Insider Business Bank of Cyprus records losses of €37 million in first 9 months...

Bank of Cyprus records losses of €37 million in first 9 months of 2018

Bank of Cyprus has recorded losses of €37 million in first 9 months of 2018 compared to losses of €554 million at the same period of 2017. The bank’s organic profitability was affected negatively by losses from the sale non-performing exposures (NPEs) of €2.7 billion (Helix project).

The bank recorded profits of €17 million for the third quarter of this year.

The sale of the NPEs portfolio resulted in the greatest reduction of total provisions to €150 million compared to €836 million at the same period of last year. Provisions for the impairment of loans reached €128 million compared to €730 million at the same period of last year.

During the third quarter of this year the bank continued the organic reduction of NPEs by 4% on a quarterly basis or €293 million. NPEs amount to 47% of the total loan portfolio of the bank, while after the Helix project they would drop down to 37% of total loans.

“Helix is an important step forward in repairing our balance sheet and stabilising our capital position. We expect execution in the first quarter of 2019, upon receipt of regulatory approval from the ECB,” the bank’s CEO John Patrick Hourican said in a statement.

This portfolio sale complements our organic non-performing exposure (NPE) reduction. During the third quarter, we reduced NPEs by €224 mn, he added.

“This is our fourteenth consecutive quarter of meaningful reductions in NPEs and is in line with our post-Helix guidance. NPEs reduced to €7.6 bn (€5.0 bn pro forma for Helix),” he notes.

“We have a clear strategy for continuing the improvement in the asset quality position of the bank and further deal with the residual c.€5 bn of non-performing loans. We remain as focused as ever on continuing to seek solutions, both organic and inorganic, to make the bank a stronger, safer, Cyprus-focused institution, capable of supporting the local economy,” Hourican points out in his statement.

(Cyprus News Agency)

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