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articles | 30 May 2017

BoC posts Q1 2017 profits with NPLs down

Bank of Cyprus, the island’s largest lender, said that it generated a €2m after tax profit in the first quarter of the year, as much as in the past quarter, compared to €50m in January to March 2016.

Total income dropped in January to March this year a quarterly 4% and an annual 5% to €233m while total expenses rose 9% and 7% to €107m respectively, the bank said in an emailed statement on Tuesday. The drop in revenue of the lender, which in January issued a €250m tier 2 capital bond at a 9.25% rate, was mainly on 3% quarterly decline in net interest income which fell to €156m.

The bank, which completely repaid its central bank emergency funding in January, saw its non-performing loans drop in the first quarter to €10.4bn which accounts for 51.8% of the total from €11bn in December or 54.8% respectively, Bank of Cyprus said. Loans in arrears for more than 90 days fell to €8bn from €8.3m or to 40% from 41.3%.

The bank booked a total of €118m in total provisions and impairments in the first quarter compared to €134m in the past quarter and €68m in the respective quarter of 2016, it said.

The cost to income ratio rose in January to March to 46% from 40% in October to December and 41% in the respective period last year, Bank of Cyprus said. The net interest margin shrank to 3.33%, compared to 3.37% in the fourth quarter of 2016 and 3.63% in the respective period last year.

Both net loans and customer deposits rosemarginally to €15.7m and €16.3m at the end of March compared to December, the bank said. The transitional common equity tier 1 (CET1) ratio dropped marginally to 14.4% in the first quarter compared to the one before while the fully loaded CET1 ratio rose marginally to 14%. Total equity stood at €3.1bn at the end of March.

Source: Cyprus Mail

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