(Alliance News) - Bank of Cyprus Holdings PLC on Friday said total income rose in the third quarter, as net interest margin improved and non-performing loan exposure was reduced.
Profit before tax and non-recurring items multiplied to EUR59 million in the three months that ended September 30 from EUR15 million a year before and rose 51% from EUR39 million in the second quarter.
Total income was EUR172 million, up from EUR139 million a year ago and EUR153 million in the second quarter.
Net interest income grew 25% to EUR89 million from EUR74 million in the second quarter, as annualised net interest margin improved to 1.53% from 1.33%.
The Nicosia-based lender's pro-forma non-performing exposure ratio fell to 4.5% at September 30 from 5.7% at the end of June and from 8.6% at September 30, 2021.
For the nine months to September 30, the bank said profit before tax and non-recurring items was EUR131 million, up from EUR67 million a year before. Total income was EUR471 million, up from EUR427 million a year before.
Further, it reported a Common Equity Tier 1 ratio of 14.7%, down from 15.3% a year before and from 15.1% at the end of 2021.
"We reported a strong performance in the third quarter of 2022, delivering tangible results against our strategic targets, and confirming the sustainability of our business model with well-diversified revenues and tight cost control," the bank said.
Looking ahead, Bank of Cyprus said it revised its cost of risk for 2022 to be around mid-40 basis points, with the cost of risk target of 50 to 80 basis points for 2023 remaining unchanged due to ongoing macroeconomic uncertainty.
Bank of Cyprus shares were 5.0% higher at 132.50 pence each in London on Friday morning.
By Tom Budszus; tombudszus@alliancenews.com
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Bk. Cyprus Hldg (BOCH)