Bank of Cyprus on Tuesday announced an after-tax loss of €37m for the first nine months of 2018 compared with an after-tax loss of €553m in the same period las year. The bank posted a €17m profit in the 3rd quarter compared with a loss of €97m in the 2nd quarter, it said.
“Our results this quarter reflect continuing delivery against our core objective of balance sheet repair,” BoC Group Chief Executive John Hourican said in a statement.
This was accelerated through the agreement for the sale of non-performing loans in Project Helix.
Hourican said Helix was an important step forward in repairing the bank’s balance sheet and stabilising its capital position.
“We expect execution in the first quarter of 2019, upon receipt of regulatory approval from the ECB,” he added.
Hourican said that during the third quarter, BoC reduced non-performing exposures (NPE) by €224m. This was the bank’s 14th consecutive quarter of meaningful reductions in NPEs and is in line with post-Helix guidance, he said.
“Since the peak in 2014, and including the sale of the Helix portfolio, we have now reduced the stock of NPEs by 67 per cent or by €10bn,” Hourican said.
As at 30 September 2018 – including the benefit of Helix – the bank has €5bn of NPEs remaining, which are covered by 49 per cent provisioning.
During the third quarter, deposits in Cyprus remained stable. New lending in Cyprus reached €1.5bn in the first nine months of the year, exceeding new lending in Cyprus for the corresponding period in 2017.
Cyprus deposits increased by 2 per cent €16,850m at 30 September 2018, compared with €16,486m at 30 June 2018, accounting for 100 per cent of Group customer deposits, after the loss of control of the UK subsidiary.
The 10 per cent increase in local deposits in the first nine months more than offset the 8 per cent reduction in deposits of International Business Units (IBUs) in the same period, the bank said.
BoC’s deposit market share in Cyprus had reached 36.3 per cent at 30 September 2018 (compared with 35.1 per cent at 30 June 2018.