Hellenic Bank: the best is yet to come (stays BUY)
We have increased our price target (PT) for Hellenic Bank to EUR 1.80/share (from EUR 1.0/share) to account for the higher ECB rates. The bank has a loan to deposit ratio of c.40%, a EUR 7.2bn cash balance with the ECB (37% of total assets) and EUR 4.7bn of debt securities. We believe that the boost in the NII from the rate bonanza will not be eaten away by a higher cost of risk, and we expect the ROTE to spike to >12% in 2023E, from c.8% in 2022E. The stock is up 11% ytd, but remains extremely cheap on a P/TBV of 0.32x and a P/E of 2.7x, on our 2023E. We remain BUYers of the stock.
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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