09/11/2004 21:21
The profits of the Bank of Cyprus for the first nine months of 2004 showed an impressive recovery, boosting expectations for better days to come in the banking sector. Its impressive increase in revenues both in Cyprus and Greece and the slowdown of the bad debts pushed the bank’s profits up for the first nine months. The net profits of the Group stood at £30.7 million against £9.8 million in the corresponding period of 2003 and £18 million in the corresponding period of 2002. The Bank anticipates that the increase in profitability will continue in 2004.
Impressive increase in revenues
The positive results of the Bank of Cyprus are mostly attributable to the impressive increase in the net income from interests that reached £180 million against £140 million in 2003 (+29%). The increase in net income from interests is attributable to the improvement of the bank’s tariff policy and the payment of the delayed debts. The net interest margin stood at 2.64% in the first nine months of 2004 against 2.53% in 2003.
The successful expansion of the Bank of Cyprus in Greece contributed significantly to the increase in revenues. The loan portfolio in Greece recorded an increase of 23% to £2.42 billion (2003: £1.96 billion), while its share in the total loans of the Group (£6.2 billion) reached 39% against 36% in 2003. The net income from interests from the Group’s operations in Greece surged 24% to £63.8 million. One of the three pounds that the Bank gains, comes from its operations in Greece. By the end of the year, the Bank will have 100 branches in the Greek territory.
It is worth noting that the income from fees, commissions and insurance business recorded an increase of 16% to £80.3 million.
Slowdown in debts but…
The provisions for bad debts are once again the weakest link in the results of the Group, which reached £61 million against £54 million in the corresponding period of 2003 (14%). This increase is significantly lower than that in 2003, while bad debts in the third quarter stood at 4%. For the past two years, however, the total number of bad debts has showed a dramatic increase in the last quarter. “Bad debts will get back to normal”, a BOC official told StockWatch.
Salaries
The positive results of the Bank of Cyprus oppose to the large increase in operating expenses. The total expenses of the Group reached £165 million against £149 million in 2003 (+10%). This increase is mostly attributable to the domestic activities from the pay rises due to the union contracts. The domestic expenses increased by 10% despite a staff cut by 37 persons in the first nine months of the year. Expenditure in Greece increased by 14% against a double increase in the core profits.
Impressive increase in revenues
The positive results of the Bank of Cyprus are mostly attributable to the impressive increase in the net income from interests that reached £180 million against £140 million in 2003 (+29%). The increase in net income from interests is attributable to the improvement of the bank’s tariff policy and the payment of the delayed debts. The net interest margin stood at 2.64% in the first nine months of 2004 against 2.53% in 2003.
The successful expansion of the Bank of Cyprus in Greece contributed significantly to the increase in revenues. The loan portfolio in Greece recorded an increase of 23% to £2.42 billion (2003: £1.96 billion), while its share in the total loans of the Group (£6.2 billion) reached 39% against 36% in 2003. The net income from interests from the Group’s operations in Greece surged 24% to £63.8 million. One of the three pounds that the Bank gains, comes from its operations in Greece. By the end of the year, the Bank will have 100 branches in the Greek territory.
It is worth noting that the income from fees, commissions and insurance business recorded an increase of 16% to £80.3 million.
Slowdown in debts but…
The provisions for bad debts are once again the weakest link in the results of the Group, which reached £61 million against £54 million in the corresponding period of 2003 (14%). This increase is significantly lower than that in 2003, while bad debts in the third quarter stood at 4%. For the past two years, however, the total number of bad debts has showed a dramatic increase in the last quarter. “Bad debts will get back to normal”, a BOC official told StockWatch.
Salaries
The positive results of the Bank of Cyprus oppose to the large increase in operating expenses. The total expenses of the Group reached £165 million against £149 million in 2003 (+10%). This increase is mostly attributable to the domestic activities from the pay rises due to the union contracts. The domestic expenses increased by 10% despite a staff cut by 37 persons in the first nine months of the year. Expenditure in Greece increased by 14% against a double increase in the core profits.
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