BoC posts first quarter profits

NicosiaThe Bank of Cyprus (BoC) has announced it will post a net profit of €50 ml for the first quarter of 2016.

“The strong momentum in the Bank’s loan restructuring activities continues with progress across all asset quality metrics. During the first quarter of 2016, which ended 31 March, the Bank completed further restructurings of lending exposures across the spectrum of its loan portfolio,” the Bank said in an official announcement.

“This resulted in around €1 bln reduction in loans in arrears for more than 90 days (90+ DPD) for the first quarter of 2016, with the ratio of 90+DPD to gross loans declining to 47% at 31 March 2016 from 50% at 31 December 2015. Further reduction in 90+DPD is expected during the coming quarters of 2016, reflecting the restructuring momentum and the improving economic and operating conditions in Cyprus. The provision coverage of 90+ DPD is expected to be around 50%.”

The Bank’s Common Equity Tier 1 capital (CET1) ratio (transitional basis) is expected to increase to about 14.3%, up from 14.0% at 31 December 2015, reflecting the profitability of the first quarter of 2016 and the on-going reduction in risk weighted assets.

Moreover, the Bank said its liquidity position continues to improve. “Although deposits in Cyprus remained unchanged during the first quarter of 2016, reflecting seasonality factors and the impact from the change in the foreign exchange rate of Euro against US Dollar, deposit inflows have picked up during April 2016. The improving liquidity position has allowed the Bank to repay €600 ml of ELA post 31 December 2015, reducing it to current level of €3.2 bln.”