Eurobank Cyprus on Wednesday released its financial results for the first half of 2023, with the figures reflecting a solid performance characterised by strong capital adequacy and profitability.

The bank’s net profit after tax soared to €90.8 million during this period, marking a remarkable 144 per cent increase compared to the same period last year, with a growth of €53.6 million.

The bank’s strategic focus on effective cost management, coupled with higher operating profits, contributed to a notable improvement in its Cost-to-Income Ratio, which saw a significant reduction from 32 per cent in the first half of 2022 to an impressive 19 per cent in the first half of 2023.

Michalis Louis, Eurobank Cyprus’ Chief Executive Officer, explained that “the first half of 2023 ended with a positive outlook, which allows the bank to continue to support entrepreneurship, sustainable investments, and its private clients”.

“At Eurobank Cyprus, our key priority is to continue to evolve and provide high-quality specialised services to our customers, through a customer-centric approach, which has always been a core element of our modus operandi and differentiates Eurobank from the competition,” he added.

Moreover, Louis explained, within this framework, the bank launched on June 1, 2023, a reduction of their interest rate on mortgage loans by 50 basis points for a one-year period, “in an effort to reward and support individual borrowers who are up-to-date with their loan repayment obligations”.

Eurobank Cyprus also demonstrated robust capital strength, with Capital Adequacy and Common Equity Tier 1 (CET1) ratios standing strong at 29.9 per cent during the first half of 2023.

This represents a noteworthy 260 basis points increase compared to the figures recorded at the end of December 2022.

Importantly, these ratios comfortably exceed the minimum regulatory requirements set for 2023, reflecting the bank’s commitment to sound financial management.

Furthermore, the loan portfolio maintained excellent quality, reinforcing the bank’s stability. The loans to deposits ratio (excluding loans secured by deposits) reached 31 per cent, with total deposits amounting to €7.26 billion, displaying a promising increase of €58 million since the start of the year.

At the same time, Louis stated that particular emphasis has been placed on upgrading the bank’s infrastructure and further digitising its services through a large-scale investment project, which is already underway and aims to make the bank more user-friendly, faster, and more effective.

Moreover, the bank noted that improving its culture of sustainable development, by focusing on ESG targets and criteria, is still high on its list of priorities.

“With a view to further increasing the bank’s activities, we have emphasised in upgrading our Private Banking division, providing integrated services and products through the Group’s presence in Cyprus, Greece, Luxemburg, and the UK,” Louis said.

“Eurobank has always held a leading position and provided innovative services in the field of Wealth Management and will continue to do so in the future,” he added.

What is more, Louis said that the bank is also closely following developments in respect of the Cypriot economy and the management of public finances.

“We would like to encourage the government to continue, without any hesitations, to prudentially manage the country’s public finances, while remaining committed to achieving a fiscal surplus, a significant reduction of public debt which unfortunately is still very high and continue to strive for an upgrade of Cyprus’ credit rating,” Louis stated.

“The positive image created in the past few years must be maintained and further strengthened in the period ahead,” he added.

“Any decisions must be very well thought out, since the current circumstances, both at the international and domestic level, do not allow for any complacency,” the Eurobank Cyprus CEO concluded.

Eurobank Cyprus’s impressive financial results for the first half of 2023 underscore the bank’s commitment to maintaining a robust financial position while delivering enhanced value to its customers and stakeholders.

With a strong capital base and improved profitability metrics, the bank is well-positioned to navigate the ever-changing financial landscape in the coming months.