Total income and profit were strong, but limited by exceptional charges. Total income of was at €152 million for the second quarter of 2021, up 11% from the previous quarter. After-tax profit was at €57 million, and operating profit at €34 million for that period, a 28% increase from the first quarter of this year, the bank said in a statement.

Operating profit for the first half of this year was at €51 million. After recognising exceptional costs, there was a loss after tax of €7 million in the second quarter of 2021 and profit after tax of €1 million for the first half of this year.

Exceptional charges included €12 million of costs relating to the Tier 2 Capital Notes tender offer and €26 million of costs relating to the sale of non-performing loans of which more than half
will be unwound over time.

The Bank’s capital position remains sound and comfortably in excess of our regulatory requirements, the statement said. As of June 30, 2021, BOC’s capital ratios (on a transitional basis) were 19.2% for the Total Capital ratio and 14.2% for Common Equity Tier 1 ratio. Following the successful refinancing of our Tier 2 Capital Notes in April 2021, we proceeded with the inaugural issuance of €300 million
senior preferred notes in June 2021.

The bank’s liquidity position also remains strong and it operates with €5.7 billion surplus liquidity and a Liquidity Coverage Ratio of 303%. Deposits on our balance sheet increased in the quarter by 3% to €16.8 billion.

Bank of Cyprus CEO Panicos Nicolaou commented: ““Strong recovery in economic activity marked the second quarter of the year, against the backdrop of increasing vaccination coverage across Cyprus and the relaxation of restrictions. Leveraging on the stronger economic environment in the quarter, our strategy is beginning to deliver results, demonstrated by the improvement in our performance before non-recurring items which nearly doubled on the prior quarter. At the same time, we further strengthened our balance sheet through the completion of Project Helix 2, and successfully accessed the markets twice in the quarter, refinancing our Tier 2 capital notes, as well as early achieving our interim regulatory Minimum Requirement for own funds and Eligible Liabilities (a form of reserves).

Source: Cyprus Mail