The Bank of Cyprus (BoC) on Thursday announced a profit after tax of €270 million for the first six months of 2024, marking a 23 per cent increase compared to the same period in 2023.  “We are pleased to announce that we delivered another quarter of strong profitability, demonstrating the sustainability of our business model,” said group CEO Panicos Nicolaou.  “For the sixth consecutive quarter, we achieved a ROTE of over 20 per cent, comfortably exceeding our 2024 targets set in February 2024,” he added.  Nicolaou also said that “this strong performance was the outcome of resilient net interest income evolution, continued cost discipline amid inflationary pressures and a low cost of risk”.  “Overall, we recorded earnings per share of €0.61 during the first half, delivering strong shareholder value creation, with tangible book value per share improving by 21 per cent year on year to €5.27,” he stated.  Specifically, according to the bank’s results for the first half of 2024, the Bank of Cyprus achieved a return on tangible equity (ROTE) of 23.7 per cent.  Net interest income (NII) rose to €420m, up 17 per cent year-on-year, although the second-quarter NII experienced a slight decrease of 3 per cent quarter-on-quarter due to increased hedging activity.  Total operating expenses stood at €167m, a 4 per cent year-on-year increase, primarily driven by inflation, while the cost-to-income ratio improved by 2 percentage points to 30 per cent.  “Capitalising on this strong performance, and on the back of a supportive macroeconomic environment we are upgrading today our 2024 and 2025 financial targets,” Nicolaou said.  “We now expect that reported ROTE will exceed 19 per cent for 2024, and be mid-teens in 2025, facilitating strong CET1 generation of over 300 bps per annum before distributions,” he added.  In its report, the bank highlighted that Cyprus’ economy continues to outpace the Euro area, with GDP projected to grow by approximately 2.9 per cent in 2024.  The Bank of Cyprus, the report continued, has leveraged this growth, achieving strong new lending of €1.2 billion, an increase of 10 per cent year-on-year.  In addition, the gross performing loan book also grew to €10.1bn, a 3 per cent rise since December 2023.  “The Cypriot economy continues to display strength and resilience against the backdrop of geopolitical uncertainty,” Nicolaou pointed out.  Moreover, the results also showed that the Bank of Cyprus maintains a highly liquid and resilient balance sheet.  The non-performing exposure (NPE) ratio decreased to 2.8 per cent, with a net basis of just 0.4 per cent, showing a significant reduction of 60 basis points quarter-on-quarter.  “Our capital position remains robust,” Nicolaou said, while also noting that the bank’s “asset quality is healthy and continues to improve with the NPE ratio falling below 3 per cent for the first time”.  NPE coverage stands at 85 per cent, with a cost of risk at 31 basis points. The retail-funded deposit base grew by 3 per cent year-on-year and 2 per cent quarter-on-quarter to €19.7bn.  The bank’s liquidity remains strong, with €7.3bn placed with the European Central Bank (ECB) and the Targeted Longer-Term Refinancing Operations (TLTRO) fully repaid in June 2024.  Furthermore, the successful issuance of €300m in Green Senior Preferred Notes in April 2024 ensured compliance with the final Minimum Requirement for Own Funds and Eligible Liabilities (MREL) target for 2024.  During the applicable period, the Bank of Cyprus’ Common Equity Tier 1 (CET1) ratio stood at 18.3 per cent, combined with a Total Capital ratio of 23.3 per cent.  In addition, CET1 generation stood at 214 basis points, with 129 basis points generated in the second quarter alone. The tangible book value per share increased by 21 per cent year-on-year to €5.27 as of 30 June 2024.  The bank also provided an attractive distribution yield of 8 per cent, paying out €112m in cash dividends in June 2024 and launching a €25m share buyback in April 2024.   (ICE BEIRUT)

Fonte notizia: Cyprus Mail