Cooperative Cyprus Bank records losses of Euros 63.3 million in first nine months of 2017

The Cooperative Cyprus Bank (CCB) has announced an after tax loss of Euros 63.3 million for the first nine months of this year, after results of non continuing activities are taken into account, compared to a profit of Euros 53.9 million at the same period of last year.

The loss, according to the CCB, is due to increased provisions for the impairment of loans and other facilities of the order of Euros 149.5 million while at the same time there was an increase of the loan portfolio coverage ratios. The bank underlines that the results “reflect the significant progress observed in its strategy for building a strong bank which will be in a position to support the Cypriot economys growth.”

Total Capital, Tier 1 Capital and Common Equity Tier 1 Capital as of September 2017 were 15.23% recording a small drop compared to the previous quarter (15.52%).

Total restructurings for the first nine months of 2017 were at Euros 526.4 million compared to Euros 975 million at the same period of 2016.

Non performing facilities fell by Euros 500.9 million in the first nine months of 2017 and were on September 30, 2017 Euros 6,715.9 million. On December 31, 2016 they were Euros 7.216.8 million.

The coverage ratio for non performing facilities was on September 30, 45.29% compared to 47.10% in June 2017 and 45.34% in December 2016.

The third quarter of 2017 constituted a landmark for the bank since the legal merger of the Cooperative Credit Sector was completed, the Bank’s General Manager Nicholas Hadjiyiannis said in a statement, recalling that the process started four years ago with 93 independent cooperative credit institutions.

As a result of the merger process, he continued, the Cooperative Cyprus Bank was established with a balance sheet of Euros 13.5 billion, maintaining its historic size and its importance for the country’s economy and society, adding that it now constitutes the biggest retail bank in Cyprus.

Hadjiyiannis spoke of the importance of an agreement to establish an independent company for managing non-performing loans with Spanish company Altamira and the choice of Citi as the exclusive coordinator on an international level ahead of the bank’s capital increase.

The nine-month results show a significant reduction of NPLs by Euros 501 million (7%) and the creation of new provisions of Euros 150 million, thus strengthening our balance sheet, he noted.

Source: Cyprus News Agency