Half Year 2024 Bank of Cyprus Holdings PLC Earnings Call Transcript
Key Points
- Bank of Cyprus Holdings PLC (BKCYF) reported a strong profit after tax of EUR 270 million for the first half of 2024, with EUR 137 million in the second quarter alone.
- The company achieved a return on tangible equity (ROTE) of 23.7% for the first half of 2024, demonstrating the sustainability of its business model.
- Net interest income (NII) for the first half of 2024 stood at EUR 420 million, up 17% year-on-year, benefiting from higher rates and ample liquidity.
- The bank's cost-to-income ratio remained low at 32%, reflecting strong income and continuous focus on cost management.
- The non-performing exposure (NPE) ratio decreased to 2.8%, achieving the 2024 target early, with improved coverage of 85%.
- Consumer inflation in Cyprus continues to be impacted by energy prices, although it has come under control.
- The cost of wholesale funding increased due to the issuance of Green Senior Preferred Notes at a 5% coupon rate.
- Net interest income is expected to decline in 2025 due to projected lower interest rates and higher cost of deposits.
- The bank's hedging activities had a small cost impact on the first half NII of around EUR 10 million.
- The shift in deposit mix towards time and notice deposits is progressing more slowly than expected, potentially impacting future income.
Ladies and gentlemen, thank you for standing by. I am Mina, your Chorus Call operator. Welcome, and thank you for joining the Bank of Cyprus conference call to present and discuss the first half 2024 financial results. (Operator Instructions) and the conference is being recorded.
At this time, I would like to turn the conference over to Mr. Panicos Nicolaou, Chief Executive Officer. Mr. Nicolaou, you may now proceed.
Good morning, everyone. Thank you for joining our financial results conference call for the period ended 30 of June 2024. I am joined by Eliza Livadiotou, Executive Director of Finance; and Annita Pavlou, Manager, IR and ESG. After my introductory remarks, Eliza will go into more detail on our financial performance, and then we will be happy to take your questions both during this conference call and afterwards.
I would like to start by briefly reminding you of our powerful equity story and our cost trends on slide number 5. We are
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