Cyprus banking system posted Q3 losses

The Cyprus banking system reported after-tax losses of €36 million on a consolidated basis in the first nine months, from a profit of €22.54 million in the same period last year due to retirement schemes.

According to the aggregated data for the Cyprus banking sector as of 30 September, published by the Central Bank, total net operating profit stood at €916.3 million in the first nine months, from €939.5 million in 2021.

In addition, banks’ interest income remained roughly unchanged at €831 million compared to €838 million last year.

The stable trend in interest income reflects the ECB’s base rate increase, which offset the continued deleveraging of loans in the banking system.

Total administrative expenses increased significantly from January to September, reaching €689.5 million from €619 million.

Personnel expenses showed a significant 20% increase, reaching €467.5 million compared to €388 million in the first nine months of 2021, reflecting the costs of the voluntary exit plans implemented at the Bank of Cyprus and Hellenic.

The aggregated results include Ancoria Bank, Astrobank, Bank of Cyprus, CDB, Hellenic Bank and the Housing Finance Corporation.

Third largest bank, RCB, terminated its banking operations following a decision by the European Central Bank on 24 February following Russia’s invasion of Ukraine.