Bank of Cyprus H1 profits up 10%, interim dividend 6 cents

Bank of Cyprus, the country's largest lender said first- half net profit rose 10 percent to EUR163 mln. Group net interest income rose to EUR496 mln, up 28 percent on the first half of 2009. The bank said it would pay shareholders a half-year dividend of 0.06 cents in cash and shares.
Profit before provisions for the first half 2010 reached EUR 328 mln recording an increase of 27% compared to the first half 2009 (EUR 259 mln). Profit after tax reached EUR 163 mln recording an annual increase of 10%.
Loans to deposits ratio was 83%.
Return on equity (13.6%) was maintained at high levels in a particularly demanding and negative environment.
The capital adequacy ratio reached 10.9% at 30 June 2010 with the tier 1 ratio and the core tier 1 ratio reaching 9.9% and 6.7% respectively. Taking into consideration the capital increase, the pro-forma capital adequacy ratio and core tier 1 ratio at 30 June 2010 will amount to 12.3% and 8.1% respectively.
The Group’s net interest margin reached 2.62% for the first half 2010, an increase of 38 basis points compared to the first half 2009 (2.24%).
The cost to income ratio has improved to 51.9% for the first half 2010 from 55.6% in the first half 2009.
At 30 June 2010 Group loans and deposits recorded an annual increase of 10% and 14% respectively, while from the beginning of 2010 the increase amounted to 5% and 14% respectively.
The non-performing loans ratio reached 6.2% at 30 June 2010 compared to 6.0% at 31 March 2010 and 5.6% at 31 December 2009. The provisions coverage ratio (provisions as % of non-performing loans) stood at 57% at 30 June 2010. The coverage ratio including tangible collateral amounted to 121% (108% taking into account tangible collateral at forced sale value).