In 2013 it recorded a loss of €1.69 million.

The Bank’s return to profitability is mainly due to a containment in provisions for impairment losses on loans and other advances, according to the audited financial results on a consolidated basis approved by the Committee of the Bank on April 28.

The audited financial results do not present any significant changes from the non-audited results published on March 30.

Non performing loans (NPLs) as they stood on December 31, 2014 were €7.31 million (2013: €6.13 million and corresponded to 55.8% of the total loan and other advances to customers portfolio (2013: 46%).

The comparative amounts of 2013 were calculated using the definitions of the previous Central Bank directive.

The total net income for the Cooperative Central Bank for 2014 came to €392,636 (2013: €398,951).

Profit derived from the Bank’s ordinary operations before provisions for impairment, was down by 1.6% to €192,355 in 2014 compared to €195,428 in 2013.

Deposits and other customer accounts came to €12,392,608 on December 31, 2014, recording an annual drop of €1,084,541 or 8%. Loans and other advancements to customers, after the provisions, came on December 31 to €10,126,728, recording an annual drop of €651,412 or 6%.

The Group’s equity came to €1,221,534after its successful recapitalisation with €1.5 billion from Cyprus’ international bail-out. The equity ratio came to 13.56%.

The Group’s Committee assures its members that despite the finance sector’s difficult conditions and the continued economic recession it will continue its effort for the Bank’s and the cooperative credit institutions’ normal functioning.

It further notes that the Bank has placed particular emphasis on faithfully following a restructuring plan aiming to maintain and enhance its capital ratios, safeguard sound liquidity and efficiently manage credit risk.

The most important risks which the Cooperative sector are exposed to are a credit risk, a market risk, a liquidity risk and an asset management risk.

The Group points out that it has put into place a risk management framework. At the core of this framework is a reliable evaluation of financial risks, it adds.

Source: InCyprus