BANK OF CYPRUS PUBLIC COMPANY LTD: Profitable and Awarded International Awards Recently the Bank earned yet another international recognition. In early September and for the fifth time in six years The Banker magazine proclaimed Bank of Cyprus as Bank of the Year for Cyprus. The Bank achieved significant improvement in profitability indicators, arising from cost cutting, in parallel with an increase in income in Cyprus and in Greece. Profit after tax for H105 increased by 98%. The Group's cost to income ratio decreased from 67,3% in 2003 to 62,0% in 2004 and 59,1% in H105. As Mr. Andreas Eliades, Group Chief Executive Officer, stated "The Bank of Cyprus Group continues its efforts to increase profitability with the continued dynamic penetration of the Greek market and its plans to expand beyond its traditional markets to new markets that present high growth opportunities. In parallel, the Group has intensified its efforts to improve pricing, risk management and cost containment. The main focus of the group is to provide customers with the best quality service using increasingly cost effective procedures, through a variety of alternative distribution channels and innovative products that aim to satisfy the needs of each and every customer." Growth Strategy The Group's strategic plan for 2005-2007 three year period includes among other things, increase in productivity in line with organizational restructuring of the customer service network. In parallel the Bank of Cyprus Group plans to further develop customer services through the introduction of new products and entrance into new markets. Moreover the organization aims to improve its loan portfolio quality and continue its dynamic expansion overseas. In this context the Group aims by 2007 to increase Return on Equity (ROE) to more than 13%, and reduce its cost to income ratio to below 58% compared to 59% in H105. Τhe Bank of Cyprus Group is the largest listed company in the Cyprus Stock Exchange in terms of market cap (Euro 1.82 billion) and one of the top Cypriot banking and financial services organization. It has extensive presence in Greece, the United Kingdom and Australia and also representation in the United States, Canada, South Africa, Russia and Romania. At 30 June 2005, the Group reported a remarkable increase in profits after tax by 98%, at Euro 55 million versus 28 million in H104. In Cyprus, core profit recorded a 52% increase to reach Euro 82 million. In Greece, core profit reached Euro 50 million, contributing 35% to the Group total, while in the UK and Australia core profits increased by 30%. Group equity in H105 amounted to Euro 1.03 billion while total assets reached Euro 19.84 billion. by Capital Link
September 28, 2005
