ΑΓΡΟΤΙΚΗ ΤΡΑΠΕΖΑ ΤΗΣ ΕΛΛΑΔΟΣ Α.Ε.
Nine Months 2008 Financial Results
- Resilient core business performance despite unstable global economic environment
- Net Profits stood at euro 83.8m
- Customer Loans grew by 21.3% - Household lending expanded above market rate (at 28.5%) and SME portfolio accelerated further by 61.6%
- Deposits grew by 3.1%, at relatively low cost (2.35%)
- Loans/ Deposits ratio (at 95.2%) still leaves room to fund growth from low cost resources
- Operating expenses grew at moderate rates (+6.9%, now including 2008 salary increases)
- NPLs continued to decline reaching 6.9% in 9M 08 vs 10.6% in 9M 07
ATEbank's consolidated profits after tax and minority interest reached euro 83.8 million in the first 9-months of 2008 compared to euro 219.1 million in the respective period of 2007. The profitability of the first 9 months of 2008, compared to the corresponding period in 2007, was affected both by the turbulence in the financial markets as well as by the fact that last year's results included significant non recurring gains.
Interest income from loans reached euro 872.9 million at the end of September 2008, a 18.4% increase compared to euro 737.3 million at the end of September 2007, as a result of the credit expansion and the significant interest revenues from bonds. Net interest income reached euro 462.0 million, compared to euro 455.0 million in the corresponding period in 2007, up by 1.6%, affected by the significant increase of interest expenses as a result of the growth of higher interest rate time deposits and the exceptionally high interest rates in the interbank market especially during the last quarter. As a result, the Net Interest Margin stood at the end of September 2008 at the level of 2.91%.
Net fee and commission income reached at the end of September euro 66.7 million an increase of 6.9%, including a non-recurrent amount of 8.4 million.
Other non-interest and non-fee income was negatively affected by weaker equity markets, reaching euro 42.3 million compared to euro 189.1 million during the first 9 months of 2007. This reduction was due to significant differences on net trading income between the two reporting periods (total difference euro 73.6 million) and non-recurring capital gains of euro 80.5 million on disposals of the available for sale portfolio in the first 9 months of 2007.
Operating expenses showed an increase of 6.9% compared to the corresponding period last year, reaching euro 398.0 million. We have to note that Q3 2008 figures are affected by the 2008 salary increases which were pending in the previous quarters and also by the termination of the EU subsidies to the subsidiary Hellenic Sugar Company. The Group Cost to Income ratio stood at 69.7%.
Total loans before provisions reached euro 18.8 billion at the end of September 2008, an increase of 21.3% compared to the end of September 2007. Net customer loans at the end of the first nine months of 2008 reached euro 18.0 billion, an increase of 25.9% compared to the end of the first nine months of 2007.
The household loan portfolio continued its impressive growth reaching as of 30 September 2008 euro 7.4 billion compared to euro 5.8 billion as of 30 September 2007, an increase of 28.5%, significantly higher than the market growth. The mortgage loan portfolio increased at slightly lower rates than the previous quarter, at 23.3%, reaching euro 5.9 billion. The increase of the consumer loan portfolio slowed down marginally, still at the high rates of 55.3%, reaching euro 1.1 billion, while credit card lending accelerated, by 49.6%, reaching euro 422.8m. Penetration of the SME market gains momentum, with the portfolio growing from a low base at 61.6% and reaching euro 1.7 billion.
The continuous increase of the household and SME loans' share in the bank's overall portfolio (48.1% in Q308 compared to 43.7% in Q307) indicates the ability of ATEbank to become a major player in areas which until a few years ago it had small presence. During the current unstable economic conditions, the aim is to maintain and if possible to gain further targeted market share in sectors which can produce relatively higher returns, without however compromising loan quality which remains a major priority for ATEbank.
Total NPL ratio continued its downward trend at 6.9% in 30 September 2008 from 10.6% in the end of September 2007. Despite the steady improvement of the NPL ratio, ATEbank increased the impairment losses on loans, at euro 70.3 million at the end of September 2008 compared to euro 60.6 million in the corresponding period in 2007. ATEbank plans to gradually raise the level of the cost of risk in order to be protected in the event that the economic slowdown affects loan quality. The abovementioned increase will also improve the provisioning coverage ratio, which, due to the euro 469 million of write-offs during the period October 2007-September2008, stood at 67.4%. It must be noted though that due to the write-offs the value of the collaterals on the remaining NPLs has significantly improved.
Customer deposits increased moderately by 3.1% at euro 19.8 billion, mainly affected by the reluctance of ATEbank to offer very high rates on time deposits. As a result, loans to deposits ratio stood at the end of September 2008 at 95.2%. Such a ratio still provides room for growth from own resources at relatively low cost (2.35%), something extremely advantageous in the present challenging credit conditions. ATEbank monitors closely the Greek deposit market and is taking necessary actions to defend its market share.
As at the end of September 2008, ATEbank's Tier I Capital Ratio stood at 7.3% while its total capital adequacy ratio stood above the minimum regulatory level, at 8.92%.
ATEbank intends to participate in the support plan for banks that was recently introduced in the Greek parliament with the aim to promote general economic activity by financing households and small enterprises.
Undoubtedly, ATEbank's profitability in the first nine-months of 2008 was affected by the negative developments in the debt and capital markets, especially if compared with the corresponding period in 2007 when the Bank had significant non-recurring revenues and trading gains. Nevertheless, in the first nine months of 2008 ATEbank presented a resilient performance and growth in its core business, gaining market share in the retail segment and further improving its loan quality. ATEbank has nowadays the capacity and capability, with steady and safe steps, to overcome the difficult economic environment.
