18th Nov 2022 11:38
(Alliance News) - Bank of Cyprus Holdings PLC on Friday said it completed a sale of a portfolio of loans, a transaction it called Project Helix 3.
Earlier on Friday, the Nicosia-based lender published its third-quarter results, posting a rise in profit and income rise.
The sale to funds managed by Pacific Investment Management Co LLC has a gross book value of EUR555 million, out of which EUR551 million relate to non-performing exposures and real estate properties with a book value of EUR88 million.
Earlier on Friday, the Nicosia-based lender released its third quarter results, reporting a reduced pro-forma non-performing exposure ratio, which fell to 4.5% at September 30 from 5.7% at the end of June and from 8.6% at September 30, 2021.
Bank of Cyprus received EUR350 million in cash upon completion of Project Helix 3.
Further regarding its results, the bank said total income rose in the third quarter, as net interest margin improved.
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%.
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 rose 8.5% to 136.95 pence each on Friday morning in London.
By Tom Budszus; [email protected]
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