Profit attributable to shareholders was €12.1m. In the fourth quarter alone, post-tax profit was €6.3m, compared with €6.2m in the previous period.

The performance came despite the bank having to set aside provisions against bad loans of €100.8m for the year and €41.7m for the fourth quarter under pressure from the eurozone supervisors.

“I am very pleased to announce that Hellenic Bank has closed the year 2015 with a profit of €13 million compared to a loss of €118 million the previous year,” said Hellenic Bank Chief Executive Officer Bert Pijls.

“I highlight that we have achieved this whilst taking all provisions as guided by our Regulators, which totalled €71 million. I am also pleased that we have continued to make significant progress towards our two strategic priorities: reducing non-per forming exposures (NPE), and growth.”

Non-performing loans (NPLs) dropped to €2.60bn in the fourth quarter from €2.68bn in the third. The NPL ratio on a European Banking Authority basis therefore declined to 59.2%, from 61.2% in the previous period.

“2015 was a profitable year for the Hellenic Bank Group despite the difficult and challenging economic environment and the increased requirements of the Single Supervisory Mechanism (SSM),” the bank said in a press release.

“As the preliminary results for 2015 approved by the Board of Directors today show, the strategy of reforms has started to deliver results.”

The coverage ratio of non-performing exposures – meaning accumulated provisions as a proportion of NPLs – increased from 46% to 50%. The bank said that this ratio is “in line with the EU average”.

Despite falling interest rates, net interest income increased by 6% in the fourth quarter of 2015 to €37.1m from €34.9m in the third quarter.

“The increase reflects the repricing of the loans and deposits which came into force in the beginning of 2015”, the bank said.

The Group’s non-interest income rose to €43.1m up from €22.4m in the third quarter of 2015. This increase is mainly due to a profit of €16.7m from the sale of Cyprus Government Registered Development Stock (GRDS) – domestic government bonds.

Hellenic Bank has a strong liquidity position with deposits exceeding loans. On December 31, total gross loans reached €4.4bn while deposits reached €6.1bn.

Source: InCyprus