RCB enjoys 19% rise in net profits

RCB, one of four systemic Cyprus banks supervised by the ECB, posted after tax profits of EUR 97.18 mln in 2017, a 19% increase compared to EUR 81.66mln the year before, according to results published this week.

Pre-tax profits reached a EUR 113.6 mln in 2017 compared to pre-tax profits of EUR 97.18 mln in 2016.

“RCB Bank has profitable for the last said in a statement.

“The main driver behind the growth in profits was the increase of non-interest income from EUR 23.4 mln in 2016 to EUR 35.6 mln in 2017,” it added.

Other contributory factors were the expansion of domestic market operations in Cyprus combined with the improvement in overall operational efficiency.

“RCB continued its successful expansion in the local market as the key pillar of its strategy. Two new branches were successfully launched in Paphos and Larnaca during 2017.”

been consistently five years,” the bank

And the bank saw its local client base expand by 41% coupled by a significant growth in the volume of deposits and lending that it disbursed to local businesses.

Over the 12-month period customer deposits also improved 9.28% from 2.76 bln in 2016 to 3.02 bln as at 31 December 2017.

Growth in lending volumes was helped by RCB’s cooperation with the European Investment Bank (EIB) and the European Investment Fund (EIF) on financing new investments and innovations of small medium enterprises (SMEs).

Last week, RCB Bank and the EIB agreed a EUR 30 million financing initiative as part of a broader SME investment scheme so Cypriot companies can now benefit from longer term loans at favourable rates.

RCB also enjoys a high level of capital adequacy: The Common Equity Tier 1 ratio reached 20.1% and the Capital Adequacy Ratio was 21.2%.

“The operational efficiency together with the conservative and effective management of the credit risks allowed RCB to build up a solid capital base and the necessary reserves while remaining profitable,” the RCB statement said.

It said the bank has all the necessary financial reserves and capital to facilitate its further business development in Cyprus.

“In 2018, the Bank shall strengthen and extend its domestic business operations with Cypriot individual and corporate clients being the Bank’s key growth driver for the past three years.”

RCB said that due to changes in the external environment, the whole Cypriot banking system has faced new challenges related to the increased risks of cross-border international financial operations.

“To mitigate these risks the Bank has been consistently enhancing its anti-money laundering and compliance procedures as well as strengthening its client on-boarding and monitoring policies.”

Due to this process, RCB said it “might lead to a significant reduction in operations with international clients of the Bank”.

RCB Bank was established in 1995, and operates branches in Nicosia, Limassol, Larnaca, Paphos and Luxembourg and has representative offices in London and Moscow.

Increased profits announced by RCB follows on the heels of Bank of Cyprus and Hellenic which also posted better figures in their Q1 2018 results.

Bank of Cyprus posted first quarter after tax profits of EUR 43 mln, a significant turnaround from EUR 1 mln in the previous quarter and EUR 2 mln in the same quarter last year. BoC also reduced its stock of NonPerforming Exposures for a twelfth consecutive quarter, this time by EUR 454 mln to drop to EUR 8.3 bln

Hellenic Bank, one of the finalist bidders for the troubled Co-operative Bank, announced net profits of EUR 28.6 mln.

A welcome turnaround for a bank which posted loses of EUR 10.5 mln in Q1 of 2017.