PRESS RELEASE      

ATTICA BANK: FY 2011 RESULTS

 

 

 

 

 

 

Statement by the Chairman of the BoD and Executive Director of the Bank, Mr. Ioannis Gamvrilis:

 

“In this critical period for Greece and the Greek banking system, Attica Bank remains resilient and focuses on supporting the Greek economy, which has always been its top priority.

 

As expected, Attica Bank's financial results for 2011 were mainly affected by its participation in the PSI program, which was completed in March 2012.

 

Once again, Attica Bank proved that strength and sustainability are not necessarily related with the size of an organization, but  are related to management decisions, the achievement of the objectives that have been set and the strategy that is being implemented by the bank.

 

With respect to the financial figures and results of fiscal year 2011, it should be stressed that Attica Bank managed to:

 

- Display satisfactory capital adequacy ratios. More precisely the core Tier I capital adequacy ratio, taking into consideration deferred tax amounts related to PSI impairments, exceeds 9%.

 

- Keep provisions for credit risks in high levels. The provisions taken for credit risk coverage in 2011 increased by 134% on a year-on-year basis.

 

- Maintain high NPL coverage ratios.

 

By giving priority to assisting its customers and with the support of its largest shareholder, ETAA-TSMEDE, as well as its other shareholders, Attica Bank has set as its key targets: a) to address the consequences of economic recession effectively and b) to contribute substantially to the recovery of the Greek economy.

 

Attica Bank's objective is to become in the future a catalyst for growth by supporting those economic sectors where growth is most likely to arise (exports, tourism, agriculture, energy, infrastructure etc.) and by maintaining its long-term growth perspective.

 

A perspective, which places Attica Bank in a healthy and autonomous course, acting as an element  of stability in the Greek banking system.”

 

 

      KEY FINANCIAL FIGURES, FY 2011

 

-          The pre-tax result of the Group for FY 2011 was a loss of 249.8 million euros, against a profit of 3 million euros in FY 2010, owed to the participation of the Bank in the PSI (Private Sector Involvement) scheme for the exchange of Greek Government Bonds (GGBs) as well as to the increase of provisions for loan losses. The results after tax are at the same level, given that part of the deferred tax assets related to the impairment of GGBs will be recognized in the future.

 

-          Profit before tax and provisions for credit and other risks was 3.8 million euros, against 45.6 million euros in FY 2010.

     

-          The Τotal Assets of the Group as at 31.12.2011 were 4.2 billion euros.

 

-          The Equity of the Group reached 259.1 million euros, due: a) to the impairment charges for the Greek Government Bonds held by the Group, resulting in a net charge of 127.6 million euros, and b) to the increase of provisions for credit risk amounting to 100 million euros in 2011.

 

-          The NPL ratio (loans in arrears for more than 180 days/total loans) was 12.8% as at 31/12/2011.

 

-          Provisions for credit risks were 253.6 million euros. Of this amount, 142 million euros refer to provisions for the impairment of GGBs. Annual provisions for delinquent loans amounted to 100 million euros in FY 2011, against 42.5 million euros for FY 2010 (+134% y-o-y). Accumulated provisions amounted to 256.8 million euros, displaying an annual increase of 40.9%. In 2011 loans amounting to 24.9 million euros were written off. 53% of non performing loans (>180 days in arrears) are covered by provisions. If loan collaterals are also taken into consideration, then the coverage ratio of non-performing loans exceeds 100% significantly. The coverage ratio for loans that are more than 90 days in arrears (IFRS-7) from accumulated provisions was 45% for FY 2011, reflecting a policy of high provisions that is being implemented consistently during the last years.

 

-          Taking  into  consideration  the  negative  conditions  prevailing in the business                 

environment it  operates  in,  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 263 bps for FY 2011.

 

-          The capital adequacy ratios of the Group stand at satisfactory levels. More precisely the capital adequacy ratio on a consolidated basis, as at 31.12.2011, was 10.7 %, whereas the Tier I capital ratio was 8.7%.

 

-          The net interest income for the Group was 97.2 million euros displaying a reduction of 15.5% on a year-on-year basis.

 

-          The net commission income for the Group was 19.9 million euros displaying an annual reduction of 37.2%.

     

-          The total operating income for the Group was 119.7 million euros displaying                 an annual reduction of 22.5%.

 

-          It should be noted that in 2011 personnel cost and general operating expenses (excluding provisions for operational risks) remained rather stable on a year-on-year basis. However, a drop in personnel costs is already being reflected on the figures of the current year.

 

In the current period, great importance is attached to overcoming the consequences of the intensified recession and underlining Attica Bank's social role, which establishes the Bank as an element of stability and social cohesion.

 

 

 

ATTICA BANK S.A.

 

Note: The Financial Statements of Attica Bank and its Group will be made public on 20/04/2012 and will be posted on the Bank's website, www.atticabank.gr