Eurobank Cyprus posts €52.3 million net profit

Eurobank Cyprus on Wednesday announced that it posted a net profit of €52.3 million for 2021, boosting its profitability from the year before, while at the same time improving its asset quality through the further reduction of non-performing loans (NPLs).

“2021 was a milestone year, as it marked the beginning of a very demanding effort, which will continue throughout 2022, to restart the economy and return the market to its pre-pandemic condition,” Eurobank Cyprus Chief Executive Officer Michalis Louis said in a statement commenting on the bank’s financial results.

“Eurobank Cyprus managed through difficult conditions and challenges, which were created by the pandemic, to provide seamless and effective services to its customers, while at the same time, presenting positive indicators in all areas of its business activities, strengthening its already strong capital base, but also its high liquidity,” Louis added.

According to the bank’s financial results, Eurobank’s Capital Adequacy Ratio, as well as the common stock index (CET1), amounted to 25.4 per cent on December 31, 2021.

The bank noted that this percentage, combined with its solid excess surplus liquidity, are strong indicators of its stability.

Specifically, the bank stated that its capital and other reserves amounted to €571 million, recording an increase of €44 million compared to the corresponding results of 2020.

The bank’s loan-to-deposit ratio (excluding loans secured by deposits) rose to 31.4 per cent, while total deposits reached €6.62 billion, with loans amounting to €2.6 billion.

The quality of the bank’s loan portfolio also remains strong, with its Non-Performing Loans ratio decreasing further during 2021, compared to previous years, falling to 2.4 per cent.

At the same time, the bank’s Cost-to-Revenue ratio hovers around 37 per cent.

Regarding the current developments in Ukraine, the bank’s CEO Michalis Louis pointed out the limited direct exposure of Eurobank Cyprus to Russia, something that minimises any direct impact.

Commenting on the possible effects on the Cypriot economy and the indirect ramifications on the bank, Louis stated that there will be effects on the services of international companies, tourism and the real estate market, while also noting the increases in the cost of energy, raw materials and food, causing a chain reaction ultimately resulting in inflationary trends throughout the Cypriot economy.

Regarding 2022, Louis said that expectations are positive, despite ongoing challenges, while also noting that the Cypriot banking sector has a particularly important role to play in the shared effort for growth.

“Eurobank Cyprus has always focused on a customer-centric approach and the provision of quality services with flexibility and speed, something that will continue to do so in 2022, with emphasis on Corporate Banking, Wealth Management, International Business Banking, Treasury Sales and Affluent Banking,” the bank said.

“With the ultimate aim of further improving its customer service, the bank is implementing a holistic digital transformation plan, through the redesign of banking transactions, with a view to facilitating the seamless provision of innovative products and services,” the bank added, explaining that the plan is expected to be completed within the year.