Attica Bank achieved strong performance, which confirms its recovery and sustainable growth path, in the first half of 2024, with a recurring operating profit (before provisions) of €17.4 million, compared to a profit of €4.5 million in the same period last year, according to the announcement.
KEY DEVELOPMENTS
Profit before tax amounted to €6.7 million, up 47% compared to the first quarter results last year. The recurring operating result for the second quarter amounted to €8.7 million. The bank recorded a 29% increase in recurring operating income, which amounted to €52.4 million in the first half of the year. Net interest income increased by 24.4% to €39.9 million as a result of a notable increase in loan disbursements during and in Q2 2024.
Net fee and commission income increased by 116%, to €7.3 million. New disbursements amounted to €676 million for H1 2024, of which €651 million was in business banking, where Attica Bank focuses. Net credit expansion was again noteworthy, amounting to €396 million for H1 2024, with the bank achieving significantly higher growth rates than the market average.
Regarding the operational developments of the Group, the Hellenic Financial Stability Fund and Thrivest Holding Ltd. signed a legally binding agreement on July 18, 2024, for the merger of Attica Bank with Pancreta Bank through the latter's absorption. After obtaining the relevant decisions and approvals, Attica Bank successfully completed within the prescribed timeframe all the actions required to achieve the legal merger with Pancretia Bank, which took place on 4 September 2024. The application for the inclusion of portfolios in the Hercules III program, an equally significant development for the consolidation of the new bank's balance sheet from NPLs, came before this on July 27, 2024.
Regarding the financial results of the first half of 2024 for the former Pancreta Bank, the profit before tax on an individual basis reached €4.1 million and on a consolidated basis €3.9 million, showing an increase of more than 100 percentage points. Net operating profit before tax, depreciation, amortization, and provisions on a consolidated basis almost doubled compared to the same period last year, reaching €12.4 million, while recurring operating profit (before provisions) amounted to €15.8 million.
The positive result was mainly due to an increase in credit expansion of €215.5 million compared to the end of 2023. New loan disbursements reached €420 million in H1 2024, and net interest income amounted to €53.2 million, an increase of 66.5% compared to the same period last year.
Net fee and commission income, which saw an increase of more than 100%, also contributed to the positive outcome. The bank made increased provisions against credit risk of €14.6 million, compared to €12.8 million in the same period last year, boosting the level of cumulative provisions for credit risk to €535.62 million in preparation for inclusion in the Hercules III program.
The positive results of the two banks in the first half of the year demonstrate the momentum they have developed and the prospects that are opening up for further strengthening their key operating indicators after the merger, leveraging the human resources of both banks, as well as the bank's expanded presence nationwide to provide the best possible customer experience.
Already in the first half of the year, the two banks together achieved a total recurring operating profit of €33.2 million. Joint deposits amount to €5.9 billion. The performance in new loan disbursements, totalling €1.09 billion, is noteworthy, with the two banks generating a net credit expansion of €611.5 million in H1 2024.
The unified bank's main goal now is to successfully and quickly merge its operations with the creation of a structured and demanding program. At the same time, it will be developing and offering customers new competitive products and services over time, using the infrastructure that already exists from both Attica Bank and the former Pancreta.
CEO STATEMENTS
Attica Bank's CEO, Ms. Eleni Vrettou, said, "The results of the first half of 2024 confirm that the bank has entered a new era of growth with a focus on meeting customer needs. We achieved significant recurring growth in operating profitability while reducing operating costs, which proves the effectiveness of the strategy we have chosen to implement. The completion of the merger of Attica Bank with Pancretia Bank will allow us to achieve even greater targets in both new disbursements and revenue generation, as well as in achieving profitability."
Attica Bank's Executive Director, Mr. Antonis M. Bartholomew, noted: "The positive financial results of the former Pancreta Bank confirm the commitment to the strategic planning of the last four years and the correctness of the management's choices. These results add to the also positive image of Attica Bank, creating the basis of a strong bank with great prospects that enhances economic growth and offers competitive and upgraded services to its customers."
