Interest rate increases boost Cypriot banks' 2022 profits to €177 million

Bank of Cyprus and Hellenic Bank generated a combined profit of €164.7 Million in Q1 2023, Driven by interest rate increases.

In the first quarter of 2023, the Bank of Cyprus and Hellenic Bank achieved a remarkable combined profit of €164.7 million, primarily attributable to the surge in interest rates.

Notably, their net interest income has experienced significant growth, resulting from deposits placed with Central Banks and other financial institutions following the continuous interest rate hikes announced by the European Central Bank (ECB) since July 2022.

Bank of Cyprus reported net interest income of €162 million for Q1 2023, surpassing the €136 million recorded in Q4 2022. The bank attributes this rise to interest rate increases and the delayed pass-through of interest rate hikes to deposit costs. The increase in net interest income amounted to a substantial 127% on a year-on-year basis.

Hellenic Bank's net interest income for Q1 2023 reached €108.1 million, marking a 74% increase compared to €62.1 million in Q1 2022. Hellenic Bank explains that this year-on-year rise is primarily due to higher net interest income from deposits placed with central banks, other banks, and securities, in response to the ongoing interest rate increases announced by the ECB.

During the first quarter of 2023, the Bank of Cyprus achieved a profit of €95 million, while Hellenic Bank recorded a profit of €69.7 million.

Furthermore, the interest rate hikes in 2022 also contributed to significant gains. When considering profits across all banking institutions, the total reached €177 million. Based on the financial results of Cypriot banks for 2022, Bank of Cyprus reported a profit of €71 million, Hellenic Bank achieved €24.1 million, Eurobank Cyprus attained €57.3 million (over a nine-month period), Astrobank secured €12.2 million, Alpha Bank Cyprus garnered €6.5 million, National Bank of Greece (Cyprus) acquired €2.9 million, and Ancoria Bank achieved €3 million in profits.

[This article was translated from its Greek original]