Insider Business Banks post profits after losses of €15 billion

Banks post profits after losses of €15 billion

Overall financial results of Cypriot banks have recorded profits of €186.1 million for the first time since 2010.

After losses of more than €15 billion between 2011-2017, banks in Cyprus sent out a positive signal in 2018 after a year marked with the closure of the Cyprus Co-op Bank and the transfer of its assets and liabilities to Hellenic Bank. It was also a year of remarkable deleveraging of property loans by banks.

At the same time, bank asset write-downs were reduced to €569 million in 2018, compared to past years when they far exceeded €1 billion, striking profitability and capital.

The reduction of the banking sector and the closure of Co-op bank is reflected also in their interest income which was limited to €1.6 billion. It is the first time in years that bank interest income is less than €2 billion. But, nonetheless, it was enough to lead to organic profitability since interest costs were just €645.9 million.

Income from fees and commission also continued to fall, possibly because of the tighter regulatory environment as regards shell companies and foreign transactions in general.

As a result of the closure of the Co-op, overall assets of banks were reduced to €59.6 billion compared to €67.6 billion by the end of 2017. The size of Cypriot banks is now three times bigger than the country’s Gross Domestic Product. In 2010, Cypriot banks had overall assets of €154 billion.

 

Read more:

https://in-cyprus.com/cyprus-banks-nine-month-results-pave-way-for-optimism/

Top Stories

Kolokasi (Taro Root)

Ingredients: (Serves 4) 1 kg kolokasi (taro) root ½ kg pork (lean belly pork or shoulder) cut into large cubes 6 tbsp olive oil 1 head of fresh celery,...

President: Decision to convert Hagia Sophia to mosque a provocation to civilised world

    Τhe conversion of Hagia Sophia to a mosque is another provocation to the civilised world and the international bodies that represent it, President, Nicos...

Larnaca: Recyclefish at Phinikoudes joins fight against plastics

    Larnaca Municipality in collaboration with pharmaceutical and healthcare company Medochemie have installed a fish-shaped structure on Phinikoudes beach to raise awareness about the importance...

Ministry issues heat protection advice as temperatures soar

    Citing an extreme high temperature warning issued by the Met Office for today, the Health Ministry on Saturday published basic heat protection advice. The health...

Turkish parliament passes disputed bar associations law

    Turkey's parliament passed a law on Saturday on changing the structure of bar associations, a move that lawyers argue will further undermine judicial independence...

Taste

Kolokasi (Taro Root)

Ingredients: (Serves 4) 1 kg kolokasi (taro) root ½ kg pork (lean belly pork or shoulder) cut into large cubes 6 tbsp olive oil 1 head of fresh celery,...

Moungra

Moungra is a traditional Cypriot mezze which consists in cauliflower pickled in fermented bread dough and typically served as an appetizer or meze. It...

Cheesy Eggplant Rolls

Ingredients 4 Eggplants 2 tbsp olive oil 1 chopped onion, 2 grated carrots 1 garlic clove (sliced) ¾ of the cup finely chopped canned tomato, ½ ts sugar 1 ts oregano 2 tbsp...

Black eyed peas with chard (Louvia me laxana)

Ingredients: 2 cups black eyed peas small lemon (juice) + 1 tsp lemon zest 1 bunch Cypriot chards olive oil & lemon for serving salt & pepper Method: Step 1 Put the...