Eurobank Cyprus sees €40.1m profit after tax, solid loan repayment

Eurobank has remained in profit for the fiscal year of 2020 despite the difficult conditions posed by the pandemic. Profit after taxes for the fiscal year was €40.1 million, down from €44,5 million in 2019 – the decline due largely to the slower economy, the bank said in a statement on Monday.

“We expect to continue on this profitable course,” commented Achilleas Malliotis, general manager and chief operations officer at Eurobank Cyprus, in an interview with the Cyprus Mail.

The bank has remained in a strong capital position, with the Capital Adequacy Ratio as well as the Common Equity Tier 1 ratio (CET1) at 26.2 per cent.

Liquidity also remains strong with deposits reaching €5.8 billion and the loan-to-deposit ratio (excluding loans secured by deposits) amounting to 33 per cent.

“New lending has continued strong despite the crisis, actually up from 2019” Malliotis noted, “nor has the bank been much affected by the various loan moratoria. We expect nearly all our borrowers to begin repaying again once the freeze on repayments ends.”

Armed with its strong capital adequacy, significant excess liquidity and recurring profitability, the Bank stands by its customers and continues to support them with customised financing programs and products but also by participating in all government support plans, the statement said.

The bank has a very good quality loan portfolio, with the Non-performing Loans ratio (NPE ratio based on the guidelines of the European Banking Authority, EBA) remaining very low, at 3.2 per cent.

Expenses have also remained low, with efficient management of operating costs, with the Cost to Revenue ratio at 37 per cent.

“We see light at the end of the tunnel in the coming year, as Cyprus emerges from the pandemic crisis,” Malliotis predicted. “Economic recovery should be growing in strength, although the contribution of tourism to recovery is critical,” he added.

Eurobank Cyprus is ready to support and contribute to the economic growth expected in 2021 despite the challenges presented by the effects of the Covid-19 pandemic on the global economy but also on society and business in Cyprus, the statement said.

“From the beginning of the crisis, we have successfully implemented the business continuity plan with the aim of continuously serving and supporting our customers. In this context, we are constantly reviewing the data and adjusting our actions accordingly, making all the necessary adjustments to offer better service to our customers.”

At the same time, the bank continues to be in the process of technological upgrade to evolve into a modern customer-centric organisation that offers innovative products and services with a seamless experience to its customers. In 2021, it will continue to streamline its processes and further strengthen its innovative digital services, aiming to further improve customer service with a holistic redesign of their banking transactions, according to the statement.