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Bank of Cyprus reports 55 percent rise in 2007 net profit

Bank of Cyprus reports 55 percent rise in 2007 net profit

Bank of Cyprus PCL on Wednesday reported a 55 percent rise in 2007 net profit on the back of strong loan growth and lower provisions.
For the 12 months to Dec. 31, the company said net profit was euro485 million (US$730 million), against euro313 million the same period a year earlier.
Net interest income rose 23 percent to euro752 million (US$1.13 billion), up from euro613 million for the same period a year earlier, and on the back of a 31 percent increase in loans to euro19.5 billion ($29.3 billion).
"The financial results of 2007 reflect the dynamic course of the group and make us aim even higher," said group CEO Andreas Eliades. "We aim to double the size of the bank by 2010, with euro40 billion (US$60 billion) deposits and advances, 500 branches internationally and total profit for the three-year period which will exceed euro2 billion (US$3 billion)."
The company reported lower provisions for non-performing loans, down 44 percent to euro56 million (US$84.2 million) in the 12 months, from euro99 million at the end of 2006.
The ratio of non-performing loans fell to 3.8 percent at the end of last year from 5.6 percent at the end of 2006.
In the past two years, Bank of Cyprus has started generating new business by expanding its retail lending, both in Greece and in Cyprus, and has recently stepped up its operations in eastern Europe.
As a result of its strong earnings, the bank declared a final dividend of euro0.25 (US$0.38) a share and forecast 2008 net profit of euro540 million ($812.4 million). For 2009 and 2010, the bank said it forecasts annual net profit growth of more than 25 percent.
Bank of Cyprus shares closed up euro0.08 ($0.12), or 0.9 percent, at euro9.40 ($14.14) in an otherwise lower market Wednesday.


Updated : 2021-05-11 20:31 GMT+08:00