This means that the ratio of loans in arrears for more than 90 days to grossloans declined to 47% on 31 March 2016 from 50% on 31 December 2015.
In an announcement, the bank says: “The strong momentum in the Bank’s loan restructuring activities continues with progress across all asset quality metrics.”
The bank went on to add that it expects a further reduction in loans in arrears for more than 90 days in the coming quarters, “…reflecting the restructuring momentum and the improving economic and operating conditions in Cyprus.”
In addition, the bank said that profit after tax for the first quarter is expected to be around €50 million.
The Bank’s Common Equity Tier 1 capital (CET1) ratio (transitional basis) is expected to increase to about 14.3%, up from 14.0% at 31 December 2015, reflecting the profitability of the first quarter of 2016 and the on-going reduction in risk weighted assets.
The bank says that its liquidity position continues to improve. Although deposits in Cyprus remained unchanged during the first quarter of 2016, reflecting seasonality factors and the impact from the change in the foreign exchange rate of Euro against US Dollar, deposit inflows have picked up during April 2016.
The improving liquidity position has allowed the Bank to repay €600 million of ELA post 31 December 2015, reducing it to its current level of €3.2 billion.