Local
articles | 31 March 2015

Co-op in profit despite bad loans

Coop banks recently announced a €41.2 million net profit for 2014 despite the rise in provisions for bad debts with total provisions reaching €2.97 billion.

Loans which have not been serviced for over 90 days reached €6.7 billion or 51.1% of the of the loan portfolio.

Net income rose to €392.3 million compared with €377.8 million in 2013, the Cooperative Central Bank (CCB) said.

Net interest rate revenue was €378.4 million compared with €411.7 million in the previous year.

Operational profit rose 10.2% to €192 million against €174.3 million the year before.

Deposits dropped to €12.4 billion compared with €13.5 billion in 2013, the CCB said.

Some €500 million flowed into co-ops following their success in the European bank stress tests in October.

As part of the island’s €10 billion international bailout, co-ops received €1.5 billion in taxpayers’ money to recapitalise.

The sector has been reduced in size through mergers, which saw the island’s 93 co-operatives merged into 18. The mergers were completed in 2014.

CCB chairman Nicholas Hadjiyiannis said 2014 was an important year for co-ops, which ended “with significant profitability supported by a robust balance sheet with adequate provisions, strong capital basis, and ample liquidity”.

The CCB recently announced cuts in its lending rates across the board.

Source: Cyprus Mail

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