13 April 2020
In light of the unprecedented crisis and uncertainty created by the impact from the Coronavirus (COVID-19), Hellenic Bank Public Company Ltd (the “Bank”) hereby provides an update on the potential financial impact on its business and operations:
- In relation to the measures announced by the Government of the Republic of Cyprus on 15th March 2020, the Bank is taking all necessary measures, in line with the directives of the Ministry of Health and the Ministry of Labour, in order to maintain the servicing of its customers and to simultaneously safeguard their health as well as that of its employees.
- As of 16th March 2020, the Bank is servicing customers through a reduced number of branches on the island for the protection of its customers and employees. In line with the directives of the Ministry of Health to limit public movement, the Bank advises customers to visit branches only when necessary and to use the Bank’s alternative delivery channels (Mobile App, Web Banking, ATMs and contactless cards) for their banking transactions.
- The Bank expects its financial performance for the Financial Year 2020 to be affected by the COVID-19 driven economic crisis. Accordingly, travel and economic activity restrictions imposed both domestically and internationally, to contain the spreading of the Coronavirus, are expected to have a negative impact on the Cyprus economy. This could affect the Bank’s financial performance for the current financial year through likely lower revenues depending on any economic activity deceleration and possible higher impairment charges, as borrowers may have difficulties in servicing their obligations. Given the high degree of uncertainty in relation to the longevity and severity of the economic crisis, the overall impact on the Bank’s financial performance remains unclear at this stage.
- The Bank welcomes and acknowledges the government and regulatory support measures announced to mitigate the economic impact of the COVID-19 pandemic.
The Bank will continue to monitor the situation, taking all necessary measures to mitigate the impact on its operations and financial performance. Furthermore, once there is more clarity of the impact on its financial performance, the Bank will proceed with further updates.
In conclusion, the Bank is taking, and will continue to take, all necessary measures to support its customers during this difficult period, while protecting the interests of its depositors, shareholders and staff.
HELLENIC BANK PUBLIC COMPANY LIMITED