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Bank of Cyprus Holdings PLC - Nicosia-based lender - Pretax profit multiplies to €62.3 million in the first half of 2022 from just €2.1 million a year before. Net interest income slips 4.3% to €145.7 million from €152.2 million, but total turnover rises by 6.2% to €415.0 million from €390.6 million and total operating income by 9.5% to €299.5 million from €273.4 million. Underlying return on tangible equity is 7.3%, and this is expected to exceed 10% in 2023.
The bank says it was helped by economic growth in Cyprus that outpaced the wider eurozone. Bank of Cyprus says it extended €1.2 billion in new loans in the recent six months, up 30% on a year before and ahead of pre-pandemic levels. At the same time, non-performing exposure ratio is reduced to 5.7% on June 30 from 6.5% on March 31, nearing its NPE ratio goal of 5%. CET1 ratio is 14.2%.
Bank of Cyprus says it expects to return to dividend payments in 2023.
‘2022 is expected to be a transitional year for Bank of Cyprus, marking the final restructuring actions to transform the Group into a strong, stable and profitable organisation for banking and broader financial products and services in Cyprus,’ says Chief Executive Panicos Nicolaou, adding: ‘Our progress is being noticed.’
Earlier this month, the bank said it had rejected three non-binding takeover proposals from an arm of US private equity firm Lone Star Funds, saying they undervalued the lender and failed to consider its significance to Cyprus.
Current stock price: 105.50 pence, up 2.9% in London on Wednesday
12-month change: up 10%
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