Compared with the Q1 of 2015, net profits recorded a decline of 24.5% or €9.1 million due to the reduction in interest income as lending rates declined.

The bank’s capital adequacy ratio (CET1) rose marginally from 15.6% in the fourth quarter of 2015 to 15.7%.

“Maintaining and improving the CET1 ratio shows the Cooperative Sector’s ability to produce value and a robust organisation ready to face challenges stemming from the need to tackle the problem of non performing exposures and the provisionof healthy financing to the real economy,” the Cooperative Central Bank said in a press release.

The Co-ops’ coverage ratio remained broadly unchanged to 53% in Q1 2016 from 53.4% in Q5 2015.

Non-performing loans declined below 50% of total loans for the first time since the financial crisis back in 2013, the CCB said.

Restructuring in Q1 2016 reached €323 million while the cure ratio stands at 76%, the CCB added, noting that in the coming months, loans amounting to 7.7% of total loan portfolio will be removed from the NPL list.

Deposits in Q1 2016 amounted to €12.54 billion with gross loans amounting to €12.53 billion, with total provisions amounting to €3.31 billion.

“The Co-ops’ strong balance sheet is a result of the great progress recorded on all levels and constitutes the basis for the continuation and the increase of its leading position in the banking sector of Cyprus with the sole aim for progress of the society and the economy,” the CCB said adding the comfortable liquidity with no exposure to the ECB emergency liquidity or other ECB monetary operations create the conditions for the support of the Cypriot economic activity in the great effort to restore the economy to sustainable growth rates.”

Source: Famagusta Gazette