Attica Bank reported a loss of €105.0m in FY21 (FY20: €306.4m), which included a €55.4m write-down from loan securitisation in Q421. Loan impairments remain high and were 1.6% of loans in FY21, while the cost income ratio was 147% (FY20: 100%). More positively, income trends were good (Q421 total revenue and interest income rose 104% and 53% q-o-q respectively). The various capital actions taken by management (including share issues and securitisations) have improved the balance sheet, which had...
There were some encouraging signs in Attica’s Q221 results, with good momentum in core (interest and fees) revenue while impairments have now been at relatively low levels for two quarters after the balance sheet clean-up in recent years. The reported €4.4m loss reflects the fact that Attica needs to gain scale before it can be profitable. This requires more equity: Attica’s statutory CET1 is now only 3.1% (3.7% in Q121). Attica is pushing forward with its capital strategy. The deferred tax asse...
There were some encouraging signs in Attica’s Q221 results, with good momentum in core (interest and fees) revenue while impairments have now been at relatively low levels for two quarters after the balance sheet clean-up in recent years. The reported €4.4m loss reflects the fact that Attica needs to gain scale before it can be profitable. This requires more equity: Attica’s statutory CET1 is now only 3.1% (3.7% in Q121). Attica is pushing forward with its capital strategy. The deferred tax asse...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
Attica Bank is now at an important point in its transformation phase. It is planning three securitisations over the next four to five months that will take its NPE from 44% to just 1% of loans and remove about €1bn in risk-weighted assets. Its capital plan then calls for raising about €300m in equity over the next two to three years and targets a CET1 of 10% by the end of 2023 from the current 3.7% statutory ratio and an estimated -1.0% fully loaded. Attica has a market cap of €79m and although ...
Attica’s Q419 results showed good progress, with revenue sharply up and costs lower than expected. Impairment charges were higher, but underlying PBT was still better than forecast. Uncertainty around the COVID-19 pandemic greatly complicates forecasting at this stage. Our new numbers have higher impairment assumptions, mostly in 2020 and 2021. However, Attica’s strategy of strong asset expansion and its focus on the energy, infrastructure and green economy remains firm. There is just a time...
After a substantial balance sheet clean-up, Attica Bank is now beginning to implement its plan to refocus the business and expand its loan book. The time taken to refine and approve the strategy has deferred a return to profitability. Q2 and Q319 were significantly weaker than expected and we now expect profits only in 2021. The plan is to double the loan book in three years, with more cost cutting, a rebranding and a targeted approach to small business lending and the professional personal mark...
What’s new: Tatton’s trading update for the six months to 30 September is accompanied by a bolt-on acquisition: Tatton has agreed to acquire Sinfonia Asset Management for up to £2.7m (£2.0m on completion; £0.7m on performance) from the Tenet Group. The trading update confirms that “The Group continues to trade in line with the Board’s full year expectationsâ€. Evidence of continued growth is: ï‚§ 14.8% rise in Group AuM to £7.0 billion (30/918: £5.7 billion: 22.8% rise YoY; 31/3/1...
After cleaning up the balance sheet and cutting costs, Attica Bank’s key aim now is to grow into its cost base with normalised impairments while refocusing on the SME sector. Attica will have to be mindful of capital (fully loaded end-2018 CET1 is 8.9%, statutory is 13.5%), but liquidity looks comfortable (loan/deposit 69% and no more ELA) and unlikely to slow it down. We have reduced forecasts due to weaker than expected 2018 results and now expect ROTE 2020 of 3.2% (4.2% before). Attica is t...
Through the Artemis and Metexelixis securitisations, Attica’s exposure to impaired loans has reduced significantly and now compares favourably with the larger Greek banks. Management forecasts common equity Tier 1 to increase from 12.2% to 13.2% at year end, representing significant headroom over regulatory requirements. Management will now move to the next stage of recovery, right-sizing the cost base and shifting the group’s focus to the small and medium-sized enterprise market. Q3 results...
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