Losses of € 174.8 million for 2020 for the Bank of Cyprus Group in relation to losses of € 67.7 million for 2019, with its turnover in 2020 being reduced as it amounted to € 765.1 million. compared to € 910.6 million in 2019.
In the announcement of the preliminary results of the Group for 2020, the Bank of Cyprus notes that successful management of the pandemic was recorded as the priority was to preserve the health of staff and customers, while ensuring the operational operation of the Bank.
Highlights for the year ended December 31, 2020
• Safeguarding the health of staff and customers, while ensuring the operational operation of the Bank
• New borrowing of approximately € 1.4 billion to support the recovery of the Cypriot economy
• Suspension of capital and interest payments until the end of 2020 for more than 25,000 customers (€ 5.9 billion) Significant progress in reducing balance sheet risk despite difficult market conditions
• Reduction of MES of € 2.1 billion, adjusted for MES sales. Sales of NIS amounting to € 1.5 billion and organic reduction of NIS amounting to € 0.6 billion
• Reduction of NPL to loans to 16% (7% after credit losses), and increase of NPL coverage with provisions to 59%, adjusted for NPL sales
• Reduction of weighted assets to total assets to 53%, adjusted for MES sales Pandemic loan portfolio quality management
• Providing support to affected customers, to address short-term liquidity problems
• Close monitoring of loans under the suspension of capital and interest payments
• Encouraging performance after the end of the suspension of payments (December 31, 2020). € 3.6 billion had an installment payment until February 15, 2021 and 95% of them paid their installment Careful cost management
• Total operating expenses (adjusted for excise duty and contributions to the EIB and TEK) for the year 2020 reduced by 12% on an annual basis
• Cost-to-income ratio (adjusted for excise duty and EIB and TEC contributions) to 60% for 2020, at the same levels on an annual basis
• The percentage of customers who use digital channels to conduct banking transactions increased to 75%, increased by 6 p.m. on an annual basis Announcement of a New Strategic Plan and Medium Term Objectives
• Single-digit percentage of NPLs to loans until the end of 2022 • Return on Tangible Equity (ROTE) of approximately 7% New borrowing of € 374 million in the fourth quarter of 2020, increased by 30% on a quarterly basis, reflecting the gradual recovery after the restrictive measures in the first half of 2020
• Total revenues of € 142 million, increased by 3% on a quarterly basis. Operating profit of € 45 million.
• Charge for credit loan losses (cost of risk) amounting to 99 bp. • Organic profits after tax of € 2 million.
• Non-recurring items of € 51 million, including provisions / net loss on sales of NPLs (including restructuring costs) of € 42 million.
• Loss after tax of € 49 million for the fourth quarter of 2020 and € 171 million for the year 2020, after non-recurring data Operating Efficiency
• Total operating expenses of € 91 million for the fourth quarter of 2020 (adjusted for excise duty and contributions to the EIB and TEK), increased by 7% on a quarterly basis • Cost-to-income ratio (adjusted for excise duty and contributions to the EIB and TEK) at 64% for the fourth quarter of 2020 Good Capital Position, Strong Liquidity
• Category 1 Common Equity Capital Index (CET1) 15.2% and Overall Capital Adequacy Ratio 18.7% (with transitional provisions and adjusted for MES sales)
• Deposits amounting to € 16.5 billion, at approximately the same levels on an annual and quarterly basis
• Significant liquidity surplus of € 4.2 billion (Liquidity Coverage Ratio at 254%) Significant Progress in Reducing Risk in the Balance Sheet
• Signing of an agreement for the sale of MES amounting to € 0.5 billion (Helix 2 Portfolio B) in January 2021. Sales of MES amounting to € 1.5 billion from December 2019
• Reduction of MES by € 2.1 billion to € 1.8 billion (€ 0.7 billion after credit losses) in 2020, adjusted for MES sales
• Reduction of NPL to loans to 16% (7% after credit losses) and maintenance of NPL coverage with provisions to 59%, adjusted for NPL sales
