2012. It should be noted that total comprehensive income after tax displayed further improvement in FY 2013 passing to a loss of 79.4 million euros from a loss of 162.8 million euros for FY 2012.

 

-          The Equity of the Group was 408.2 million euros. 

 

 

-          The Total Assets of the Group were 4.1 billion euros.

 

-          The NPL ratio (loans in arrears for more than 180 days/total loans) was 24.6% as at 31/12/2013.

 

-          Provisions for loan losses were about 100 million euros for FY 2013. Accumulated provisions amounted to 436.4 million euros, displaying an annual increase of about 20.6%. The coverage ratio for loans that are more than 90 days in arrears was 43% for FY 2013.

 

-          Taking into consideration the negative conditions prevailing in the business environment, the Group kept on implementing the conservative provisioning policy that was introduced a few years ago, aiming at the active management of risks. The provisions/average loans ratio was 272 bps for FY 2013.

 

-          Net interest income for the Group was 46.3 million euros, displaying an increase of 10% on a year-on-year basis, owed to the reduction of the cost of deposits and the disengagement from the Emergency Liquidity Assistance mechanism.

 

-          The total operational income of the Group amounted to 71.7 million euros, displaying an annual increase of 21%.

 

-          The operational expenses of the Bank before provisions for operational risks were 37.8 million euros, reflecting a reduction of 4.3%.

 

-          The total capital adequacy ratio reached 12%, which is significantly higher than the minimum level set by Bank of Greece.

According to the results of the capital needs assessment exercise performed by the Bank of Greece, the capital needs for Attica Bank for the period from July 2013 to December 2016 were calculated at 397 million euros according to the baseline scenario of the exercise which especially for Attica Bank approaches the results of the adverse scenario. According to the adverse scenario the capital needs of Attica Bank are estimated at 434 million euros. The management of the Bank, with the strong presence of its main shareholder and continuing the operational restructuring undertaken during recent years, is in the process of drafting a capital plan and intends to take all necessary action with the aim of generating internal capital for the coverage of the Bank's capital needs and widening the Bank's shareholder basis.

ATTICA BANK S.A.

Note: The Financial Statements of Attica Bank and its Group will be made public on 31/03/2014 and will be posted on the Bank's website, www.atticabank.gr