Hellenic financial institution to purchase doing financial loans from RCB


Hellenic Financial institution introduced that it has entered into an arrangement to acquire a accomplishing personal loan portfolio (the “Transaction”) from RCB Bank Minimal, which was previously recognised as the Russian Commercial Lender (Cyprus).

In accordance to a assertion, the Transaction entails a accomplishing loan portfolio of gross e book value of all around €556 million, linked income collateral and other credit rating balances of somewhere around €89 million and letters of assurance of about €23 million. As aspect of the Transaction, up to 16 workforce from RCB Lender Constrained who handle this portfolio will be transferred to the Financial institution.

About 75% of the loans are Cypriot exposures, while the remaining 25% are serious estate loans in the European Union and the Cyprus. The major sectoral exposures are: 37% actual estate and construction, 29% motels, and 19% wholesale and retail trade. About 54% of the Cypriot exposures relates to current customers of the Financial institution.

The personal loan portfolio is well collateralised and contains of accomplishing organization loans to 103 borrowers. The debtors associated will be vetted for sanctions compliance and AML clearance, in line with the rigid checking executed by the Bank to regulate all related threats and comply with the applicable sanctions imposed on Russia and Belarus. The Financial institution will have the appropriate to refuse onboarding debtors that fall short to meet up with its expectations.

The mortgage portfolio comprises: Tranche A (relating to only Cypriot exposures) of about €292 million and Tranche B of about €264 million. The acquisition of Tranche A is anticipated to be finished by 24 March 2022, although the acquisition of Tranche B is envisioned to be accomplished by 31 May well 2022, subject to appropriate owing diligence, ultimate settlement and all applicable regulatory approvals.

Based on September 2021 figures, the Bank’s executing loan portfolio is predicted to boost by about 11%, while the professional-forma NPE ratio (excluding APS-NPEs) will be diminished to about 13.4% from 14.5%. The Bank’s threat weighted assets are expected to maximize by about €656 million, resulting in a professional-forma funds adequacy ratio of 2000%, in comparison to 22.3% as of September 2021. On completion of acquisition of Tranche A, the Bank’s professional-forma capital adequacy ratio is predicted to be around 21,%.

Oliver Gatzke, CEO of Hellenic Financial institution explained: In line with the Bank’s method of increasing its organization in Cyprus, the Transaction will increase the Bank’s shopper base in business enterprise lending, gives cross advertising chances, increases its operating profits by greater curiosity cash flow and produces opportunity for developing its non-fascination money.

RCB announcement

RCB Financial institution Ltd announces that it has entered into an agreement with Hellenic Bank General public Organization Ltd for the sale of a executing mortgage portfolio of up to c. €556 million, connected cash on the accounts of the corresponding borrowers and related off-equilibrium sheet obligations.

The mortgage portfolio remaining offered contains of two tranches – Tranche A of c. €292 million relating to Cypriot exposures and Tranche B of c. €264 million relating to Cypriot, other European and Cyprus exposures. The sale of Tranche A is expected to be finished on 24 March 2022, when the sale of Tranche B is envisioned to be concluded by 31 Could 2022, issue to all applicable regulatory approvals.

The mortgage portfolio is well collateralized and includes of mostly corporate financial loans. About 75% of the financial loans are Cypriot exposures, when the remaining c.25% are industrial serious estate loans in the European Union and the Cyprus. The portfolio consists of exposures to Cypriot and other European borrowers in the pursuing most important sectors: lodges and accommodation, business serious estate, design and advancement, wholesale and retail trade, manufacturing, foodstuff and beverage, renewable vitality and instruction.

The sale of the financial loan portfolio shall strengthen even more the capital and the liquidity buffers of RCB Financial institution Ltd and shall generate more sizeable buffers, hence letting for considerable absorption ability of any likely external shocks. The complete money adequacy ratio of RCB Bank Ltd shall improve from c. 21% to around 27%. The Bank’s liquidity shall exceed the overall sum of all liabilities, which enables RCB Bank Ltd each assembly its obligations in the direction of all of its clientele in entire as effectively as to preserve adequate concentrations of liquid belongings for its even more operations. RCB Bank is predicted to obtain a full quantity of in excess of 500 million Euros from the sale.

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Editor’s note

The day Russia invaded Ukraine, Russian condition-owned VTB Bank, which got slapped by the U.S. with sanctions the exact working day, transferred its stake in Cyprus’ RCB Lender to the two remaining shareholders, the two of which are firms registered in Cyprus.