Symbol go
GD         Turnover  mln.

Attica Bank: 9M Financial Results

Statement by the Chairman of the BoD and Executive Director of the Bank,
Mr. Ioannis Gamvrilis:

“In this critical period, keeping its sound financial figures remains the key objective for Attica Bank. It is only in this way that the Bank can continue to support Greek businesses and the Greek economy as a whole, which has always been its top priority.

- By keeping high levels of provisions
- By maintaining high NPL coverage ratios
- By displaying high capital adequacy ratios

Attica Bank proves its commitment to the effective management of credit risk and the protection of its long-term sustainability.  

Taking into consideration the pessimistic forecasts on the economic developments in Greece, Attica Bank remains prepared and examines all available alternatives in order to be in a position to address possible stresses that may affect the capital adequacy and the liquidity of the Greek banking system negatively.

By giving priority to assisting its customers in these difficult times, and having the support of ETAA-TSMEDE, its largest shareholder, Attica Bank keeps absorbing the shocks of the recession and lays the foundations for a healthy and autonomous course in the future,  fully conscious of its social mission.”  


- The pre-tax result of the Group for Q3 2011 was a loss of 93 million euros, against a profit of 3.3 million euros in Q3 2010, owed to the impairment of Greek Government Bonds during H1 2011 and the increase of provisions for credit risk. Respectively, the financial result after tax, was a loss of 85.7 million euros, against a loss of 3.9 million euros in Q3 2010.

- Pre-tax profit before provisions for credit and other risks was 10.2 million euros, against 35.5 million euros in Q3 2010.

- The otal Assets of the Group were 4.3 billion euros.

- The Equity of the Group reached 413.5 million euros, due to the impairment of Greek Government Bonds, the increase of provisions for non performing loans and the valuation differentials of the Bank’s available for sale securities.

- The NPL ratio (loans in arrears for more than 180 days/total loans) was 10.9% as at 30/9/2011.

- Provisions for credit risks were 103.2 million euros. From this amount 52.9 million euros refer to the impairment of GGBs. Provisions for delinquent loans amounted to 50.3 million euros in Q3 2011, against 32.2 million euros for Q3 2010, increased by 56%. Accumulated provisions amounted to 224.6 million euros, displaying an annual increase of 22%. In Q3 2011 loans amounting to 8 million euros were written off. 53.2% of non performing loans (>180 days in arrears) are covered by provisions. If loan collaterals are also taken into consideration, then the coverage ratio of non performing loans exceeds 100% significantly. The coverage ratio for loans that are more than 90 days in arrears (IFRS-7) from accumulated provisions was 47.6% for Q3 2011, reflecting a policy of high provisions that is being implemented consistently during the last years.

- The capital adequacy ratios of the Group stand at high levels. More precisely the capital adequacy ratio on a consolidated basis, as at 30.09.2011, was 15.9%, whereas the Tier I capital ratio (Tier I) was 13.9%.

- 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 177 bps for Q3 2011.

- Net interest income for the Group was 77.1 million euros displaying a reduction of 13.76% on a year-on-year basis.

- Net commission income for the Group was 14.7 million euros displaying an annual reduction of 26.2%.

- Total operating income for the Group was 95 million euros displaying an annual reduction of 17.2%.

- Total operating expenses for the Group (excluding provisions for operational risks) displayed an annual reduction of 6.2%.

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

Effective Loan Portfolio Management, adequate liquidity and capital adequacy ratios, and operating cost containment are top priorities for the Bank. The successful management of the challenges present in these areas lays the path for the autonomous development of Attica Bank in the future.
Follow to Social Media
  Did you find this article interesting?: