BOCY posts Q1 profit
Bank of Cyprus posted first quarter after tax profits of EUR 43 mln, a significant turnaround from 1 mln in the previous quarter and 2 mln in the same quarter last year, with the bank’s CEO saying the lender is on a steady path of reducing its NPEs.
The bank’s financial report released this week, shows that BoC has reduced its stock of Non-Performing Exposures for a twelfth consecutive quarter, this time by EUR 454 mln to drop to EUR 8.3 bln.
The overall stock of NPEs has been reduced by 44% since December 2014, while provisions against non-performing exposures increased to 51% (post IFRS 9 First Time Adoption), well-above the EU average of 44%. The NPE ratio stood at 45%.
Bank CEO John Patrick Hourican said BoC’s capital levels remain adequate. In the first three months, both the Bank’s CET1 ratio (transitional) and the Total Capital Ratio decreased in line with expectations to reflect the ‘phasing-in’ of deferred tax asset charges and the early adoption of changes to risk-weighted asset calculations to align the Bank with the CRR default definition.
“The Bank’s capital remained in excess of regulatory requirements and we remain on target to exceed 13% on a CET1 basis by the end of the year, based on organic balance sheet repair,” said Hourican.
BOC’s customer deposit share in Cyprus reached 34.1% as of 31 March 2018 (compared to 33.3% at 31 January 2018).
Customer deposits accounted for 77% of total assets as of 31 March 2018.
The Loan to Deposit ratio stood at 80% as of 31 March 2018, down from 82% at 31 December 2017, compared to a high of 151% at 31 March 2014.
Hourican said the results show that the bank is continuing to deliver against its core objective of balance sheet repair.
“We are pleased with the good momentum we are seeing in the business and, as our guidance continues to exclude the impact of any accelerated asset disposals, our expectations for the full year are unchanged,” he said.
Hourican also added that the Bank could make further progress in reducing its NPE stock, organically reducing it by EUR 2 bln.