Bank of Cyprus to review 2024 full-year targets after strong Q1, CEO says

Bank of Cyprus Holdings

20/05/2024 13:14

NICOSIA, May 20 (Reuters) - Bank of Cyprus  BOCH.CY 
will be reviewing its 2024 profit targets following a strong
start to the year reflected in first-quarter earnings, its CEO
said in an interview.
    The bank last week posted a 39% year-on-year rise in first
quarter pre-tax profit to 159 million euros ($172.71 million)
and a 31% increase in net interest income to 213 million euros. 
    "Based on the results of (the first quarter), we are
tracking ahead of our 2024 targets and we are planning to review
these targets with our half-year results," Panicos Nicolaou
said.
    The bank, which holds a 43% market share in loans and 37% in
deposits, gave in February a full-year net interest income
target in excess of 670 million euros.
    "The bank can provide sustainable profitability even with
normalised rates," Nicolaou said.
    The bank, founded in 1899, anticipates growth in its loan
book in line with the expansion of the Cypriot economy, which,
at a forecast 2.9% in 2024, is expected to outpace the euro zone
average. 
    It also sees average organic growth of 6-8% per year in
insurance gross written premiums, and expects its new Jinius
project, a technology platform offering business-to-business and
business-to-consumer services, to provide a new stream of
revenue, Nicolaou said.
    In April the bank successfully raised 300 million euros in a
 green bond, the first by a Cypriot lender in an issue more than
four times oversubscribed. 
    Nicolaou and Eliza Livadiotou, the bank's Executive Director
Finance, said Bank of Cyprus had already conducted climate risk
assessments on the island, where weather extremes from forest
fires and extended heatwaves to flash floods are getting more
common.
    "We have now mapped and traced the risks and we are trying
to embed them in our underwriting processes and in pricing,"
said Livadiotou. 
    Nicolaou added: "We are being proactive now, to end up with
a portfolio quality which is more robust and better prepared to
deal with climate risks."
    ($1 = 0.9206 euros)

 (Reporting by Michele Kambas; Editing by Jan Harvey)
 ((michele.kambas@thomsonreuters.com;))