Hellenic Bank: All you need is capital (stays BUY)
We reiterate our BUY rating on Hellenic Bank, following the publication of its 1Q20 numbers and the incorporation of the COVID-19 impact in our model. We have lowered our net profit forecasts by 51% for 2020E, 28% for 2021E and 11% for 2020E, due mainly to weaker NII, lower fees and a higher cost of risk (COR). Despite the lower numbers, we believe the bank can maintain decent profitability during a challenging period and reach a ROTE of 6-7% by 2022E. Hellenic Bank trades at a P/TBV of just 0.25x, despite best-in-class capital ratios, with a TCR of 21.7% and excess capital of 730bps on RWA or EUR 380m.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
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