Group Financial Results H1 2016
Income Statement Review
€ mn
Total income
Total expenses
Profit before provisions and impairments¹
Provisions for impairment of customer loans net of
gains/(losses) on loan derecognition and changes in
expected cash flows
(158)
(234)
-33%
(96)
(62)
53%
•
Impairments of other financial and non financial assets
(22)
(31)
-31%
(14)
(8)
71%
Share of profit from associates and joint ventures
2
3
-53%
1
1
1%
•
Profit before tax, restructuring costs, discontinued
operations and net profit on disposal of non-core
asset
102
79
29%
26
76
-65%
Tax
(Loss)/profit attributable to non-controlling interests
(12)
(10)
17%
(4)
(8)
(6)
1
(5)
81
-49%
(1)
1H2016 1H20152
yoy %
2Q2016 1Q2016
qoq %
482
535
-10%
238
244
-3%
(202)
(194)
4%
(103)
(99)
5%
280
341
-18%
135
145
-7%
Profit after tax and before restructuring costs,
discontinued operations and net profit on disposal
of non-core asset
84
70
20%
17
67
-75%
Advisory, VEP and other restructuring costs³
(87)
(22)
302%
(70)
(17)
301%
Loss from disposal groups held for sale/discontinued
operations
0
(29)
-100%
0
0
Net gain on disposal of non-core assets
59
41
45%
59
0
Profit after tax
56
60
-6%
6
50
Net interest margin
3,59%
3,88%
-29 bps
3,55%
3,63%
-8 bps
Return on average assets (annualised)
0,5%
0,5%
0,1%
0,9%
-0,8 p.p
•
Return on tangible equity (annualised)
3,8%
3,6%
+0,2 p.p
0,8%
6,7%
-5,9 p.p
-88%
•
•
Key Highlights QoQ change
Total Income down by 3%
qoq driven by reduction in
customer loan balance
primarily due to elevated
loan restructuring activity
NIM maintained at 3,59%
for 1H2016
Total Expenses up by 5%
qoq
due
operating
to increased
expenses
compared with 1Q2016
attributed to lower provision
charge for litigation in
1Q2016 following legal
settlements
Cost to Income ratio at
42% for 1H2016
Profit before provisions
of €135 mn for 2Q2016
directed at increased
provisions and impairment
charges to faster de-risk
balance sheet
Profit after tax of €6 mn
for 2Q2016
Cost-to-Income ratio
42%
36%
+6 p.p
43%
40%
+3 p.p
(1)
i (2)
(3)
Profit before provisions and impairments, gains/(losses) on derecognition and changes on expected cash flows, restructuring costs and discontinued operations.
See Note 2.32 to the Interim Consolidated Financial Statements for the six months ended 30 June 2016, Comparative information.
Advisory, VEP and other restructuring costs comprise mainly: 1) fees of external advisors in relation to: (i) disposal of operations (ii) customer loan restructuring activities which are not part of the
effective interest rate and (iii) the contemplated listing on the London stock exchange and 2) voluntary exit plan cost.
Bank of Cyprus
KOINO
KYMPI
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