Saturday, June 13, 2015
Bank Of Cyprus turns profit and continues to turn corner
Profit after tax attributable to the owners of the bank compares with a loss of 337 million euros in the last quarter of 2014.
BoC said it had reduced emergency liquidity assistance (ELA) in Q1 by 500 million euros to 6.9 billion euros at March 31 2015, with a further reduction to 6.4 billion euros as of May 29.
"Depending on market conditions and investor appetite, the bank will assess the possibility of raising wholesale funding, with the proceeds of such funding used to reduce ELA," CEO John Patrick Hourican said in a statement.
The financial condition of the bank continues to improve. Another catalyst for this speculative position is the continued improvement in the Cypriot economy which returned to growth in the last quarter. In addition, the recent changes in legislation will allow for the unclogging of non performing loans on the banks books.
Hourican said the adoption by parliament of controversial foreclosure legislation and insolvency framework is a "significant step" in enabling the bank to tackle bad loans and improve asset quality.
I still think that Bank of Cyprus is an excellent speculation. Things are beginning to turn in the economy and at the bank itself. This stock is hated by most and yet it has the backing of well heeled knowledgeable turnaround experts like Wilbur Ross. I am adding to my position at these levels and based on this recent positive news.