You are here

BOCY: Forecasts for profits of €357m

05/11/2007 11:05
Analysts expect that the net profits of Bank of Cyprus to be announced on Thursday will soar 60.4%. The estimates of the four firms for the bank’s nine-month results 2007 are exceptionally encouraging. They believe that BOCY’s profits will be shot to €357 million against €22.5 million in the corresponding period of 2006. Deutsche Bank anticipates that BOCY will announce after-tax profits of €360 million. Eurobank expects profits of €348.4 million, Egnatia believes that the profits will reach €359.4 million and CLR Financial & Securities Services estimates that profits will stand at €360 million.

The Board of Directors expects that the results for the first nine months of the year will show improvement compared to the corresponding period of 2006 and they will follow a similar increase with that of the first half. In the first half of the year, BOCY’s profits recorded an increase of 57.9% to €230 million against €145.7 million last year.

With the announcement of the nine-month results, BOCY will revise its profitability target for 2007. The bank anticipates that the after-tax profits for 2007 will be better than the target of €415 million announced in February 2007.

The analysts insist that the sharp increase in the bank’s profits is linked to the increase in the income from interests and the restraint of cost. They also expect that bad debts will fall significantly.

According to DB, which maintains the TP at €17 with a buy recommendation, Bank of Cyprus revenues will rise 24%, while the income from interests will surge 24%. DB anticipates that BOCY’s profits will reach €492 million in 2007, €609 million in 2008 and i€764 million in 2009. The EPS will stand at €0.88 in 2007, €1.08 in 2008 and €1.36 in 2009.

Eurobank expects an increase of 28% in loans in domestic market and 23% in Greece.

Recently, Bank of Cyprus inaugurated its first branch in Moscow. The bank aims to launch a branch network in Moscow and St. Petersburg within the next three years.