Bank of Cyprus Holdings announced a substantial increase in first-half pretax profit, driven by higher income from interest rates. The company reported a pretax profit of 260.9 million euros ($285.9 million) for the six months ended June 30, compared to 54.0 million euros for the same period last year.
Strong Financial Performance
During this period, Bank of Cyprus Holdings experienced a surge in turnover, which rose from 415.0 million euros to 646.2 million euros. Net interest income also saw a significant boost, increasing from 145.7 million euros to 358.3 million euros. This improvement can be attributed to higher interest rates and low deposit pass-through.
Demonstrating Balance-Sheet Strength
Bank of Cyprus Holdings showcased its robust balance-sheet strength during this period. The common equity Tier 1 ratio stood at 16.0%, compared to 15.2% at the end of the previous year. Furthermore, the bank's return on tangible equity for the first half of the year was 24.0%, or 4.9% under the IFRS 17 accounting standard.
Progress Towards Future Goals
Chief Executive Panicos Nicolaou expressed confidence in the bank's performance, stating that they are well on track to achieve their 2023 targets. The bank aims for a return on tangible equity of over 17%.