Eurobank proposes new Hellenic Bank board structure ahead of general assembly

Eurobank has announced the new board members it will propose for Hellenic Bank ahead of the general assembly scheduled for September 18.

According to the proposal, Petros Christodoulou is set to continue in his role as chairman. Michalis Louis, the current chief executive officer of Eurobank Cyprus, has been put forth as an executive board member.

In addition, Antonis Rouvas, the current interim chief executive officer of Hellenic Bank, has also been proposed as an executive board member.

The new board of Hellenic Bank is expected to include independent non-executive board members Stephen John Albutt and Maria Xatha.

The proposed independent non-executive members for the new board are Oliver Bernard Elligan, Robert Anastasis Kyprianou, Charalambos Konstantinou, Maria Charalambous, Sofronis Clerides, and Kenneth Howard Smith.

Following the completion of its mandatory public offer to Hellenic Bank shareholders, Eurobank now holds 56 per cent of the bank’s total share capital, making it the largest shareholder in the group.

As previously reported this month, Eurobank does not plan to implement major changes to the senior management structure.

According to reports, the management of Hellenic Bank will be strengthened by a small executive team from Eurobank Cyprus, rather than from its parent company in Athens.

What is more, the selection of the new chief executive officer of Hellenic Bank will be made by the new board elected at the extraordinary general assembly.

It should be noted that Michalis Louis has held the position of CEO at Eurobank Cyprus since its inception.

During the banking crisis, Eurobank had the lowest percentage of non-performing loans, around 6 pe rcent, and has maintained steady profitability in recent years.

According to the bank’s latest financial results, Eurobank Cyprus generated a net profit after tax of €105.7 million in the first half of 2024.

The bank’s financial results for the period show solid capital adequacy and liquidity, an improved cost-to-income ratio, and increased profitability.

The bank’s net profit marked a €14.9 million rise over the same period in 2023, corresponding to a 16 per cent year-on-year increase.

Furthermore, the bank’s loans-to-deposits ratio, excluding loans secured by deposits, rose to 32.8 per cent, with total deposits reaching €7.47 billion, an increase of €371 million since the beginning of the year.

Meanwhile, Hellenic Bank reported an after-tax profit of €93.3 million for the first quarter of 2024, with interim CEO Antonis Rouvas saying that the year “started on a strong footing” for the bank.

“This performance demonstrates the resilience and robustness of our business model, despite the continuing challenges and uncertainty rising from the geopolitical and economic environment,” Rouvas added at the time.