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.