PRESS RELEASE

 

ATTICA BANK

H1 2013 GROUP RESULTS

 

 

Statement by the Chairman of the BoD and Executive Director of the Bank,

Mr. Ioannis Gamvrilis:

 

“Attica Bank, after the successful completion of its main objective which was the coverage of its capital needs and its full recapitalisation entirely by the private sector, has set the conditions to provide liquidity to the real economy, thus contributing to the recovery of the Greek economy.

 

The improvement in the economic climate due to the fulfillment of the obligations undertaken by the Greek government towards international lenders, the continuous fiscal adjustment and restructuring of Greek economy, have created hope and prospects of reaching a primary surplus with permanent characteristics already within the 2013 budget. To this direction also contributes the increase in tourist arrivals, with direct impact in the current account balance. However, it is necessary that the privatization program and the inflow of private investment capital keep on track,, so that Greece can return to a development course, thus achieving the political and social stability which are necessary for overcoming the economic recession of the country.

 

After the completion of its full recapitalization, Attica Bank is giving priority to creating internal capital through the containment of operational costs, the further upgrade of services, which has started already and is expected to expand further over the next period, and through the continuous improvement of the loan portfolio quality.

 

By giving priority to assisting its customers and with the support of its largest shareholder, ETAA-TSMEDE, and its new shareholders, Attica Bank holds the answers to the problems created by the economic crisis and the recession circle, with which Greek economy has not dealt successfully yet.”

 

 

KEY FINANCIAL FIGURES, H1 2013

 

 

-         The pre-tax result of the Group for H1 2013 was a loss of 68.0 million euros, against a loss of 96.5 million euros in H1 2012. Respectively, the financial result after tax for H1 2013 was a loss of 59.7 million euros, against a loss of 81.1 million euros in H1 2012. It should be noted that total comprehensive income after tax displayed further improvement in H1 2013 as it was a loss of 31.2 million euros, against a loss of 100.1 million euros on a year-on-year basis.

 

-         The Equity of the Group was 65.1 million euros, excluding the capital that was generated from the share capital increase and the convertible bond of the Bank, amounting to a total of 398.8 million euros.

 

-          The Total Assets of the Group were 4.0 billion euros.

 

-          The NPL ratio (loans in arrears for more than 180 days/total loans) was 22.4% as at 30/6/2013.

 

-          Provisions for credit risks were about 41 million euros for H1 2013. Accumulated provisions amounted to 402.5 million euros, displaying an annual increase of 11.3%. The coverage ratio for loans that are more than 90 days in arrears (IFRS-7) from accumulated provisions was 43% for H1 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 229 bps for H1 2013.

 

-          Net interest income for the Group was 14.8 million euros, displaying a reduction of 51.2% on a year-on-year basis, owed to the fiscal crisis inGreecewhich results in the reduction of interest income, due to the increased NPLs and the lack of access of banks to the markets in order to raise low-cost liquidity. Following the recapitalization of the Bank the liquidity cost of the Bank is expected to be reduced significantly as the cost of deposits is expected to be reduced and no recourse to the ELA is expected.

 

-          Total operating income for the Group was 26.9 million euros displaying an annual reduction of 36.8%, due to the economic recession circle that Greek economy still is in.

 

-          It should be noted that operating expenses (excluding provisions and depreciation) were reduced by 5% and personnel cost was also reduced by about 6%. Total operating expenses (including personnel cost) were reduced by 5.4%, thus maintaining for third consecutive year the downward trend of the specific expenses category.

 

Effective management of the loan portfolio and risk in general, further reduction in operating expenses, maintaining capital ratios at high levels by creating internal capital, after the recapitalisation of the Bank, which has taken place already, in conjunction with effective liquidity management are the areas that constitute immediate priorities for the Bank. The completion of the share capital increase and the successful management of the challenges presented in the abovementioned areas, are laying the foundations for the future autonomous development of Attica Bank, the special role that can play in the Greek economy and the exploitation of opportunities that are created during the crisis.

 

 

ATTICA BANK S.A.

 

 

Note: The Financial Statements of Attica Bank and its Group will be made public on

30/8/2013 and will be posted on the Bank's website, www.atticabank.gr