RCB en­joys 19% rise in net prof­its

Financial Mirror (Cyprus) - - FRONT PAGE -

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.

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