Bank of Cyprus said Tuesday it has reduced non-performing exposures by €454m, or 5 per cent quarter-on-quarter in the first three months of the year, as it registered a net profit of €43m.
“We remain confident that we can make further progress in reducing our NPE stock during the coming quarters and we remain on-track to achieve our full year target of ~€2b organic NPE reduction,” BoC CEO John Hourican said. “At the same time, we continue to actively explore certain structured solutions to further accelerate NPE reduction and more quickly return the bank to a more normalised position.”
At the end of the first quarter of 2018, BoC’s NPE ratio was 45 per cent while coverage reached 51 per cent, well-above the EU average of 44 per cent and in line with our medium-term target of coverage above 50 per cent, he said.
The Irish banker said the lender’s Q1 results reflected the continuing delivery against the core objective of balance sheet repair.
“This was the twelfth consecutive quarter of material NPE reduction,” Hourican said.
BoC has reduced its NPE’s by 44 per cent since December 2014.
The island’s biggest lender, which was forced to seize deposits to recapitalise in 2013 as part of Cyprus’ bailout deal, had a total income of €231m in Q1 and an operating profit of €125m.
Local deposits grew by €291m, to €18bn, while new lending reached €717m, a rise against Q1 2017. Its loan to deposit ratio was 80 per cent.
The bank’s capital remained in excess of regulatory requirements, Hourican said, and “we remain on target to exceed 13 per cent on a CET1 basis by the end of the year, based on organic balance sheet repair.”