Bank of Cyprus announced profits of 1 million euros in the first half of 2021. Last year, losses of 126 million euros were announced in the first half of 2020.
Operating profit in the second quarter of the semester amounted to 57 million euros, increased by 28% on a quarterly basis. New borrowing amounted to 894m euros in the first half, up 30% year-on-year.
Increased recurring profits
- Total organic revenue increased by 11% on a quarterly basis
- In total for the first six months of 2021, recurring profit after tax amounted to 51 million euros . The second quarter was particularly positive, as recurring profit after tax for the second quarter doubled (to 34 million, compared to 17 million in the first quarter).
- The operating profit for the second quarter recorded an increase on a quarterly basis by 28% (operating profit for the quarter was 57 million euros).
- Revenues from insurance operations increased by 7% in the first half and by 36% on a quarterly basis.
- The completion of the sale of Helix 2 and the successful refinancing of the Tier 2 bond had an impact on the profitability of the second quarter, which closed with a loss of € 7 million. For the first half, the Group recorded a profit of € 1 million.
Strong position to strengthen the economy
- Real fresh borrowing of 894 million euros in the first six months translates into direct support for the real economy and satisfactory results of the bank's RestartCy program. The new loans show an increase of 30% on an annual basis, setting the bank within the ambitious targets.
- Loans to households increased by 37% compared to the same period last year.
- Strong liquidity with a surplus of 5.7 billion and total deposits of 16.8 billion euros (Liquidity Coverage Ratio at 303%) combined with the bank's capital position, allow us to continue to support the real economy.
- The close monitoring of the needs of the customers and the timely support that emerged from Autumn 2020, led to the refutation of the estimates for the effects of the dose suspension.
- 96% of the serviced loans under the suspension of capital and interest payments that ended, and with installment payment until August 12, 2021, showed no arrears
- At the same time , new borrowing continues to support the exit from the temporary recession of 2020.
- Reduction of MED percentage to loans to 14.6% (6.4% net). The bank is still moving within the target for a single digit percentage of NPLs. The organic reduction of NPLs including restructurings amounted to € 171 million for the first half of 2021.
- The “cost of risk” index decreased by 14 points. on a quarterly basis and is now at 52 p.m. for the second quarter 2021.
- The Class 1 Common Equity Index (CET1) amounts to 2% and the Overall Capital Adequacy Ratio to 19.2%
- The first Bank of Cyprus to achieve the target for MREL of January 2022, after the successful issuance of a bond of € 300 million (Senior Preferred Notes) during the second quarter, in low pricing (2.5%) and with significant over-coverage.
- The digital transformation continues and the adoption of digital products and services by customers continued to grow and gain momentum.
- At the end of July 2021, 87% of the number of transactions related to deposits, cash withdrawals and transfers inside and outside the Bank, were made through digital channels (an increase of approximately 22 points from 65% in September 2017, when the digital transformation).
- In addition, 77% of private customers choose digital channels to execute their transactions (an increase of about 17 pm from 60% in September 2017).
- At the end of July 2021, the active users of the mobile banking application and the active users of QuickPay increased by 18% and 53% respectively on an annual basis.
- The highest number of QuickPay users so far was recorded in July 2021 with 112 thousand active users. Respectively, the highest number of QuickPay payments so far was recorded in July 2021 with 321 thousand transactions.
Panikos Nikolaou, CEO :
Our strategy is starting to pay off, as evidenced by the improvement in our performance, excluding non-recurring items, which has doubled compared to the previous quarter.
The results reflect our determination to continue to contribute, not only to the exit from the Pandemic but also to the creation of perspective through our banking operations and the technological upgrade of Cyprus.
We continue to work hard, staying focused on achieving our strategic goals we have set.