Eurobank Cyprus stays on course with profits

Eurobank Cyprus remained on a course of profitability in 2020, despite a 10% drop in after-tax earnings to EUR 40.1 mln from the previous year, due mainly to the impact of the Covid-19 pandemic.

Announcing its financial results for the past year, the wholly owned subsidiary of Athex-listed Eurobank Group said after-tax profits were EUR 40.1 mln from EUR 44.5 mln in 2019, with pre-tax earnings at EUR 52.4 mln in 2020 from EUR 59.0 mln in 2019. The bank said in an announcement that it maintained a strong capital position with its Capital Adequacy Ratio and CET1 ratio at 26.2%.

This is based on a strong surplus liquidity with deposits of EUR 5.48 bln (2019: EUR 5.55 bln) with the loans-todeposits ratio of 33%, excluding depositsecured lending.

Capital and other reserves increased from EUR 494 mln in 2019 to EUR 527 mln last year.

The bank also said that it maintains a healthy loan book, rising from EUR 2.097 bln in 2019 to EUR 2.20 bln in 2020, with the EBA-defined non-performing loans at a ‘remarkably low’ 3.2%.

The Cyprus bank also seems to enjoy a lean operation with cost-to-revenues ratio at 37%.

“From the outset of the crisis we implemented a plan of business continuity with the aim of serving and supporting our customers,” said Eurobank.

The bank said it is on a path of technological upgrade transforming itself into a customer-centric corporation providing innovative digital products and services, a process that will continue this year.

The financial results of the Cyprus bank appear in line or significantly better than the parent Holdings company, whose consolidated balance sheet saw an aftertax loss of EUR 1.21 bln last year, compared to a profit of EUR 127 mln in 2019, due mainly to a write-down of assets and the sale of portfolios, mainly outside Greece.