Attica Bank: H1 2012 and Q3 2012 Financial Results

Provisions for credit risk increased significantly and NPL coverage ratios remain high

2-1-2013 — /europawire.eu/ — Statement by the Chairman of the BoD and Executive Director of Attica Bank,

Mr. Ioannis Gamvrilis:

«In this critical period for Greece and the Greek banking system, the Bank continues to aim for sound financial figures, in order to continue to support the Greek economy, which has always been its top priority.

The Bank’s positive own equity, despite the significant increase of provisions for credit risk and the impairment losses for Greek Government Bonds, proves the insistence of the Management of the Bank on sound risk management practices.

Given the uncertainty surrounding future economic developments and the need for a stable and reliable economic environment, Attica Bank remains alert and assesses all available alternatives in order to be in a position to face the situation that has emerged in the Greek banking system and which has had a negative impact on the capital adequacy and liquidity of the Greek banking system.

By giving priority to assisting its customers and having the support of its largest shareholder, ETAA-TSMEDE, as well as its other shareholders, Attica Bank continues to address the consequences of economic recession effectively and sets the perspective of a financially sound autonomous course of growth in the future.»

KEY FINANCIAL FIGURES,

–       The pre-tax result of the Group for H1 2012 was a loss of 96.5 million euros, against a loss of 71.7 million euros in H1 2011. The amount of the loss is owed mainly to the increase of the provisions for credit risk taken in H1 2012 and the impairment of the Greek bond portfolio of the Bank, which occurred during the exchange date of 12.03.2012 within the terms of the PSI (Private Sector Involvement) program of Greek Government Bonds. Thus the additional- with reference to 31.12.2011- loss affected the H1 2012 results. Respectively, the financial result after tax for H1 2012 was a loss of 81.1 million euros, against a loss of 64.9 million euros in H1 2011.

–       The pre-tax result of the Group for Q3 2012 was a loss of 123.8 million euros against a loss of 89.6 million in Q3 2011. The result after tax was a loss of 108.4 million euros against a loss of 82.9 million euros in Q3 2011.

–          The total assets of the Group were 3.95 billion as at 30/06/2012 and 3.99 billion as at 30/09/2012.

–          The own equity of the Group was 159 million euros as at 30/06/2012 and 135 million euros as at30/09/2012.

–          Provisions for credit risk were 88.7 million euros for the six-month period ending on 30/06/2012. Thisamount includes 11.8 million euros related to the impairment losses for Greek Government Bonds. The provisions for non-performing loans amounted to 77 million against 26.3 million euros for H1 2011. Accumulated provisions amounted to 333.2 million euros, increased by 29.8% on a year-on-year basis. Provisions covered 48% of non-performing loans.

–          Provisions for credit risk amounted to 106.7 million euros for the nine-month period ending on30/9/2012. This amount includes 11.8 million euros related to the impairment losses for Greek Government Bonds. The provisions for non-performing loans for the nine-month period ending at 30/9/2012 were 95 million euros against 50.3 million euros for Q3 2011. Accumulated provisions amounted to 351.2 million euros, displaying an annual increase of 36.8%. Provisions covered 49% of non-performing loans.

–          The Group, taking into consideration the negative conditions prevailing in the business environment it operates in, 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 423 bps on 30/6/2012 and 347 bps on 30/9/2012.

–          Net interest income for the Group was 30.3 million in H1 2012 euros displaying a reduction of 41.3% on a year-on-year basis. Respectively for Q3 2012 the net interest income for the Group was 38.7 million euros displaying an annual reduction of 49,8%.

–          Total operating income for the Group was 42.5 million euros in H1 2012, displaying reduction of 34% on annual basis. For Q3 2012 total operating income stood at 57.8 million euros, displaying a reduction of 39.5% with regard to Q3 2011.

–          It should be noted that operating expenses including personnel costs were down by 16% in H1 2012. The same reduction can be observed in Q3 2012, too.

In the current period the Bank is focused on overcoming the consequences of the intensified recession and on retaining Attica Bank’s social image, which establishes the Bank as an element of stability and social cohesion.

The Bank sets among its highest priorities the effective loan management portfolio, the display of sufficient liquidity, the maintenance of high adequacy levels and the further containment of the operating. The effective management of the above mentioned challenges sets Attica Bank in a future autonomous course.

ATTICA BANK S.A

Note: The Financial Statements of Attica Bank and its Group have been made public on 21/12/2012 and will be posted on the Bank’s website, atticabank.gr

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