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