Releasing its audited financial results for 2015, the bank said it posted profits despite recognising additional provisions of €71m, recommended by the regulatory authorities.

“Auditors confirm that the profits attributable to shareholders of the parent company amount to €12,1m compared to losses of €118,6m in 2014,” the bank said.

Despite recognising elevated provisions, the bank enjoys “an enhanced capital base which more than covers the additional requirements of the SSM, while at the same time it enjoys a safety margin in its Common Equity Tier 1 ratio (CET1) which amounted to 14.8%.”

The Group’s Capital Adequacy Ratio stood at 18.1% and its Tier 1 Ratio at 17.7%, the bank added.

On December 31st, non performing exposures dropped to 59% compared to 61% in the third quarter of 2015 and “constitute the first substantial reduction realised since the 2013 crisis.”

During 2015 the coverage ratio of non-performing exposures aligned with the EU’s average, increasing from 46% to 50%.

Loan restructuring picked up in the second half of 2015, totalling €758m for the year.

With a net loan to deposits ratio at 50%, the bank supported the real economy by approving new loans of €377m to creditworthy companies and households.

At December 31st 2015, total gross loans to clients amounted to €4.4 billion while deposits stood at €6.1 billion.

As per the audited financial results, net interest income up by 6% (€37.1m) in the fourth quarter of 2015 compared to the third quarter (€34.9m). The Group’s non-interest income has increased significantly reaching €43.1m compared to €22.4 m in the third quarter of 2015.

The Group’s administrative and other expenses increased by 4% in the fourth quarter of 2015, mainly due to the ex-gratia payments of €3.1m to staff members who opted to take the Special Early Retirement Scheme.

Source: Famagusta Gazette