Eurobank Cyprus stays on profit course 

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Eurobank Cyprus remained on a course of profitability in 2020, despite a 10% drop in after-tax earnings to €40.1 mln from the previous year, due mainly to the impact of the Covid-19 pandemic.

Announcing its financial results for the past year, the wholly-owned subsidiary of Athex-listed Eurobank Group said after-tax profits were €40.1 mln from €44.5 mln in 2019, with pre-tax earnings at €52.4 mln in 2020 from €59.0 mln in 2019.

The bank said in an announcement that it maintained a strong capital position with its Capital Adequacy Ratio and CET1 ratio at 26.2%.

This is based on strong surplus liquidity with deposits of €5.48 bln (2019: €5.55 bln) with the loans-to-deposits ratio of 33%, excluding deposit-secured lending.

Capital and other reserves increased from €494 mln in 2019 to €527 mln last year.

The bank also said that it maintains a healthy loan book, rising from €2.097 bln in 2019 to €2.20 bln in 2020, with the EBA-defined non-performing loans at a ‘remarkably low’ 3.2%.

The Cyprus bank also seems to enjoy a lean operation with the cost-to-revenues ratio at 37%.

“From the outset of the crisis we implemented a plan of business continuity with the aim of serving and supporting our customers,” said Eurobank.

The bank said it is on a path of technological upgrade transforming itself into a customer-centric corporation providing innovative digital products and services, a process that will continue this year.

The financial results of the Cyprus bank appear inline or significantly better than the parent Holdings company, whose consolidated balance sheet saw an after-tax loss of €1.21 bln last year, compared to a profit of €127 mln in 2019, due mainly to a write-down of assets and the sale of portfolios, mainly outside Greece.