Thursday, October 27, 2016

Bank of Cyprus recovery well on track

Famagusta:

Bank of Cyprus (BOC), the eastern Mediterranean island's systemic lender that was at the center of a cataclysmic banking resolution at the start of the 2013 near melt down of the economy, has come out of the crisis strong and is expanding, CEO John Hourican told an annual general meeting of shareholders on Tuesday.

As an indication of the bank's strong position, Hourican said the bank will be able to repay in full an 11.4-billion-euro(12.41 billion U.S. dollars) Emergency Liquidity Assistance debt to the European Central Bank early next year. 

Bank of Cyprus (BOC), the eastern Mediterranean island's systemic lender that was at the center of a cataclysmic banking resolution at the start of the 2013 near melt down of the economy, has come out of the crisis strong and is expanding, CEO John Hourican told an annual general meeting of shareholders on Tuesday.

(snip)

As an indication of the bank's strong position, Hourican said the bank will be able to repay in full an 11.4-billion-euro(12.41 billion U.S. dollars) Emergency Liquidity Assistance debt to the European Central Bank early next year. 
(snip)
Hourican said BOC was responsible for approximately two thirds of the reduction of non-performing loans of the whole banking system though having only a 40 percent share of the lending.

Non-performing loans stood at over 50 percent of the total loan portfolio of all banks at the height of the crisis and Hourican said it will be with the banking system for a long time to come.

Concerning BOC's own non-performing loans, Hourican said they fell by 18 percent or 2 billion euros during the first six months of 2016.

Bank of Cyprus is definitely on the way to recovery as is the whole Cypriot economy. The price of the bank has actually declined as the business has gotten better. I think the listing of the shares in London along with continued improvement in the bank's operating metrics will lead to a substantial revaluation.

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