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

Where to get a rapid test Monday March 1st

  Aiming towards the monitoring of the community and workplaces, the  government continues free programmes of rapid antigen testing for employees of businesses that have...

Covid relaxations in occupied north tomorrow, as cafes and restaurants reopen

  Cafeterias, restaurants and on the road food stalls reopen tomorrow in the occupied north, as a number of covid relaxations come into force. The...

No compromises on vaccine safety, EMA chief tells Philenews

  Vigilance, patience, but not concern, is the advice of the European Medicines Association chief Emer Cook, who assured in an interview to Philenews that...

Guterres invitation on Cyprus five party conference reaches Tatar

  The Turkish-Cypriot leader Ersin Tatar today received an official invitation from UN Secretary General Antonio Guterres to attend a five party informal conference on...

Eleven drivers under substance influence in two weeks

  Eleven drivers have been found positive to drug substances following traffic checks over the  past two weeks, from February 11 to 28. In the latest...

Taste

Squash soup

Ingredients: 1 kg pumpkin, cut into small cubes, approximately 5 cups 2 medium (400g) sweet potatoes, cut into cubes, approximately 2 ½ cups 1 chopped leek, only...

Mezedes

No visit to Cyprus is complete without enjoying the traditional meal of many small dishes known as ‘meze’. This large feast, which has been a...

Prawns with fried cheese, barley shaped pasta

Put the barley shaped pasta into a small pan with salted water, bring to a boil and when tender, drain. Peal the prawns leaving...

Salmon and shrimp sheftalies

Mix all ingredients for tabbouli in a bowl and keep to one side so flavours can combine. Prepare the sheftalies: wash and soak the casing...