Capital Intelligence affirms Hellenic Bank’s ratings

Our News / Capital Intelligence affirms Hellenic Bank’s ratings

01 Nov 2020

International credit rating agency Capital Intelligence has affirmed the long term and short-term ratings of Hellenic Bank at ‘BB-’ and ‘B’, respectively.
CI points out that the main challenges for Hellenic are the still high NPE ratio and only moderate NPE coverage ratio, the consequent continued impairment of the capital base and the high level of real estate exposure reflecting its large book of residential mortgage loans.
“Improving the still comparatively weak profitability ratios is an additional challenge given high operating costs and the low interest rate environment.”
It is also noted that HB’s business model has improved significantly following the absorption of CCB’s extensive customer base. This has also strengthened HB’s position as the leading retail and SME bank in Cyprus.
It is added that the assets acquired contributed to more than doubling the size of the bank as well as increasing its market share in both loans and deposits.
The balance sheet composition remains conservative with a moderate level of net loans, a large portfolio of debt securities (mainly Cyprus government bonds), and a good level of liquid assets.
“Due to the large residential mortgage book and loans to the construction and real estate sectors, the Bank’s exposure to the real estate sector is high,” said CI.
https://www.financialmirror.com/2019/11/22/finance-capital-intelligence-affirms-hellenic-banks-ratings/
 

RELATED NEWS

19 Mar 2021

Good news from Rating agency, that Cyprus ‘will recover in 2H2021’

The Cyprus economy will recover in the second half of 2021 and the economic and fiscal disruption caused by the...

01 Nov 2020

Capital Intelligence affirms Hellenic Bank’s ratings

International credit rating agency Capital Intelligence has affirmed the long term and short-term ratings of Hellenic...

01 Sep 2020

Oil and Gas Conferences 2021/2022/2023

List of oil and gas conferences

26 Aug 2020

Change at Hellenic Bank after shock departure of CEO

Career banker Constantinos Loizides is returning to Hellenic Bank as its new chief executive after 15 years...

Contact us

Enter security code:
 Security code