BOC hits EUR 3.42 in Greece

Bank of Cyprus shares trading in Greece touched an all-time high last reached in August 9 at EUR 3.42 or CYP 1.96, bucking the declining trend on the Greek main market and ahead of the release of the first half results on Friday.

BOC shares rallied 1.8% on Tuesday in Greece on 788.000 shares volume for a value of EUR 2.6 mln, bucking the 1.15% decline of the ASE All-Share index, which ended at 3277.89 points.

In Cyprus, the Bank’s shares ended moderately higher at CYP 1.93, just under the all-time high of CYP 1.95 reached earlier in the year. Analysts said the positive run is related to expectations for a sharp increase in first half profits, more than what the Greek banks are expected to report for their first half performance.

According to a poll conducted by the Financial Mirror among Cyprus’ leading analysts, CLR, SFS and Egnatia, the Bank is seen lifting its first half profits ended 30 June 2005 by 80% year-on-year to CYP 29.3 mln from CYP 16.2 mln in the first half of 2004.

The forecasted increase is significantly above the 49% y/y growth in profits recorded during the first quarter of the year, when BOC reported net profits of CYP 16 mln and lifted its return on equity (ROE) from 6.9% to 11.3% and close to its target of 13% by 2007.