Gold Magazine June - July 2013, Issue 27 | Page 33

Marinos Athanassiades
Group Global Markets &
International Banking
thing else too: that it does not necessarily
accept that PIMCO’s evaluation is correct
and therefore will question it. In any case,
if Hellenic fails to raise the necessary capital
independently, it will not have a problem
since the MoU removes any uncertainty by
stipulating that, if necessary, public programme funds will be used to recapitalise
Hellenic Bank and any other credit institutions that might need it.
On 31 March 2013, the Bank’s main
shareholders were the Archbishopric of Cyprus and its related parties with a total stake
of 19.6%, the investor Fatkhullin Renat
with 6.5%, the multinational financial services company Credit Suisse AG with 5.9%
and the Bank of Cyprus Group with 5.2%.
In total, international investors hold around
36% of Hellenic Bank.

Petros Ioannides
Overseas Operations

He was employed
by Hellenic Bank on
July 2007 to head its
Group Credit Risk
department and
implement the BASEL
II agreement. Prior to
joining Hellenic Bank
he was part of the
HSBC team in Cyprus
and abroad. From
2009-2011 he was
Head of Group Corporate Banking before
being promoted to
General Manager,
Overseas Operations,
to manage the operations of the Group in
Greece and Russia.
He is a member of
various committees
within the Bank.

The bank maintains a strong franchise
within Cyprus with a market share of 12.2%
in total deposits in Cyprus and 7.9% in total
loans at the end of March 2013, according
to its most recent financial results presentation to international investors. Customer
deposits recorded a decrease of 12% to
€6.9 billion compared to €7,8 billion in
December 2012 (including the portfolio of
the branch network in Greece). Customer
deposits in Cyprus amounted to €6.9 billion, a fall of 4% from December 2012.
Hellenic Bank posted a €31.7 million loss
in the first quarter of 2013, taking a hit from
higher provisioning for bad loans and from
lower Net Income. Group provisions for
non-performing loans more than doubled
to €56.4 million from €24.1 million a year
earlier, reflecting a deteriorating economic
environment.
The Hellenic Bank Group claims to
maintain comfortable liquidity, benefiting
from its high stable deposit base. Specifically, in March 2013 the ratio of gross loans to
deposits remained at 66.6% while the ratio
of net loans to deposits was 58.6%. Zero
funding from the European Central Bank,
zero raised liquidity from the Emergency
Liquidity Assistance (ELA) and non-dependence on the interbank market all indicate
the comfortable liquidity of the Group.
Under Pillar 1 of Basel II, the Group’s
Capital Adequacy Ratio at 31 March 2013
was at 14.7% (December 2012: 13.6%), the
Tier 1 Ratio was 11.3% (December 2012:
10.9%) and the Core Tier 1 Ratio was 8.3%
(December 2012: 8.2%). Correspondingly,
the minimum required supervisory ratios
for Hellenic Bank, taking into account the
increment, which is calculated based on
the percentage of the bank’s assets over the
Gross Domestic Product of the Republic of
Cyprus, enforced from 31 December 2012,
are 11.7% (Capital Adequacy ratio), 9.7%
(Tier 1 ratio) and 8.2% (Core Tier 1 ratio).

1997 The Limassol International
Business Centre acquires ISO 9002
service quality certification – the
only centre of its kind in Cyprus to
do so. • The Card Services Department launches the first credit card
in association with Mastercard,
targeting the travel and entertainment sector.

opens in the Kolonaki area of central
Athens. Representative Offices are
opened in Sandton (South Africa) and
Moscow.

1998 The first branch of Hellenic Bank

2000 Hellenic Alico Life Insu &