Insider Business Cdbbank’s profitability raises optimism

Cdbbank’s profitability raises optimism

A feeling of optimism is prevailing in cdbbank now that results over the first five months of 2019 have recorded profitability after its recent capital increase.

The lender’s decision to raise capital by €4.3 million was taken at an Extraordinary General Meeting in March, with existing shareholders covering €3.3 million and the remaining amount raised through a private placement by a domestic institutional investor, according to its annual report.

The lender recorded losses of €2.2 million in 2018, reportedly due to efforts to reduce risks in its balance sheet such as non-performing loans and the voluntary liquidation of its subsidiary in Russia.

As of May 31, the Group’s after-tax profits amounted to €3 million due to effective operations, successful real estate disposition and resolved cases of non-performing loans.

The bank’s non-performing loans decreased by 42% (€125 million) while the coverage ratio stood at 52%. At this stage, the bank is ahead of what is provided in the relevant Capital Plan submitted to the Central Bank of Cyprus.

Taking into account the capital increase and profitability up to May, the bank’s total capital adequacy ratio today stands at 16.7%, while the ratio required by supervisors is 15.7% as from January 1.

In addition, the bank’s turnover amounted to €17.9 million by end of 2018 compared to €18.2 million by end of 2017.

Regarding the liquidation process of the subsidiary in Russia, clearing accounts were submitted to the Russian Central Bank on June 7 and its response was expected within 30 days. Upon completion of the liquidation process the bank can repatriate frozen funds, the annual report also said.

Moreover, two new board directors were appointed in May – Avgoustinos Papathomas and Christodoulos Plastiras. And Costas Poullis who is a former chief executive of the Central Bank of Cyprus was also appointed on the board back in February.

Read more:

Top Stories

164 new cases, one death announced on Tuesday

 The Health Ministry announced the death of one person due to COVID-19. This raises the death toll from the virus in Cyprus to 176,...

Where to get antigen rapid tests on Wednesday

The Health Ministry announced the following antigen rapid test sites for Wednesday, 20 January 2021:   LIMASSOL Parking place Sklavenitis supermarket, Germasogia 08:30-16:30 Grigoris Afxentiou Square 08:30-16:30 Parking place...

Italy’s Mount Etna erupts at night time

Long streams of red-hot lava flowed down Mount Etna as Europe's tallest and most active volcano erupted again.   At 10,926 feet, Etna is the continent's...

Cyprus secures another 565,000 doses of Pfizer/BioNTech vaccines

Through additional procedures of the European Commission, Cyprus secured another 565,000 doses of Pfizer/BioNTech vaccines, increasing the number of orders from the specific company...

Everything ready for inoculations among enclaved Greek Cypriots and Maronites

All necessary arrangements have been made to start inoculating against COVID-19 the enclaved population and those who repatriated in the Karpas peninsula and the...


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...


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...