PRESS RELEASE

 

ATTICA BANK

Q1 2013 GROUP RESULTS

 

 

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

Mr. Ioannis Gamvrilis:

 

“The improvement in the economic climate due to the successful negotiations between the Greek government and international lenders, which led to the smooth disbursement of tranches, and the prospect of success in reaching a primary surplus in 2013, have created the feeling that the Greek economy has started overcoming the economic recession. The start of the privatization program, and the expected increase in tourist arrivals in the upcoming summer season, combined with the international interest for investments in Greece, strengthen the belief that the recovery of Greece, if international obligations are complied with, if structural reforms are implemented and if  management is exercised without complacency, is not far away. Given that, Attica Bank's main objective still remains to keep its sound financial figures and combined with the share capital increase, which is now at the final approval stage, to create the conditions to provide support and liquidity to the real economy.

 

The positive equity reflects the dedication of Attica Bank to the sound management of credit risk, to the containment of operating expenses and to the control of operating risks in general.

 

The share capital increase will strengthen Attica Bank's capital base and raise capital ratios to high levels, which will allow the Bank to access low-cost liquidity and expand further, taking always into consideration the current conditions.

 

By giving priority to assisting its customers and with the support of its largest shareholder, ETAA-TSMEDE, and of its other shareholders, Attica Bank has still the answers to the problems created by the economic crisis and the recession in Greece, and lays the foundations for a healthy and autonomous growth course in future.”

 

 

KEY FINANCIAL FIGURES, Q1 2013

 

 

-         The pre-tax result of the Group for Q1 2013 was a loss of 25.9 million euros, against a loss of 24.2 million euros in Q1 2012. Respectively, the financial result after tax for Q1 2013 was a loss of 18.7 million euros, against a loss of 5.6 million euros in Q1 2012. Total comprehensive income after tax was a loss of 12.3 million euros, against a loss of 19.4 million euros on a year-on-year basis, displaying further improvement.

 

-         The Equity of the Group was 84.08 million euros.

 

-          The Total Assets of the Group were 3.8 billion euros.

 

-          The NPL ratio (loans in arrears for more than 180 days/total loans) was 21.6% as at 31/3/2013.

 

-          Provisions for credit risks were 12.1 million euros for Q1 2013, against 10.8 million euros in Q1 2012, displaying an annual increase of 12%. Accumulated provisions amounted to 373.9 million euros, displaying an annual increase of 3.3%. The coverage ratio for loans that are more than 90 days in arrears (IFRS-7) from accumulated provisions was 42.2% for Q1 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 136 bps for Q1 2013.

 

-          Net interest income for the Group was 5.3 million euros, displaying a reduction of 68.7% on a year-on-year basis, owed to the fiscal crisis inGreecewhich results in the lack of access of banks to the markets in order to raise low-cost liquidity.

 

-          Total operating income for the Group was 11.9 million euros displaying an annual reduction of 47.5%.

 

-          It should be noted that operating expenses (excluding provisions for operational risks and depreciation) were reduced by more than 19.5% and also personnel cost was reduced by 7.7%. Total operating expenses (including personnel cost) were reduced by 11.4%.

 

The effective management of the loan portfolio and overall risk of the Bank, the reduction of operating expenses, improved capital ratios after the completion of the share capital increase and 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 role that can play in the Greek economy and the exploitation of opportunities that are created despite the crisis.

 

 

ATTICA BANK S.A.

 

 

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

24/5/2013 and will be posted on the Bank's website, www.atticabank.gr .