Bank of Cyprus to open 11 branches in Greece

…target 190 branches by 2009

 

Bank of Cyprus Group Pcl (BOCY) announced the imminent opening of 11 branches in Greece, raising the total number of branches there to 132 and on target to increase its network in its second largest market where it operates to 190 by 2009.

BOC Group CEO Andreas Eliades said despite the intense competitive environment in the Greek market, the Group managed to lift its Return on Equity in Greece to 19.5% by the first half of 2007 from 13% a year ago.

Total advances in Greece during the first half of 2007 increased by 23% YoY to EUR 7.27 bln with a 3.7% market share of total loans in Greece and representing 41% of overall BOC Group advances that as at 30 June 2007 reached EUR 17.5 bln.

Total deposits in Greece during the first half of 2007 increased by 19% YoY to EUR 8.1 bln with a 3.7% market share by April 2007 and representing 35% of overall BOC Group deposits that as at 30 June 2007 reached EUR 22.8 bln.

Bank of Cyprus revealed that 25% of its loan portfolio in Greece is placed with large enterprises, 43% with medium-sized enterprises and 32% with private individuals. The comparable loan levels at BOC Group level are 48% with large enterprises, 16% with medium sized and 36% among private individuals.

Net interest income in the first half in Greece amounted to EUR 136 mln, up 21% YoY while total income was up 22% to EUR 171 mln compared to EUR 140 mln a year ago in the same period.

Total costs were up 18% to EUR 81 mln of which EUR 44 mln were staff costs and EUR 37 mln other costs. Core profits were up 25% at EUR 90 mln with the rate of contribution to overall Group profits at 29%, down from 31% a year ago.

Net profit for the first half of 2007 amounted to EUR 51 mln, up 83% from a year ago and representing 22% of overall total net profit of the Bank of Cyprus Group, which improved by 58% YoY to EUR 230 mln.

The Group employed a total of 2784 persons in Greece out of a total 6555 workforce. The net interest margin in Greece was 3%, the cost to income ratio at 47.6%, down from 49% a year ago but still higher than the overall Group C-I ratio of 43% for 1H07 while the ROE in Greece was 19.5%, which although better than the 13% achieved a year ago, is well below the 27.7% overall Bank of Cyprus ROE.