Attica Bank

ASE: TATT

€54.4m market cap

€0.11 last close

Attica is the fifth-largest bank in Greece, with assets of €3.45bn and 55 branches centred around Athens. It has a 3% market share of business banking and around 1% market share of most retail banking products.

Investment summary

Attica has de-risked its portfolio through innovative securitisations. Over the past two years net impaired loans have declined from 250% to parity with net tangible assets. Incorporating the gain on the Metexelixis transaction will leave common equity tier 1 at 13.2% at year end, representing significant headroom over regulatory requirements. Management will now move on to the next stage of recovery, shifting the group’s focus to the small and medium-sized enterprise (SME) market and raising profitability to acceptable levels.

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (c)
P/E (x)
P/CF (x)
2016A 104.2 N/A (42.3) (2.59) N/A N/A
2017A 166.6 N/A 1.1 (0.51) N/A N/A
2018E 133.5 N/A 3.1 0.24 50.0 N/A
2019E 96.9 N/A 4.0 0.38 31.6 N/A
Last updated on 20/02/2019
Industry outlook

Attica intends to focus on its business banking activity to exploit attractive margins and an existing 3% market share. Rebuilding profitability will be achieved through: voluntary retirement schemes; pricing leverage as the major Greek banks review their product offerings; and normalisation of impairments facilitated by reduced exposure to the collateral underpinning impaired loans, and an economy anticipated to grow 2% pa with declining unemployment. We expect that, by 2020, Attica will be close to achieving a 5% return on tangible equity.

Last updated on 20/02/2019
Share price graph
Balance sheet
Forecast net cash (€m) 0
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 10.9 (1.7) (68.2)
Relative* 1.4 (12.9) (60.6)
52-week high/low €0.4/€0.1
*% relative to local index
Key management
Athanasios Tsadaris CEO
Koutsogiannis Nikos CFO