Bank of Cyprus Posts €133M Profit in Q1, Strengthens in Banking Sector

May 16, 2024

    Economic Resilience and Profitability

    The Bank of Cyprus has reported a profit after tax of €133 million for the first quarter of 2024. Despite a 4 percent decline from the previous quarter, this figure marks a significant 40 percent increase compared to the same period last year. Group CEO Panicos Nicolaou highlighted the bank’s strong start to the year, emphasizing the proposed total distribution of €137 million in respect of 2023 earnings, which includes a cash dividend and an inaugural share buyback program.

    Underpinning these financial results is Cyprus’s resilient economy, which saw a 3.3 percent GDP growth in the first quarter, surpassing the Euro area average. The bank also experienced a surge in new lending, with the gross performing loan book reaching €10 billion. Nicolaou attributed this success to the Cypriot economy’s strength amidst geopolitical uncertainty.

    Profitability and Efficiency

    The Bank of Cyprus delivered a robust Return on Tangible Equity (ROTE) of 23.6 percent, with Net Interest Income (NII) standing at €213 million. Despite a slight decrease in NII due to Euribor rate changes and deposit costs, the bank managed to reduce its total operating expenses by 14 percent from the previous quarter, resulting in an improved cost-to-income ratio.

    Nicolaou praised the bank’s performance, noting the fifth consecutive quarter with a ROTE over 20 percent and highlighting the focus on cost discipline and asset quality.

    Balance Sheet Strength

    The bank maintains a strong balance sheet with a Non-Performing Exposure (NPE) ratio of 3.4 percent and an increased NPE coverage ratio. The retail funded deposit base remained stable, and high liquidity was demonstrated with significant placements at the European Central Bank and repayment of TLTRO funds.

    In April 2024, the Bank of Cyprus issued €300 million in Green Senior Preferred Notes, marking its first-ever green bond issuance and contributing to Cyprus’s sustainable future. This issuance also ensured compliance with the Minimum Requirement for Own Funds and Eligible Liabilities (MREL).

    Capital and Shareholder Focus

    The bank’s capital position remains robust, with CET1 and Total Capital ratios standing at 17.1 percent and 22 percent, respectively. Organic capital generation was notable in the first quarter, and tangible book value per share increased by 26 percent year-on-year.

    Nicolaou concluded by stating that the bank will review its financial targets alongside its first half of 2024 results and remains committed to executing its strategy focused on customer support, shareholder value, and assisting the development of the Cypriot economy.

    bank
    In Q1 2024, the Bank of Cyprus reported a profit after tax of €50 million, showcasing a robust financial performance amid challenging economic conditions.

    Can the Bank of Cyprus maintain its profit growth in the next quarter?

    Send a request and get a free consultation:
    November 2024
    Businesses Secure Long-Term Stability with New Lease Agreements
    The EURUSD currency pair remains in a tight range above the 1.0900 support level on Monday as it struggles for direction. Investors seek fresh cues at the start of a busy data week, which may indicate how much the Federal Reserve will cut interest rates in September.
    India Sees 22.5% Growth in Tax Collections, Boosted by Lease Revenues
    India's net direct tax collections saw a significant boost, growing by 22.5% as of August 11, compared to 19.54% the previous month. This surge was driven by a 30% rise in Personal Income Tax revenues and a 111% increase in Securities Transaction Tax receipts, despite modest corporate tax growth.
    Lawmakers Consider Alternatives as Lease Deduction Nears Expiration
    Lawmakers are evaluating alternatives to the expiring 20% deduction for qualified business income introduced by the Tax Cuts and Jobs Act. One option is corporate integration, which could address existing distortions. Businesses with a lease may also be impacted by these potential changes.
    Hellenic Bank is set to unveil its quarterly financial results on May 24, providing insights into its performance for the first part of 2024. Investors and analysts await the details with keen interest.
    Hellenic Bank Housing Loans provide flexible options for purchasing, building, or renovating a home. With competitive rates, customized repayment plans, and choices between fixed and variable interest, these loans are designed to make owning a home more accessible and manageable.

    Cyprus visa guide

    • Travel visa basics
    • Cyprus application process
    • Check visa status
    • Online visa verification
      Thanks for the apply!
      We will get back to you within 1 business day
      You can schedule a call time at your convenience now:
      In the meantime, you can get a free consultation
      with our AI-assistant