BOCY posts Q1 profit

Financial Mirror (Cyprus) - - FRONT PAGE -

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.

Newspapers in English

Newspapers from Cyprus

© PressReader. All rights reserved.