Bank of Cyprus records losses of Euros 37 million in first 9 months of 2018

Bank of Cyprus has recorded losses of Euros 37 million in first 9 months of 2018 compared to losses of Euros 554 million at the same period of 2017. The bank’s organic profitability was affected negatively from the loss of the sale non-performing exposures (NPEs) of Euros 2.7 billion (Helix project).

The bank recorded profits of Euros 17 million for the third quarter of this year.

The sale of the NPEs portfolio resulted in the greatest reduction of total provisions to Euros 150 million compared to Euros 836 million at the same period of last year. Provisions for the impairment of loans reached Euros 128 million compared to Euros 730 million at the same period of last year.

During the third quarter of this year the bank continued the organic reduction of NPEs by 4% on a quarterly basis or Euros 293 million. NPEs amount to 47% of the total loan portfolio of the bank, while after the Helix project they would drop down to 37% of total loans.

Helix is an important step forward in repairing our balance sheet and stabilising our capital position. We expect execution in the first quarter of 2019, upon receipt of regulatory approval from the ECB, the bank’s CEO John Patrick Hourican says in a statement.

This portfolio sale, he adds, complements our organic non-performing exposure (NPE) reduction. During the third quarter, we reduced NPEs by Euros 224 mn.

This is our fourteenth consecutive quarter of meaningful reductions in NPEs and is in line with our post-Helix guidance. NPEs reduced to Euros 7.6 bn (Euros 5.0 bn pro forma for Helix), he notes.

We have a clear strategy for continuing the improvement in the asset quality position of the bank and further deal with the residual c.Euros 5 bn of non-performing loans. We remain as focused as ever on continuing to seek solutions, both organic and inorganic, to make the bank a stronger, safer, Cyprus-focused institution, capable of supporting the local economy, Hourican points out in his statement.

Source: Cyprus News Agency