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Bank of Cyprus posted €1 mn profit for first half of 2021

01/09/2021 13:38

The Bank of Cyprus said Wednesday that it posted a profit of €1 mn for the first six months of the year.

The Bank’s CEO, Panicos Nicolaou said that “leveraging on the stronger economic environment in the quarter, our strategy is beginning to deliver results, demonstrated by the improvement in our performance before non-recurring items which nearly doubled on the prior quarter.”

During the second quarter of the year, the Bank generated a total income of €152 mn and a positive operating result of €57 mn, up by 28% on the prior quarter. The profit after tax and before non-recurring items stood at €34 mn.

After recognising non-recurring items, the most significant of which are €12 mn of costs relating to the Tier 2 Capital Notes tender offer and €26 mn of costs relating to the NPE sales of which more than half will be unwound over time, the overall result for the quarter was a loss after tax of €7 mn. The overall result for the first six months of the year was a profit of €1 mn.

As at 30 June 2021, the Bank’s capital ratios (on a transitional basis) were 19.2% for the Total Capital ratio and 14.2% for CET1 ratio.

The Bank said that its liquidity position also remained strong with €5.7 bn surplus liquidity and deposits on its balance sheet increased in the quarter by 3% to €16.8 bn.

In June 2021 the Bank completed Project Helix 2 and derecognised €1.3 bn NPEs from its balance sheet. It also organically reduced NPEs by €171 mn in the first half of the year.

“We continue to actively explore strategies to accelerate de-risking including further portfolio sales, and remain on track with achieving a single digit NPE ratio by the end of 2022”, Nicolaou said in a press statement.

At the same time, 96% of performing loans whose payment deferrals have expired and had an instalment by mid-August, presented no arrears.