Optima Bank reported a net profit of €69 million for the first half of 2024, compared to €44.1 million in the first half of 2023, an increase of 57%. The bank's new target for annual profitability is set above €134 million.
The return on tangible equity in the first half of 2024 was 26.7%.
Net interest income amounted to €91.5 million, up 51% year-on-year, with a net interest margin of 4.36%, thanks to resilient loan margins.
Net fee and commission income increased by 33% year-on-year to €19.1 million, with an increased contribution from loan and asset management fees.
Operating expenses amounted to €26.6 million, up 10% year-on-year, mainly due to an increase in the number of employees. The cost-to-core revenue ratio was 25.4%, in line with the target of <30% for fiscal year 2024
The bank also announced:
- Strong start to the year in terms of credit expansion, with loan disbursements in the first half of 2024 of €1,222 million, up 27.2% year-on-year.
- Loan balances increased by €1,008 million in the first half of 2024 to €3,029 million, up 50% year-on-year.
- Strong portfolio quality, with the NPL ratio at 1.03%.
- Deposits increased by €936 million (+34% y/y) to €3,715 million.
- Strong liquidity with a loan-to-deposit ratio of 81.5%, a liquidity coverage ratio (LCR) of 262.6% and a net stable funding ratio (NSFR) of 128.8%.
- Core Tier 1 capital ratio (fully loaded) and Common Equity Tier 1 capital ratio were 15.8%, including provision for dividend distribution.
- Due to inflows of mutual funds and brokerage accounts, funds under management increased by 27% year over year to €3,681 million.
Dimitris Kyparissis, CEO of Optima bank, made the following statement:
"The economic environment remained healthy in H1 2024, with economic activity strengthening. Most fiscal indicators remained at healthy levels, with even stronger tourism and lower inflationary pressures.
Optima bank continued to leverage the solid fundamentals of the economy to expand its market share and profitability. The 1H2024 performance was particularly strong, with a net profit of €69 million, up 57% year-on-year, and an industry-high return on tangible equity of 26.7%.".
