Cyprus Business Now

In an official statement released by Hellenic Bank this week, it has been confirmed that the bank has retained its position as the most adequately capitalised systemic bank in Cyprus, both in the baseline and adverse scenarios, following a recent stress test exercise.

“This reaffirms the resilience of the bank’s credit risk profile,” the statement read.

Hellenic Bank successfully completed the stress test conducted by the European Central Bank for the year 2023, according to the announcement.

The results of the stress test show a significant improvement compared to the previous exercise conducted in 2021, particularly concerning the minimum capital requirement under adverse conditions. There was a 2-point improvement from the 2021 results in this regard.

The stress test is a crucial tool used by regulators and central banks to assess the financial stability and resilience of banks under adverse economic conditions.

It helps ensure that banks are well-prepared to withstand economic downturns and financial shocks and that they have sufficient capital buffers to protect depositors and maintain stability in the banking system.

Hellenic Bank’s success in the stress test highlights its strong financial position and its ability to navigate challenging economic scenarios.

The Industrial Producer Price Index (IPPI) in Cyprus saw a notable increase of 4.5 per cent in June 2023, compared to the same month of the previous year, according to a report by the state’s statistical service.

The index for June 2023 reached 140.0 points, with 2015 acting as the base year, set at 100 units, indicating a modest 0.1 per cent increase when compared to May 2023.

During the period from January to June 2023, the index showed a substantial overall rise of 12 per cent in comparison to the corresponding period in 2022.

In a monthly comparison, the IPPI remained stable in the sectors of mining and quarrying, manufacturing, and electricity supply. However, the water supply and waste management sector witnessed a growth of 2.3 per cent.

Moreover, when analysing the changes in comparison to the same month of the previous year, increases were observed in the mining and quarrying sector (11.6 per cent), electricity supply (6.6 per cent), and manufacturing (4.4 per cent).

On the other hand, the water supply and waste management sector experienced a decrease of 5.4 per cent.

By manufacturing sector, in June 2023 compared to the same month of the previous year, there were notable increases in the production of other non-metallic mineral products (9.7 per cent), the food and beverages industry (7.3 per cent), furniture manufacturing, other manufacturing activities, and repair and installation of machinery and equipment (5.9 per cent).

In addition, electronic and optical products, and electrical equipment manufacturing rose by 3.4 per cent, while paper and paper products, and printing increased by 2.9 per cent.

However, there was a decline in the production of basic metals and the manufacture of fabricated metal products (-5.5 per cent).

The rising trend in the Industrial Producer Price Index suggests potential inflationary pressures in the manufacturing sector.

The Cyprus Stock Exchange (CSE) ended Tuesday, August 1 with losses.

The general Cyprus Stock Market Index was at 116.12 points at 12:46 during the day, reflecting a decrease of 0.16 per cent over the previous day of trading.

The FTSE / CySE 20 Index was at 70.24 points, representing a drop of 0.2 per cent.

The total value of transactions came up to €696,219.

In terms of the sub-indexes, the main, alternative and investment firm indexes fell by 0.08 per cent, 0.90 per cent, and 1.74 per cent respectively. The hotel index remained stable.

The biggest investment interest was attracted by the Bank of Cyprus (+1.09 per cent), Logicom (-0.84 per cent), Hellenic Bank (+0.53 per cent), Blue Island (+9.68 per cent), and Demetra (-1.82 per cent).