Citi and DB lift Bank of Cyprus forecast

Citigroup and Deutsche Bank have upped their profit forecasts for Bank of Cyprus Group after the Bank beat market expectations, delivering a 58% increase in first half profit to EUR 230 mln, well above the EUR 217 mln median forecast of analysts polled by the Financial Mirror.

DB says in a fresh update on the stock that BOC managed to beat estimates by 12% on the back of a sharp increase in income, mainly from higher interest margin and lower provisions.

DB has revised its profit forecast for 2007 by 4% higher to EUR 484 mln from EUR 466 mln forecast earlier. DB expects Bank of Cyprus to deliver profit of EUR 604 mln in 2008 and EUR 757 mln in 2009.

Earnings per share are seen higher at EUR 0.87 in 2007, EUR 1.08 in 2008 and EUR 1.35 in 2009. Net interest income is seen by DB climbing to EUR 781 mln in 2007, EUR 970 mln in 2008 and EUR 1.2 bln in 2009.

DB is maintaining its EUR 17 per share target on Bank of Cyprus.

 

Citigroup forecast

Citigroup has also characterized the Bank of Cyprus results as exceptionally strong. Citi forecasts Bank of Cyprus profit for 2007 climbing to EUR 481 mln, EUR 606 mln in 2008 and EUR 719 mln in 2009. Citigroup is also maintaining its price target of EUR 17 per share on the stock with a “buy” recommendation.

Keefe, Bruyette & Woods Ltd (KBW) proceeded to revise its price target on Bank of Cyprus to EUR 16 per share from EUR 14.5 previously raising its 2007 profit forecast to EUR 466 mln and EUR 607 mln for 2008. KBW sees the EPS of Bank of Cyprus climbing to EUR 0.84 in 2007 and EUR 1.08 in 2008.