Please click at the link http://www.atebank.gr/english to find more information
- Net Profits stood at euro 83.8m
- Customer Loans grew by 21.3% - Household lending expanded above market rate (at 28.5%) and SME portfolio accelerated further by 61.6%
- Deposits grew by 3.1%, at relatively low cost (2.35%)
- Loans/ Deposits ratio (at 95.2%) still leaves room to fund growth from low cost resources
- Operating expenses grew at moderate rates (+6.9%, now including 2008 salary increases)
- NPLs continued to decline reaching 6.9% in 9M 08 vs 10.6% in 9M 07
ATEbank's consolidated profits after tax and minority interest reached euro 83.8 million in the first 9-months of 2008 compared to euro 219.1 million in the respective period of 2007. The profitability of the first 9 months of 2008, compared to the corresponding period in 2007, was affected both by the turbulence in the financial markets as well as by the fact that last year's results included significant non recurring gains.
Interest income from loans reached euro 872.9 million at the end of September 2008, a 18.4% increase compared to euro 737.3 million at the end of September 2007, as a result of the credit expansion and the significant interest revenues from bonds. Net interest income reached euro 462.0 million, compared to euro 455.0 million in the corresponding period in 2007, up by 1.6%, affected by the significant increase of interest expenses as a result of the growth of higher interest rate time deposits and the exceptionally high interest rates in the interbank market especially during the last quarter. As a result, the Net Interest Margin stood at the end of September 2008 at the level of 2.91%.
Net fee and commission income reached at the end of September euro 66.7 million an increase of 6.9%, including a non-recurrent amount of 8.4 million.
Other non-interest and non-fee income was negatively affected by weaker equity markets, reaching euro 42.3 million compared to euro 189.1 million during the first 9 months of 2007. This reduction was due to significant differences on net trading income between the two reporting periods (total difference euro 73.6 million) and non-recurring capital gains of euro 80.5 million on disposals of the available for sale portfolio in the first 9 months of 2007.
Operating expenses showed an increase of 6.9% compared to the corresponding period last year, reaching euro 398.0 million. We have to note that Q3 2008 figures are affected by the 2008 salary increases which were pending in the previous quarters and also by the termination of the EU subsidies to the subsidiary Hellenic Sugar Company. The Group Cost to Income ratio stood at 69.7%.
Total loans before provisions reached euro 18.8 billion at the end of September 2008, an increase of 21.3% compared to the end of September 2007. Net customer loans at the end of the first nine months of 2008 reached euro 18.0 billion, an increase of 25.9% compared to the end of the first nine months of 2007.
The household loan portfolio continued its impressive growth reaching as of 30 September 2008 euro 7.4 billion compared to euro 5.8 billion as of 30 September 2007, an increase of 28.5%, significantly higher than the market growth. The mortgage loan portfolio increased at slightly lower rates than the previous quarter, at 23.3%, reaching euro 5.9 billion. The increase of the consumer loan portfolio slowed down marginally, still at the high rates of 55.3%, reaching euro 1.1 billion, while credit card lending accelerated, by 49.6%, reaching euro 422.8m. Penetration of the SME market gains momentum, with the portfolio growing from a low base at 61.6% and reaching euro 1.7 billion.
The continuous increase of the household and SME loans' share in the bank's overall portfolio (48.1% in Q308 compared to 43.7% in Q307) indicates the ability of ATEbank to become a major player in areas which until a few years ago it had small presence. During the current unstable economic conditions, the aim is to maintain and if possible to gain further targeted market share in sectors which can produce relatively higher returns, without however compromising loan quality which remains a major priority for ATEbank.
Total NPL ratio continued its downward trend at 6.9% in 30 September 2008 from 10.6% in the end of September 2007. Despite the steady improvement of the NPL ratio, ATEbank increased the impairment losses on loans, at euro 70.3 million at the end of September 2008 compared to euro 60.6 million in the corresponding period in 2007. ATEbank plans to gradually raise the level of the cost of risk in order to be protected in the event that the economic slowdown affects loan quality. The abovementioned increase will also improve the provisioning coverage ratio, which, due to the euro 469 million of write-offs during the period October 2007-September2008, stood at 67.4%. It must be noted though that due to the write-offs the value of the collaterals on the remaining NPLs has significantly improved.
Customer deposits increased moderately by 3.1% at euro 19.8 billion, mainly affected by the reluctance of ATEbank to offer very high rates on time deposits. As a result, loans to deposits ratio stood at the end of September 2008 at 95.2%. Such a ratio still provides room for growth from own resources at relatively low cost (2.35%), something extremely advantageous in the present challenging credit conditions. ATEbank monitors closely the Greek deposit market and is taking necessary actions to defend its market share.
As at the end of September 2008, ATEbank's Tier I Capital Ratio stood at 7.3% while its total capital adequacy ratio stood above the minimum regulatory level, at 8.92%.
ATEbank intends to participate in the support plan for banks that was recently introduced in the Greek parliament with the aim to promote general economic activity by financing households and small enterprises.
Undoubtedly, ATEbank's profitability in the first nine-months of 2008 was affected by the negative developments in the debt and capital markets, especially if compared with the corresponding period in 2007 when the Bank had significant non-recurring revenues and trading gains. Nevertheless, in the first nine months of 2008 ATEbank presented a resilient performance and growth in its core business, gaining market share in the retail segment and further improving its loan quality. ATEbank has nowadays the capacity and capability, with steady and safe steps, to overcome the difficult economic environment.
Please click at the link http://www.atebank.gr/english to find more information