BOC 9M profit above JP Morgan forecast

Bank of Cyprus Pcl (BOC) managed to meet and surpass the 3Q profit expectations of JP Morgan, after delivering CYP 45.15 mln in net profit against the forecast of CYP 39 mln.

In a research update, JP Morgan said the better than expected results were driven by better NII CYP94 mln vs. JPM CYP 89 mln, costs lower at CYP 60 mln vs. JPM CYP68 mln.

“Our current forecast is CYP0.29 (EUR0.50); 2007 CYP0.36 (EUR0.63) and 2008 CYP0.45 (EUR0.79). We expect 122% EPS growth in 2006, 21% in 2007 and 25% in 2008 currently,” said JPM.

Three pillars of equity story according to JPM are: Cyprus restructuring (market share in Cyprus increased to 26.3% by August vs. 25.6% in 2005), Greek growth (improving profitability and capex deceleration with maturing network delivers results) and off-shore business (Russia, Romania) continue to support earnings upgrades. Banking license in Romania and Russia expected soon.