Coops see € 15 mln in Q1 prof­its

Financial Mirror (Cyprus) - - FRONT PAGE -

The Co­op­er­a­tive Cen­tral Bank an­nounced net prof­its of EUR 15 mln for the first quar­ter of the year and prof­its of EUR 196 mln be­fore pro­vi­sions for im­pair­ment of loans and ad­vances for 2013, ac­cord­ing to pre­lim­i­nary re­sults.

This fol­lows a EUR 1.5 bln govern­ment bailout and sub­se­quent na­tion­al­i­sa­tion as part of the wider eco­nomic ad­just­ment pro­gramme im­posed by the Troika of in­ter­na­tional lenders to Cyprus.

As a re­sult, the is­land’s 193 Co­op­er­a­tive So­ci­eties have been merged into 18 re­gional Coop banks, wholly-owned by the Co­op­er­a­tive Cen­tral Bank.

CCB Com­mit­tee Pres­i­dent Ni­co­las Had­jiyian­nis spoke of a ‘his­toric mile­stone’ and vouched to con­tinue ef­forts to meet so­ci­ety’s ex­pec­ta­tions.

To­tal pro­vi­sions on De­cem­ber 31 for im­pair­ment of loans and ad­vances come to EUR 2.6 bln in­creas­ing the cov­er­age ra­tio of non­per­form­ing loans (NPLs) to 42%.

The new pro­vi­sions for 2013 come to EUR 1.9 bln in ac­cor­dance with the sec­tor’s re­struc­tur­ing plan which should have been taken into ac­count years ago since they are re­lated to fig­ures which have been present well in ad­vance of 2013.

To­tal cap­i­tal, hav­ing taken into con­sid­er­a­tion the re­cap­i­tal­i­sa­tion and hav­ing taken out pre­dic­tions for the im­pair­ment of the loan port­fo­lio, come to EUR 1.2 bln, with a Core Tier 1 cap­i­tal of 12.1%, a press re­lease said.

Ef­forts to re­duce ex­pen­di­ture are on­go­ing with a pro­jec­tion of net sav­ings of EUR 300 mln over the next five years.

At the same time, the Co­op­er­a­tive sec­tor has no de­pen­dence on ELA and has suf­fi­cient liq­uid­ity.

In a state­ment, Had­jiyian­nis spoke of “a his­toric mile­stone”, since for the first time in the his­tory of the co­op­er­a­tive move­ment con­sol­i­dated ac­counts abid­ing by the strict stan­dards of the ECB have been pre­pared.

He added that the in­ten­tion is “to shield our bal­ance sheet and at the same time deal with the past in an ef­fi­cient man­ner”, some­thing which ac­cord­ing to him is ‘clearly il­lus­trated’.

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