BOCY prof­its slightly up in Q2 at € 50m

Financial Mirror (Cyprus) - - FRONT PAGE -

Bank of Cyprus seems to have re­turned to a grad­ual path of re­cov­ery with a sec­ond suc­ces­sive quar­ter of prof­its, as to­tal after tax for H1 stood at EUR 81 mln.

Fol­low­ing seven con­sec­u­tive quarters of dev­as­tat­ing losses, a near-fa­tal bail-in of de­pos­i­tors, forced ab­sorp­tion of the now de­funct Laiki Popular Bank and the loss of all bank­ing op­er­a­tions in Greece, the is­land’s big­gest lender con­tin­ues with cost-cut­ting, down­siz­ing and as­set sales.

With Q1 after tax prof­its at EUR 31 mln, mainly on lo­cal op­er­a­tions and de­posits in the UK and Rus­sia down, a sim­i­lar pat­tern was painted for Q2, where lo­cal op­er­a­tions pro­vided the bulk of prof­its, prob­a­bly from ad­min­is­tra­tion costs and bank charges, for an ac­cu­mu­lated H1 profit of EUR 81 mln.

“We have made good progress in the im­ple­men­ta­tion of our re­struc­tur­ing dur­ing the sec­ond quar­ter, and we con­tinue to de­liver net loans to de­posits ra­tio to­talling 148%, com­pared to 151% at Q1 and 145% as at 31 De­cem­ber 2013.

The non-per­form­ing loans book de­clined by 1.3% dur­ing the sec­ond quar­ter, to­talling EUR 12.591 mln at June 30, com­pared to EUR 12.756 mln at March 31 and EUR 13.003 mln at De­cem­ber 31, 2013, rep­re­sent­ing 49.8% of gross loans for H1. On Tues­day, the bank an­nounced it will to pro­ceed with a re­tail of­fer of a fur­ther 100 mln euros worth of shares to ex­ist­ing share­hold­ers, at 24c, the same price of­fered in pri­vate place­ment to mega-in­vestors Wil­bur Ross (EUR 400 mln) and the Euro­pean Bank for Re­con­struc­tion and De­vel­op­ment (EUR 120 mln).

The re­tail of­fer in­creases the amount of fresh cap­i­tal raised to EUR 1.1 bln, with new share­hold­ers Ross and the EBRD ex­pected to have a ma­jor say in the bank’s soon-t0-be re­struc­tured board.

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