Insider Business Bank of Cyprus posts €95 million profit in 1Q 2019

Bank of Cyprus posts €95 million profit in 1Q 2019

The Bank of Cyprus announced on Monday that it posted a €95 m profit for the first quarter of 2019.

The Bank reported a “good capital position”, as at 31 March 2019 the CET1 ratio was 14.9% and the Total Capital ratio was 17.9%, both pro forma for Helix, “well in excess of our regulatory requirements”.

It added that its non performing exposures (NPEs) ratio stood at 35% and coverage at 48% pro forma for Helix.

In August 2018 the Group reached an agreement for the sale of a portfolio of loans with a gross book value of €2.8 b, secured by real estate collateral, known as ‘Project Helix’.

The Bank said moreover that its “management is actively exploring strategies to further accelerate de-risking including further portfolio sales”.

“Our results this quarter reflect continuing progress against our core objective of balance sheet repair”, said the Bank’s CEO John Patrick Hourican.

“We have continued to make good progress towards completion of the sale of €2.7 b non-performing loans in Project Helix, including obtaining the required regulatory approvals from the ECB for the Significant Risk Transfer benefit from the Transaction. We expect completion during the second quarter of 2019”, he added.

Hourican noted that “project Helix complements our on-going organic non-performing exposure (NPE) reduction, which amounted to €157 m for the quarter, broadly in line with our organic target of €800 m for 2019. This was the sixteenth consecutive quarter of organic reductions in NPEs”.

He added that since the peak in 2014, and pro forma for the sale of the Helix portfolio, the Bank has now reduced the stock of NPEs by 70% to €4.6 bn. This stock of delinquent loans is covered by 48% provisions.

He said that even though they have reduced NPEs by 70% since peak, there are still €4.6 b of delinquent loans to be addressed, and for which they have plans in place.

(Cyprus News Agency)

Top Stories

Meghan loses latest court battle with UK tabloid newspaper

Meghan, Britain's Duchess of Sussex, has lost the latest skirmish in her privacy lawsuit against a tabloid newspaper, after London's High Court ruled on...

Armenia’s defence ministry says warplane shot down by Turkish F-16 fighter jet

A Turkish F-16 fighter jet shot down an Armenian SU-25 warplane over Armenian territory on Tuesday, killing the pilot, an Armenian defence ministry spokeswoman...

Greek, Italian and French officials to hold talks with Petrides during visits

Greek Minister of National Defence Nikos Panagiotopoulos, accompanied by the Chief of the Hellenic National Defence General Staff Konstantinos Floros, Chief of Defence Staff...

Employers – clients determine working time of 74% of workforce in Cyprus

In 2019, the employer, organisation or clients mainly decided on the working time of almost 118 million of the 194 million employed people aged...

Syllouris expresses solidarity and support to the Armenian people

Cyprus House President Demetris Syllouris expressed feelings of sincere solidarity and fraternal support to the Armenian people during a telephone conversation he had on...

Taste

Sheftalies

Sheftalies, a very tasty dish from the charcoal grill, are minced meat shaped into small sausages and wrapped in “panna” (suet). Panna is a...

Spicy grilled soutzoukakia

Place all ingredients for soutzoukakia in a bowl and mix well, preferably using a food processor, until well combined. Using the mixture, form cigar-shaped...

Souvlakia

Pork souvlaki: Put the meat and all the other ingredients in a bowl (not metal) and mix well. Cover the bowl and keep in...

Pastelli (Carob Toffee)

The nutritional sweet of Pastelli is made with the syrup of carob pods, produced by boiling their pulp until it forms a thick, sticky...