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Eurobank Cyprus shows €26.1 million profit in challenging half-year

Eurobank donates medical supplies and equipment to government authorities Eurobank has donated 100,000 euros to the government for the acquisition of medical supplies and equipment. The donation was made as part of Eurobank's Social Corporate Responsibility program, as well as in response to the challenging times the island is currently going through.

Eurobank Cyprus half-year results were slightly above forecasts, as the bank showed profit after taxes of €26.1 million, with a positive outlook, the bank announced with a statement on Wednesday. Earnings before tax were €32.2 million.

“As economic conditions gradually improve, we are in step, improving our results,” Achilleas Malliotis, general manager and chief operations officer at Eurobank Cyprus told the Cyprus Mail in an interview. “This may be a gradual process, but it will continue.”

Mr. Fokion Karavias, CEO of the parent company Eurobank, noted: “Greece, Bulgaria, and Cyprus, our core markets, remain among the least affected countries in Europe.” (from the analyst call on Tuesday).

While profit was down from €44.5 million for the same period in the previous year, along with earnings falling from 59 million, analysts, who follow the parent company, attributed the decline to the very challenging conditions caused by the pandemic crisis, which, while under good control in Cyprus, is not over, and which has caused a substantial  drop in the key tourism sector.

Operating costs were controlled, with the Cost-to-Revenue ratio at 36.7 percent, according to the statement.

The bank’s liquidity position is also strong, with deposits reaching €5.491 million and the loan-to-deposit ratio (excluding loans secured by deposits) amounting to 32 per cent. Capital reserves are also solid with the Capital Adequacy Ratio as well as the common stock index (CET1) amounting to 25.1 per cent.

Asset quality is also high, with the Non-performing Loans ratio remaining very low, at 3.3 per cent.

“Global efforts to reduce the pandemic leave us optimistic that 2021 will be an economically better year than 2020. The serious possibility, however, that the effects of the pandemic will be carried over to the next two to three years requires a collective effort. by all actors to mitigate further adverse effects.

Eurobank Cyprus will continue to play a leading role in the recovery of the Cypriot economy and contribute to the return to normalcy as soon as possible,” the bank said in its statement.



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