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(Alliance News) - Bank of Cyprus Holdings PLC on Friday said it is ready for the challenges posed by Covid-19 with its digital transformation programme going well and a strong liquidity position.
The banking and financial services group in Cyprus saw its pretax for the first half ended June 30, widen to EUR124.9 million from EUR15.7 million a year prior.
Net interest income was down to EUR167.8 million from EUR204.1 million a year ago. Turnover was down to EUR376.7 million from EUR485.6 million a year prior.
Operating expenses were reduced for the half to EUR81 million for the second quarter, down 18% year on year. This was thanks to the company's digital transformation programme which is progressing well.
Currently, 72% of the bank's customers are digitally engaged and 83% of total transactions are performed through digital channels.
The company saw non-performing exposures reduced to EUR2.6 billion, with a gross NPE ration of 22%.
Cost to income ratio was at 57% for the second quarter, broadly flat on the quarter prior.
Chief Executive Panicos Nicolaou said: "During the second quarter of the year, we generated total income of EUR143 million and a positive operating result of EUR56 million. The underlying result for the quarter was a profit of EUR4 million and the overall result a loss after tax of EUR100 million, including the loss on project Helix 2 of EUR68 million and loan credit losses of EUR21 million for potential future non-performing exposure sales."
"The results this quarter mark further progress against delivering on our strategic objectives of becoming a stronger, safer and more efficient institution, and we are now better positioned to manage the challenges resulting from the impact of the ongoing COVID-19 crisis and to support the recovery of the Cypriot economy," he added.
The company did not declare any dividends.
Going forward, Nicolaou said that the bank's capital and liquidity position remains good, sitting at EUR3.9 billion, and in excess of our regulatory requirements.
Bank of Cyprus shares were down 1.0% at 0.50 pence each on Friday afternoon in London.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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