The Bank of Cyprus Group’s profit before provisions for the third quarter 2009 reached 190 mn Euro recording an increase of 35% compared to the second quarter 2009.
According to the Group’s financial results for the nine months, which ended 30 September 2009, profit after tax for the third quarter 2009 reached 117 mn Euro recording an increase of 38% compared to the second quarter 2009.
The Group’s profit before provisions and profit after tax for the nine months 2009 totaled 446 mn Euro and 265 mn Euro, respectively.
The Group estimates that it will achieve satisfactory profitability for the year 2009 that will be in line with the estimated range already announced. Specifically, the Group’s net profit after tax for 2009 is expected to be between 300 mn Euro and 400 mn Euro.
Together with increased profitability, the Group maintained strong balance sheet footings maintaining strong capital adequacy (Core tier 1 ratio 7,9%), ample liquidity (loans to deposits ratio 87%) and satisfactory loan quality (ratio of non – performing loans at 5,2%).
The Group’s profitability continued to improve significantly in the third quarter of 2009 with profit after tax reaching 117 mn Euro compared to 85 mn Euro for the second quarter and 63 mn Euro for the first quarter, recording an increase of 38% compared to the second quarter and 85% compared to the first quarter. Profit before provisions for the third quarter 2009 reached 190 mn Euro recording an increase of 35% compared to the second quarter 2009.
Profit before provisions and profit after tax for the nine months 2009 reached 446 mn Euro and 265 mn Euro respectively compared to 481 mn Euro and 375 mn Euro for the nine months 2008 despite the adverse economic conditions and intense competition.
As a result of the Group’s actions net interest income and commissions improved further in the third quarter of 2009, reaching 289 mn Euro, and confirming the Group’s dynamic in achieving high recurring income even under adverse economic conditions.
Group’s net interest income for the third quarter 2009, which reached 228 mn Euro recording an increase of 11% compared to the second quarter 2009, is noteworthy. Net interest income for the nine months 2009 reached 616 mn Euro recording an annual increase of 7%.
The significant recovery of the Group’s net interest margin continued in the third quarter 2009, with the ratio improving by 19 basis points. The net interest margin reached 2.55% compared to 2.36% for the second quarter and 2.13% for the first quarter 2009. The recovery of the net interest margin of the Group’s operations in Cyprus and Greece resulted in an increase of net interest income of 13% on a quarterly basis for the third quarter 2009 in these countries.
The Group maintains its strong liquidity with a loans to deposits ratio of 87%. It enjoys strong liquidity in the two main geographic markets in which it operates, with loans to deposits ratios in Cyprus and Greece of 80% and 86% respectively at 30 September 2009.
