Attica Bank S A : FY 2020 GROUP FINANCIAL RESULTS

FY 2020 GROUP FINANCIAL RESULTS

• Net Interest Income increased by 16% yoy
• Reduction of general operating expenses by 6.4% yoy
• Increase of deposits by 7.4% yoy
• New financing and refinancing doubled, amounting to €322 mln vs the comparative period
• 7.4% of the performing loan portfolio (before provisions) relate to covid-19 exposures
• NPE ratio less than 1% on a pro forma basis. Without taking into account the securitizations Astir 1&2 and Omega, NPE ratio stands at 41.7% and NPE Cash Coverage Ratio at 42.5%
• Total Capital Adequacy Ratio stood at 8.2%. Upon the conclusion of the securitization Omega and the inclusion of the senior note into “HAPS II”, the capital adequacy ratio is estimated to increase by at least two percentage points on a pro-forma level, without taking into account the capital enhancement actions of the Bank’s Business Plan 2021- 2023.

Management Statement

2021 will bring the gradual end of the coronavirus pandemic and the return to normal. The acceleration of mass vaccination is our tool against the pandemic that will allow us to relaunch the economy and return to a new reality. It is estimated that funds from the European recovery instrument Next Generation EU, in conjunction with ensuring favorable financial conditions, will confirm expectations for recovery in the European Union (EU) and Greece from the second semester of 2021 onwards.

At the same time, the coronavirus pandemic accelerates the formation of a new economic and social environment, based on the need to tackle climate change and on the expansion of digital activities. In this context, Attica Bank has already set its digital transformation at the core of its new business plan, taking advantage of the business opportunities created by modern banking products financing the environmental strategy of its customers, as well as the completion of its digital and business transformation and its repositioning in the market both on a digital level and via its branches’ network whose operational model will be modified in order to meet market’s needs.

The publication of the Annual Financial Report for 2020 marks the full and definitive cleanup of Attica Bank’s balance sheet. The Bank, free from the burdens of the past -i.e. large number of NPLs, exposure to ELA over €1 billion, -is successfully completing the complex effort it began in September 2016. At the same time, it is shifting and focusing its efforts on getting back to a path of growth by implementing its new three-year business plan. Implementing this strategy, Attica Bank adopted the principles of sustainable banking and aims to double the Bank’s loan portfolio through funding of corporate entities in the fields of Environment, Energy and Infrastructure as well as small-medium enterprises, self-employed and scientists.

In particular, on 27.04.2021, the Board of Directors decided the “Omega” securitization which includes the loans/credits of the current securitization, known as “Artemis Project”, as well as almost the total of the Bank’s NPLs on 31.12.2020. With “Omega” transaction, Attica Bank’s consecutive securitizations amounting to €3 bln that started in December 2016 will be completed. After the successful completion of “Omega” and Astir 1 and 2 transactions, Attica Bank’s NPL ratio will stand at a pro forma level less than 1%, which is below the european average.

Furthermore, the new financing and refinancing for the FY 2020 stand at c. € 322mln and net loans to deposits ratio at 57%. Moreover, Attica Bank continued to improve its liquidity position compared to FY 2019…