Laiki 3Q profits seen up by 78%

Laiki Bank, reporting its results on Friday, is seen lifting nine month profits by 77.5% year-on-year to an average of CYP 28.4 mln compared to CYP 16 mln in the same period a year ago, according to a Financial Mirror poll.

The poll was conducted among the three leading forecasting financial services firms that have the best track record of profit estimates.

Christos Hadjichristodoulou, Head of Research at CLR, expects Laiki to lift nine-month profits to CYP 28 mln, of which CYP 2 mln are seen to be equity related.

Constantinos Constantinides of Egnatia Financial Services sees net profits at CYP 29.2 mln in the first nine month period, while Andreas Constantinou of SFS Group is forecasting CYP 28 mln in net profits.

As usual, the level of provisions for doubtful debt is one of the areas which cannot be predicted using rational forecasting tools, but all analysts surveyed by the Financial Mirror expect Laiki to continue pressing its provisions lower.

Analysts also agree that one of the main components boosting profits higher is the satisfactory increase in net interest income as well as a successful effort to contain costs.

In the event that the analysts’ forecasts are correct, then Laiki’s first nine month profits will surpass the total profit of CYP 21.1 mln reported for the whole of 2004, while the percentage gain of 77.5% will exceed the 65% increase in nine month profit reported by BOC, which raised profits from CYP 30.4 mln to CYP 50.39 mln.

Laiki will brief analysts on Friday afternoon immediately following the board meeting called to approve the first nine month results, where more details will hopefully emerge regarding the forthcoming rights issue as well as the announcement that the Group has acquired a controlling stake in the Belgrade-based Centrobanka.