BOCY profits slightly up in Q2 at € 50m
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.