Coop Bank Q1 prof­its at € 37 mln

Financial Mirror (Cyprus) - - FRONT PAGE -

The Co­op­er­a­tive Cen­tral Bank re­ported net prof­its of EUR 37.1 mln in the first quar­ter of the year, down from EUR 41.2 mln in the fourth quar­ter of 2014, mainly due to a drop in in­ter­est in­come as well as an in­crease in pro­vi­sions by EUR 22 mln to EUR 3.04 bln.

“This prof­itabil­ity was achieved within a quar­ter that was marked by a coura­geous re­duc­tion of in­ter­est rates. Our aim is to con­tinue to con­verge Cyprus rates with the Euro­pean av­er­age in or­der to help the econ­omy re­gain its com­pet­i­tive­ness,” said board Chair­man Ni­co­las Had­jiyian­nis.

“The Co­op­er­a­tive Bank that we are plan­ning ahead will be even stronger and in­no­va­tive so as to serve our thou­sands of mem­bers and cus­tomers,” he added.

How­ever, de­spite low­er­ing in­ter­est rates in or­der to help its co­op­er­a­tive clients, op­er­a­tional costs were re­duced in the first quar­ter, while the bank has main­tained its level of non-per­form­ing loans at 44.1% of its loan­book, far be­low the na­tional level of above 50%.

The bank’s bal­ance sheet in­creased by about EUR 260 mln from the pre­vi­ous quar­ter to EUR 14.2 bln that in­cludes EUR 1.29 bln in own funds, with the Core Tier 1 cap­i­tal ad­e­quacy ra­tion drop­ping marginally from 13.6% to 13.3%. The gov­ern­ment bailed out the bank with a EUR 1.5 bln cap­i­tal in­jec­tion last year and it is now na­tion­alised, hav­ing merged all lo­cal Co­op­er­a­tive Credit So­ci­eties un­der one roof, but the group is not state­con­trolled and aims to con­sol­i­date the Co­op­er­a­tive sec­tor fur­ther by sell­ing off non-core as­sets and re­duc­ing its op­er­a­tional ex­penses.

With net in­ter­est in­come (NII) drop­ping to a quar­ter, from EUR 378.9 mln to EUR 89.5 mln, op­er­at­ing prof­its reached EUR 59.9 mln due to a con­tin­ued re­duc­tion of costs that helped cut the cost-to-in­come ra­tio marginally to 37.2%.

The bank cur­rently em­ploys 2,670 peo­ple, 33 less than the pre­vi­ous quar­ter, and aims to re­duce this num­ber fur­ther to 2,580 by the end of 2017.

To­tal loans and other fa­cil­i­ties reached EUR 10.03 bln, down 100 mln from the pre­vi­ous quar­ter, due to a fall in de­mand and con­tinue delever­ag­ing by re­tail and cor­po­rate cus­tomers.

NPLs in­creased by EUR 200 mln to EUR 6.9 bln, while de­posits also rose by EUR 242 mln to EUR 12.6 bln.

Newspapers in English

Newspapers from Cyprus

© PressReader. All rights reserved.