ATTICA BANK: FY 2012 RESULTS
PRESS RELEASE
ATTICA BANK: FY 2012 RESULTS
Positive Equity
Accumulated provisions increased by 41% y-o-y
High NPL Coverage Ratio
Reduced Operating Expenses
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, especially after the latest developments and the economic – banking crisis in Cyprus and the concern that is expressed for its expansion in the European periphery, Attica Bank's top priority remains the maintenance of sound financial figures, in order to create the conditions for providing liquidity and support to the real economy.
The positive equity, despite the highly increased provisions for non-performing loans and the impairment of Greek Government Bonds (GGBs) and of the Bank's shares and mutual funds, 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.
Given the uncertainty about economic developments in Greece and in the Eurozone, Attica Bank has already initiated a share capital increase in order to strenghten its 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, FY 2012
- The pre-tax result of the Group for FY 2012 was a loss of 192.02 million euros, against a loss of 249.8 million euros in FY 2011, owed to the significantly increased provisions for loan losses during 2012 as well as to the further impairment of Greek Government Bonds (GGBs) which emerged at the date of the exchange of GGBs. The exchange of GGBs according to the PSI (Private Sector Involvement) scheme was completed on 12.03.2012 and the additional charge relative to 31.12.2011 was reflected in FY 2012 financial statements. The result after tax of the Group for FY 2012 was a loss of 181.6 million euros, against a loss of 249.77 million euros for FY 2011.
- The Equity of the Group was 96.3 million euros.
- The Total Assets of the Group were 3.9 billion euros.
- The NPL ratio (loans in arrears for more than 180 days/total loans) was 19.9% as at 31/12/2012.
- Provisions for credit risks for the year that ended on 31/12/2012 were 142.9 million euros. Of this amount, 12.5 million euros refer to provisions for the impairment of GGBs. Annual provisions for delinquent loans amounted to 130.4 million euros in FY 2012, against 99.4 million euros for FY 2011. Accumulated provisions amounted to 361.8 million euros, displaying an annual increase of 41%. 49.8% of non-performing loans (>180 days in arrears) are covered by provisions.
- 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 358 bps for FY 2012.
- The net interest income for the Group was 42.1 million euros displaying a reduction of 56.6% 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.
- The total operating income for the Group was 59.4 million euros displaying an annual reduction of 50.4%.
- It should be noted that in 2012 operating expenses (excluding provisions for operational risks and depreciation) were reduced by 10% on a year-on-year basis.
- It is also noted that in 2012 personnel cost was reduced by 7% on a year-on-year basis.
Effective management of the loan portfolio and overall risk of the Bank, further reduction in operating expenses, improved capital ratios after the completion of the share capital increase 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 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
29.03.2013 and will be posted on the Bank's website, www.atticabank.gr