RCB Bank posts net profit of Euros 97 million in 2017

RCB posted net profit of Euros 97.2 billion profit in 2017 marking an increase of 19% compared with 2016 and continuing its consistent profidability for the past five years.

The bank said in a statement that the main driver behind the growth in profits was the increase of non-interest income from Euros 23.4 million in 2016 to Euros 35.6 million Euros in 2017, the extension of the domestic market operations in Cyprus together with the improvement in the overall operational efficiency.

In line with its strategy to expand in the local market, the bank launched two new branches in Pafos and Larnaca during 2017, while it demonstrated an in increase of 41% in its local client base and a remarkable growth in the volume of deposits and lending that the Bank disbursed to Cypriot businesses.

Furthermore, RCB demonstrated the highest capital position compared with other Cypriot banks supervised by the ECB with the Common Equity Tier 1 ratio amounting to 20.1% in 2017 and the Capital Adequacy Ratio reaching 21.2%.

The operational efficiency together with the conservative and effective management of the credit risks allowed to build up a solid capital base and the necessary reserves while remaining profitable, the bank added.

According to the RCB report for 2017, the bank’s non-performing loans amounted to just 0.2% of its total loan book, down from 0.8% in 2016.

For the 2018 the bank said it aims to strengthen and extend its domestic business operations with Cypriot individual and corporate clients being the Bank’s key growth driver for the past three years.

To mitigate increased risks associated with cross-border international financial operations, the bank said it has been consistently enhancing its anti-money laundering and compliance procedures as well as strengthening its client on-boarding and monitoring policies.

This process is to continue in 2018 and might lead to a significant reduction in operations with international clients of the Bank, RCB said.

The bank’s total loans amounted to Euros 6.88 billion in 2017 from Euros 7.14 bln in 2016.

Administration and operational expenses declined to Euros 101 million in end-2017 from Euros 142 in 2016.

Net interest income in 2017 declined to Euros 218.4 million compared to Euros 228 in 2016.

Impairment charge in 2017 increased to Euros 39.3 million from Euros 11.6 in 2016.

Customer deposits increased to Euros 3.0 billion from Euros 2.73 billion in 2016. Deposits from banks accelerated to Euros 5.33 billion from Euros 5.17 billion in 2016, while the bank’s cash and balances with Central Banks amounted to Euros 2 billion from Euros 1.0 billion in 2016.

The bank has all the necessary financial reserves and capital to facilitate its further business development in Cyprus, RCB added.

Source: Cyprus News Agency