kathimerini.gr
Attica Bank Reports Operating Profit but Net Loss After Merger and Loan Provisions
Attica Bank announced a €27.3 million operating profit in the first nine months of 2024 after absorbing Pancretian Bank, but a net loss of €343.3 million due to €385 million in provisions under the "Hercules" program and €9.7 million in merger expenses; the bank aims for an NPE ratio below 3% by year-end and completed a €735 million capital increase.
- How did the provisions for non-performing loans and merger-related expenses affect Attica Bank's financial results during the first nine months of 2024?
- The €385 million provision for the Domus portfolio reflects Attica Bank's participation in the "Hercules" program designed to reduce non-performing loans in the Greek banking system. The merger with Pancretian Bank and subsequent capital increase (€735 million) aim to strengthen the bank's financial position and pave the way for further consolidation within the Greek financial sector. This is part of a broader trend toward banking sector restructuring in Greece, driven by the need to improve asset quality and increase capital adequacy.
- What is the net impact of Attica Bank's merger with Pancretian Bank and its participation in the "Hercules" program on its financial performance and NPE ratio?
- Attica Bank reported €27.3 million in operating profit for the first nine months of 2024, following its merger with Pancretian Bank. However, the final result shows a loss of €343.3 million due to provisions for the Domus portfolio under the "Hercules" program and merger-related expenses. The bank aims to reduce its NPE ratio below 3% by year-end after completing the sale of non-performing loans.
- What are the key challenges and opportunities facing Attica Bank in achieving its strategic objectives of operational efficiency, cost savings, and further improvement in asset quality in 2025?
- Attica Bank's success in achieving its targeted NPE ratio below 3% by year-end hinges on the successful completion of its non-performing loan sales and the full utilization of the "Hercules III" guarantee program. The bank's operational merger in 2025 and integration of systems will be crucial to achieving projected cost savings and synergies. Attaining these goals will require significant organizational restructuring and effective integration of two distinct banking cultures.
Cognitive Concepts
Framing Bias
The framing is largely neutral. While the positive operational profit is highlighted, the article also clearly presents the significant losses resulting from provisions and restructuring costs. The headline accurately reflects the overall financial results, including both positive and negative aspects. The article is factual and avoids subjective interpretations.
Sustainable Development Goals
The article highlights Attica Bank's successful capital increase, leading to full capitalization and privatization. This strengthens the bank's financial stability and contributes to economic growth by enabling it to support businesses and individuals. The bank also reports significant lending to SMEs, further boosting economic activity.