Attica Bank

ASE: TATT

€194.7m market cap

€0.42 last close

Attica is the fifth-largest bank in Greece, with assets of €3.45bn and 55 branches centred around Athens. It has a 2% market share of business banking and around 2% market share of most retail banking products.

Investment summary

After cleaning up the balance sheet and cutting costs, Attica Bank’s key aim now is to grow into its cost base with normalised impairments while refocusing on the SME sector. Attica will have to be mindful of capital (fully loaded end-2018 CET1 is 8.9%, statutory is 13.5%), but liquidity looks comfortable (loan/deposit 69% and no more ELA) and unlikely to slow it down. We have reduced forecasts due to weaker than expected 2018 results and now expect ROTE 2020 of 3.2% (4.2% before). Attica is trading on a 2018 P/NTA of 0.2x, and our valuation remains at 0.28x (€0.27/share).

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (c)
P/E (x)
P/CF (x)
2017A 166.6 N/A 1.1 (0.51) N/A N/A
2018A 128.0 N/A 4.7 (0.51) N/A N/A
2019E 92.7 N/A 5.2 (0.44) N/A N/A
2020E 104.2 N/A 21.5 3.14 13.4 N/A
Last updated on 25/07/2019
Industry outlook

Attica intends to focus on its SME business banking activity to exploit attractive margins and an existing 2% 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 forecast Attica to achieve a 3.2% return on tangible equity in 2020 and 4.7% in 2021.

Last updated on 25/07/2019
Share price graph
Balance sheet
Forecast net cash (€m) 0
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (16.4) 86.7 70.5
Relative* (20.2) 62.9 44.9
52-week high/low €0.6/€0.1
*% relative to local index
Key management
Athanasios Tsadaris CEO
Koutsogiannis Nikos CFO