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Bank of Cyprus Q1 profit rises YOY on lower impairments

Bank of Cyprus Holdings PLC reported first-quarter unaudited consolidated profit attributable to owners of the company of €43.2 million on a statutory basis, up from €2.2 million earned in the same period in 2017.

EPS was 9.7 cents, compared to 0.50 cent a year earlier.

Net interest income fell year over year to €122.8 million from €156.4 million. Fee and commission income amounted to €43.3 million, compared to the year-ago €45.8 million, while fee and commission expense came in at €2.6 million, virtually unchanged from a year ago.

Credit loss expense on financial assets totaled €75.8 million in the period, down from €84.1 million a year earlier. Impairment of other financial instruments declined on a yearly basis to €1.9 million from €23.3 million, while impairment of nonfinancial instruments fell to €5.0 million from €8.3 million.

The bank's fully loaded common equity Tier 1 ratio, allowing for IFRS 9 transitional arrangements, stood at 11.7% at March-end, compared to 12.2% at the end of 2017.

The bank said it has reduced its stock of nonperforming exposures by €454 million, or 5%, during the first quarter to €8.35 billion as of March-end, accounting for 45% of its gross loans, compared to 47% as of 2017-end. Since December 2014, the bank has reduced its NPE by 44%.

"We remain confident that we can make further progress in reducing our NPE stock during the coming quarters and we remain on track to achieve our full-year target of [approximately] €2 billion organic NPE reduction," Group CEO John Patrick Hourican said. He added that the group "continues to actively explore certain structured solutions to further accelerate NPE reduction and more quickly return the bank to a more normalized position."

Bank of Cyprus Holdings is the parent of Bank of Cyprus PCL.