Financial Analysis and Currency Deposits
1H2022 - Highlights
Resilient economic
outlook
.
Strong underlying
profitability
•
Efficiency actions
completed ahead of
schedule
Robust capital and
liquidity
Mid-single digit NPE
ratio 6
.
•
•
•
6.1% GDP growth in 2Q2022; expected to grow by over 5% in 2022, outperforming wider Euro area
Strong new lending of €1.2 bn, up 30% yoy and ahead of pre-pandemic levels
4% growth in net performing loan book2 in 1H2022
Profit after tax before non-recurring items of €59 mn, up 20% yoy underpinned by higher revenue and lower impairments
Underlying ROTE of 7.3%8
.
Profit after tax of €50 mn for 1H2022 vs €1 mn for 1H2021
•
.
•
.
Cost to income ratio³ at 58% for 1H2022, broadly flat yoy
Successful completion of Voluntary Staff Exit Plan (VEP) in 3Q2022 at one-off cost of c.€99 mn
Full time employees reduced by c.16%; estimated annual saving of c.€37 mn (19%) of staff costs
Branch footprint reduced by 25% year to date
CET1 ratio of 14.2% 4,5 and Total Capital ratio of 19.3%4,5
Deposits at €18.5 bn up 4% qoq
•
Significant surplus liquidity of €6.7 bn; well positioned to benefit from further interest rate increases
.
•
NPE ratio reduced to 5.7% (2.4% 6,7 net) vs 6.5% at March 2022
Coverage at 59%6; cost of risk at 43 bps
7234
1)
Source: Cyprus Statistical Service, Ministry of Finance
2)
3)
Non-legacy loan book which includes Corporate, Large and International corporate, International business unit, Wealth and Markets, SME and Retail
Excluding special levy on deposits and other levies/contributions
4)
Allowing for IFRS 9 and temporary treatment for certain FVOCI instruments transitional arrangements
5198
5)
6)
Pro forma for HFS and the completion of VEP
Pro forma for HFS
7)
Calculated as NPEs net of provisions over net loans
8)
Calculated as Profit after Tax and before non-recurring items divided by (Shareholders' equity minus Intangible assets)
7View entire presentation