articles | 01 September 2016

Cyprus' banks eliminate €1.9bn in NPLs in H1 2016

Cyprus’ major banks reduced their overall stock of NPLs in June 2016 by almost €1.9bn, or 7.8%, in the first six months of 2016 to €22.3bn, according to an analysis of bank data.

According to the data, Bank of Cyprus was most successful in reducing both its non-performing loans and its 90-days-past-due loans in the first half of the year.

By June 30, Bank of Cyprus’ non-performing loans dropped to below €12.5bn, or by almost €1.5bn compared with December 2015, an improvement of almost 11%, the data shows. Hellenic Bank, the island’s third largest lender, had the second-highest rate in reducing non-performing loans, which dropped by €115m or 4.4% in the first six months of the year to below €2.5bn.

The Cooperative Central Bank, which is currently drafting a prospectus to submit this November to the Cyprus Stock Exchange and the Cyprus Securities and Exchange Commission ahead of its listing scheduled for late 2018, was able to reduce its non-performing loans to €7.3bn in June by €295m or 3.9% in six months, the data shows.

Bank of Cyprus and the Cooperative Central Bank also reduced their 90-days-past-due loans by more than €2.6bn combined, according to the figures. Bank of Cyprus reduced its loan portfolio with 90 days in arrears by almost €2.1bn in June, compared with December, to €9.3bn while the Cooperative Central Bank said that its 90-days-past-due loan stock dropped by €582m to €5.9bn. Hellenic Bank does not disclose information about its 90-days-past-due loans.

According to the Central Bank of Cyprus’ latest data, total non-performing loans in the Cypriot banking system stood at €25.4bn, while total 90-days-past-due loans were €19.3bn.

In the first six months of the year, the three lenders said that they have restructured a total of €3.8bn in bad loans, with Bank of Cyprus’ posting a total of €2.8bn in restructurings, compared with €668m by the Cooperative Central Bank and half this amount by Hellenic Bank.

The three banks also reduced their overall gross loan in the first half of the year by 5.2% to €37.7bn, the data show. Bank of Cyprus reduced its overall loans 6.7% in June, compared with December, to below €21.1bn, followed by the Cooperative Central Bank with 3.7% to €12.3bn, and Hellenic by 2% to €4.3bn.

Bank of Cyprus extended new loans worth €547m in the first six months of the year compared to €152m in the case of Hellenic Bank and €180.1m by the Cooperative Central Bank.

Source: Cyprus Mail

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