Co-op Q1 prof­its at € 28 mln, NPLs be­low 50%

Financial Mirror (Cyprus) - - FRONT PAGE -

The Co­op­er­a­tive Cen­tral Bank, the state-owned bank­ing group bailed out with EUR 1.5 bln last year, an­nounced prof­its of EUR 28 mln for the first quar­ter end­ing March 31, mainly due to op­er­a­tional earn­ings that in Q1 amounted to EUR 42 mln.

Com­pared with the first quar­ter of 2015, net prof­its recorded a de­cline of 24.5% or EUR 9.1 mln due to the re­duc­tion in in­ter­est in­come as lend­ing rates de­clined.

The bank’s cap­i­tal ad­e­quacy ra­tio (CET1) rose marginally from 15.6% in the fourth quar­ter of 2015 to 15.7%.

“Main­tain­ing and im­prov­ing the CET1 ra­tio shows the Co-oper­a­tive sec­tor’s abil­ity to produce value and a ro­bust or­gan­i­sa­tion ready to face chal­lenges stem­ming from the need to tackle the prob­lem of non per­form­ing ex­po­sures and the pro­vi­sion of healthy fi­nanc­ing to the real econ­omy,” the Co-oper­a­tive Cen­tral Bank said in a press re­lease.

The Co-ops’ cov­er­age ra­tio re­mained broadly un­changed at 53% in Q1 2016 from 53.4% in Q5 2015.

Non per­form­ing loans de­clined be­low 50% of to­tal loans for the first time since the fi­nan­cial cri­sis back in 2013, the CCB said.

Re­struc­tur­ing in Q1 2016 to­talled EUR 323 mln, while the cure ra­tio stands at 76%, the CCB added, not­ing that in the com­ing months loans amount­ing to 7.7% of the to­tal loan port­fo­lio will be re­moved from the NPL list.

De­posits in Q1 2016 amounted to EUR 12.54 bln with gross loans amount­ing to EUR 12.53 bln, with to­tal pro­vi­sions amount­ing to EUR 3.31 bln.

“The Co-ops’ strong bal­ance sheet is a re­sult of the great progress recorded on all lev­els and con­sti­tutes the ba­sis for the con­tin­u­a­tion and the in­crease of its lead­ing po­si­tion in the bank­ing sec­tor of Cyprus with the sole aim for progress of the so­ci­ety and the econ­omy,” the CCB said.

It added that the com­fort­able liq­uid­ity with no exposure to the ECB emer­gency liq­uid­ity or other ECB mon­e­tary op­er­a­tions cre­ate the con­di­tions for the sup­port of the Cypriot eco­nomic ac­tiv­ity in the great ef­fort to re­store the econ­omy to sus­tain­able growth rates.”

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