Attica Bank S.A. released Q3 2013 Group results

• Profit before provisions: 2 million euros for Q3 2013
• Equity: 447 million euros
• High NPL coverage ratio

Athens, Greece, 10-12-2013 — /EuropaWire/ — 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 the full recapitalisation solely 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 which will be a result of the fulfillment of the obligations undertaken by the Greek government towards international lenders, the continuous fiscal adjustment and restructuring of Greek economy, will certainly create a primary surplus with permanent characteristics already within 2013 budget. However, the compliance with the terms and conditions of the economic adjustment program and the inflow of private investment capitals are necessary, so that Greece can return to a development course, thus assisting in political and social stability which is necessary for overcoming the economic recession of the country.

After the completion of its full recapitalization, Attica Bank is giving priority in creating internal capital through the containment of operational cost, the further upgrade of its services and through the continuous improvement of the loan portfolio quality. Already in the third quarter of 2013 the Bank’s results before provisions have returned to a profitable track. Upon the completion of the restructuring actions and the reduction of operating costs which will take place during the last quarter of the year, it is expected that the Bank’s results from next year and onwards will follow a solidly profitable course.

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

KEY FINANCIAL FIGURES

• The pre-tax result of the Group for Q3 2013 was a loss of 79.3 million euros, against a loss of 123.8 million euros in Q3 2012. Respectively, the financial result after tax for Q3 2013 was a loss of 69.2 million euros, against a loss of 108.4 million euros in Q3 2012. It should be noted that total comprehensive income after tax displayed further improvement in Q3 2013 as it was a loss of 41.8 million euros, against a loss of 124.1 million euros on a year-on-year basis.
• The results before provisions for Q3 2013 were a profit of about 2 million euros.
• The Equity of the Group was 447.1 million euros.
• The Total Assets of the Group were 3.95 billion euros.
• The NPL ratio (loans in arrears for more than 180 days/total loans) was 23.2% as at 30/9/2013.
• Provisions for credit risks were about 52.7 million euros for Q3 2013. Accumulated provisions amounted to 414.4 million euros, displaying an annual increase of about 15%. The coverage ratio for loans that are more than 90 days in arrears (IFRS-7) from accumulated provisions was 42.4% for Q3 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 194 bps for Q3 2013.
• Net interest income for the Group was 30.7 million euros, displaying a reduction of 20.6% on a year-on-year basis, owed to the fiscal crisis in Greece which 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. It is noted that after the Bank’s recapitalization since July 2013 the funding cost for the Bank has been significantly reduced due to the disengagement from the Emergency Liquidity Assistance (ELA) and the de-escalation of deposit rates.
• Total operating income for the Group was 54.2 million euros displaying an annual reduction of 6.4%.
• Operating expenses were increased by about 10% due to the share capital increase expenses. It should be also noted that personnel cost was reduced by about 4% on a year-on-year basis.

Effective management of the loan portfolio and overall risk of the Bank, further reduction in operating expenses, maintaining capital ratios at high levels by creating internal capital, after the recapitalisation of the Bank, which is already completed, 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 and the special role that can and must play in the Greek economy.

ATTICA BANK S.A.

Note: The Financial Statements of Attica Bank and its Group will be made public on 29/11/2013 and will be posted on the Bank’s website, www.atticabank.gr