Bank of Cyprus Credit Ratings and Financial Position
Income Statement
1Q2023
1Q2022
4Q2022
€ mn
qoq%
yoy%
IFSR 17
IFRS 17
Net Interest Income
162
71
136
19%
127%
Non interest income
72
66
79
-11%
8%
Total income
234
137
215
8%
70%
Total operating expenses¹
(80)
(81)
(84)
-5%
-3%
Operating profit
143
46
120
19%
213%
Provisions and impairments
(28)
(17)
(32)
-10%
68%
PAT before non-recurring items
96
23
74
28%
Advisory and organic restructuring
(1)
(1)
(1)
-22%
-15%
costs
PAT-organic²
95
22
73
29%
Restructuring costs - VEP
-
(3)
Other exceptionals
0
(2)
2
-109%
-100%
-92%
95
17
75
26%
Profit after tax
Key Ratios
Net Interest margin
2.91%
Cost to income ratio¹
34%
Cost of Risk
0.44%
1.32%
60%
0.44%
2.36%
39%
0.42%
55 bps 159 bps
-5 p.p.
2 bps
•
-26 p.p.
QoQ Performance (1Q2023 vs 4Q2022)
•
NII up 19% supported by interest rate rises and resilient low
deposit pass-through
Non-NII down 11% reflecting mainly the termination of liquidity fees
and NPE sale-related servicing fees
Total operating expenses¹ down 5% as seasonally lower other
operating expenses partially offset higher staff costs
Provisions and impairments down by €4 mn (-10%) mainly due to
lower REMU6 stock impairments on prior quarter
Cost of risk broadly flat reflecting resilient credit portfolio quality
Profit after tax, up 26%
YoY Performance (1Q2023 vs 1Q2022)
.
NII up 127% underpinned by interest rate rises and resilient low
deposit pass-through
Total operating expenses¹ down 3% reflecting benefits from
efficiency actions partly offset by wage and inflationary pressures
Provisions and impairments up by €11 mn (68%) driven by higher
REMU6 stock impairments
EPS (€ cent)
21.24
3.86
16.84
4.40
17.38
•
Cost of risk flat reflecting resilient credit portfolio quality
ROTE³
21.3%
4.0%
17.3%
4.0 p.p. 17.3 p.p.
•
Profit after tax at €95 mn
Adjusted recurring profitability4,5
89
17
68
31%
•
Reported ROTE³ at 21.3%
723
1)
Excluding special levy on deposits and other levies/contributions
2)
Used for organic capital generation calculation (refer to slide 23)
3)
ROTE is calculated as annualised profit after tax (attributed to the owners of the Company) divided by the
quarterly average shareholders' equity minus intangible assets
456
4)
Used for the payout ratio calculation, in line with the Dividend Policy approved by the BoD in April 2023
5)
6)
Profit after tax before non-recurring items (attributable to the owners of the Company) taking into consideration the AT1 coupon
Real Estate Management Unit
•
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