Cyprus Mail
Cyprus

CCB records €7m profit

Former Co-op chairman Nicolas Hadjiyiannis is 'possibly responsible for the commission of offences'

The central cooperative bank (CCB) said on Tuesday it has recorded a net profit of €7m in 2016 even after raising its provisions for bad debts by €116.5m.

Before provisions, the bank said it made a profit of €145m.

The CCB will also have to return some €111m to borrowers who were mistakenly charged with the wrong interest rate between 2007 and 2011.

The mistake concerns 11,323 accounts and has resulted in a drop in capital by €75m.

The CCB continues to maintain a capital adequacy ratio of 15.4 per cent against the required minimum of 8 per cent.

The lender’s non performing loans dropped by €347m in 2016, a year in which it restructured a record €1.26bn in problematic advances.

Total deposits dropped 1.4 per cent year-on-year in 2016, to €12.6bn

The co-operative sector’s deposit market share was 25.6 per cent compares with 27.8 per cent in 2015.

“Challenges remain heightened in 2017 since, apart from domestic competitive pressures, there is a need … for more ground-breaking and multifaceted actions to tackle and reduce non performing loans,” CCB chief Nicolas Hadjiyiannis said. Such actions were in the pipeline, he added.

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