Trading update for the financial results for the nine-month period ended 30 September 2018 – Request for share trading suspension
29 October 2018
Hellenic Bank Public Company Limited (the “Company”) announces that it expects that its profit after tax for the nine-month period ended 30 September 2018 (“9M2018”) will be significantly higher than previous expectations and previous corresponding periods.
The Company’s 9M2018 financial results will include the results of the activities relating to the assets and liabilities acquired from the Cooperative Asset Management Company Ltd, previously known as the Cyprus Cooperative Bank Ltd, in September 2018 (the “Acquisition”) for the one-month period of September 2018 and also the expected negative goodwill arising from the Acquisition.
Further to the completion of the Acquisition, the Company is currently undertaking a purchase price allocation exercise based on the fair value of the acquired assets and liabilities as at the date of completion (1st September 2018). Preliminary results of this exercise are indicating that the negative goodwill to be recognized will be at a range significantly higher than previous estimates.
The Company stresses that the exercise is subject to an audit by the Company’s auditors and there are no assurances at this stage that the auditors will agree with the methodology used and/or the outcome of the exercise. It is noted that the exercise and its audit involve the use of internal models and judgments. Therefore, the results reached by each of the Bank and its auditors could be substantially different.
In addition to the final value of the negative goodwill, the profit after tax for 9M2018 is subject to the tax treatment of the negative goodwill and any potential restructuring provisions related to the Acquisition, with both items being subject to final review and approval. Finally, the regulatory capital treatment of the negative goodwill and, hence, its likely positive impact on the Company’s regulatory capital position is subject to review and approval by the relevant regulatory authorities.
Taking into account the above, and in order to protect the investing public from any possible misinformation and uncertainty regarding the Company’s financial results for 9M2018, the Company has requested the suspension of the trading of its shares on the Cyprus Stock Exchange until the Company’s 9M2018 financial results are published and their impact on the Company’s regulatory capital position is finalized.
HELLENIC BANK PUBLIC COMPANY LIMITED