While there are signs of recovery, several financial indicators raise serious doubts about the bank’s long-term stability. Revenue has improved, but profitability has been severely impacted by a sharp increase in impairment provisions for non-performing exposures (NPEs), which have surged to €398.2 million. Meanwhile, the bank’s Common Equity Tier 1 (CET1) capital adequacy ratio has fallen from 12.8% in 2023 to 11.9%, reducing its ability to absorb future losses and making it harder to finance investments for growth.
At the same time, operating expenses have risen by 38%, reaching €115.2 million, with personnel costs alone skyrocketing by 57%. The recent merger with Pancreta Bank has contributed to these cost increases, along with network restructuring and a voluntary redundancy program. However, despite these efforts, Attica Bank has yet to reach a stable financial position. Additional restructuring costs of approximately €85 million are expected to weigh on the bank’s results in the short term, with the full operational integration of the Pancreta Bank merger scheduled for completion by December 2025. The anticipated cost synergies from the merger, estimated at €30 million over the next two years, offer some relief, but execution risks remain high. Further staff reductions through another voluntary exit program are also on the horizon, adding to the financial burden.
Despite these challenges, Attica Bank is trading at a premium relative to its book value, with a price-to-book (P/B) ratio of 1.33x. This valuation places significant pressure on Vrettou, as it suggests that investor expectations for the bank’s turnaround are already high. Whether this transformation will be a remarkable success or an endless uphill battle remains to be seen.
