articles | 09 March 2017 | ServPRO Accountants & Consultants

€64 million profit for the Bank of Cyprus

On 1 March 2017, the Bank of Cyprus announced the Preliminary Group Financial Results for the year ended 31 December 2016, recording a profit after tax of €64 million for 2016 marking the Bank’s first profitable year after the 2013 economic crisis.

The Bank’s announcement highlighted the key milestones achieved by the Bank in 2016 and notably the full repayment of the ELA, the successful issuance of the €250 mil Tier 2 Notes and the listing of the shares on the London Stock Exchange.

Moreover, the Bank noted:

  • 7 consecutive quarters of problem loan improvement
  • 90+ DPD down by €459 mn or 5% qoq; down by €3,0 bn or 27% in FY2016
  • NPEs down by €867 mn or 7% qoq; down by €2,9 bn or 21% in FY2016
  • Full repayment of €11,4 bn ELA; repayment of €3,8 bn ELA during 2016 and early 2017
  • Deposits up by €867 mn or 6% qoq; up by €2,3 bn or 16% in FY2016
  • Improved L/D ratio to 95%
  • Total Capital ratio c.16% (pro forma). CET1 ratio at 14,7%; 70 bps added during FY2016
  • Strong pre provision operating profitability directed to de-risk balance sheet at €148 mn for 4Q2016 and €566 mn for FY2016

In a statement, the Bank`s CEO, Mr. John Patrick Hourican said:

“Our results this quarter were satisfactory and reflect our strategy of continued de-risking. We are pleased to have delivered a modest profit in 2016 and to have started 2017 with the full repayment of ELA, a successful return to the debt capital markets and the successful listing of our shares on the London Stock Exchange.”

Furthermore, he underlined that the strong growth of deposits experienced by the Bank in the fourth quarter helped towards the full repayment of ELA by the Bank. Specifically the said:

“Deposit growth in the fourth quarter was extremely strong. Deposits in the fourth quarter grew by €867 mn and, at the end of December our loan to deposit ratio stands at a healthy 95%, well inside the European averages. This strong growth helped contribute to our ability to fully repay ELA so rapidly.”

Cooperation Partners
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