Bank of Cyprus (Results Q4/12M 2014): Bank of Cyprus announced its 12M results posting a net loss of €256m (4Q €332m) on increased provisions for exposure to Russia. In specifics:
¡ Net interest income (NII) for the year ended 31 December 2014 was €967 mn, while the net interest margin (NIM) was 3,94%. NII for the fourth quarter of 2014 declined to €225 mn, compared to €231 mn for the third quarter of 2014, mainly due to deleveraging actions. The NIM for the fourth quarter of 2014 was 3,81% compared to 3,82% for the third quarter of 2014.
¡ Total income in 12M was €1.177 mn. Total income for the fourth quarter of 2014 was €287 mn, compared to €263 mn for the third quarter of 2014.
¡ Provisions for impairment of customer loans for the year were €666 mn (continuing operations), with the provisioning charge accounting for 3,5% of gross loans. Provisions for impairment of customer loans for the fourth quarter of 2014 were €248 mn (continuing operations), compared to €115 mn for the third quarter of 2014, with the increase in provisions relating to the methodological alignment and changes in certain estimates, following the completion of the review of the AQR results.
¡ The Common Equity Tier 1 totalled 14,0% at 31 December 2014 (compared to 15,4% at 30 September 2014), primarily affected by increased provisioning charges for the fourth quarter of 2014.
¡ Gross loans and deposits were €23,8 bn and €13,2 bn respectively, with the net loans to deposits ratio improving to 142% from 148% at 30 September 2014. Emergency Liquidity Assistance (ELA) has been further reduced to €7,4 bn at 31 December 2014 (compared to €9,6 bn at 31 December 2013 and a high of €11,4 bn in April 2013). ECB funding was reduced to €880 mn at 31 December 2014 from €920 mn at 30 September 2014. Post 31 December 2014, ELA and ECB funding were reduced further by €200 mn and €50 mn, respectively.
¡ Loans in arrears for more than 90 days (90+ DPD)3 decreased by 3% during the fourth quarter of 2014 and totalled €12.653 mn at 31 December 2014, representing 53% of gross loans (90+ DPD ratio). The provision coverage ratio of 90+ DPD improved to 40%4 (compared to 38% at 30 September 2014), while taking into account tangible collateral at fair value, the 90+ DPD are fully covered.