Coops record €41.2 net profit in 2014

Coops record €41.2 net profit in 2014

The Cyprus Cooperative Sector recorded net profit amounting €41.2 for 2014, despite increased provisions amounting to 2,97 billion the Coop sector assumed due to the continued financial crisis.

Profit from interest rates reached 378.4 million compared to €411.7 in 2013, whereas total net profits accelerated to €392.3 million compared with €377.8 million in 2013. Operating profit reached €192 million marking an increase of 10.15% compared with €174.3 in 2013.

On December 31 2014, the Coops balance sheet stood at €13.94 billion including total own capital of €1.25 billion, while the Core Tier 1 Capital reached 13.5%.

The Coope sector`s total loans, after provisions, reached €10.1 billion marginally reduced compared with €10.8 billion in 2013, portraying the Cypriot businesses and households` delevaraging efforts amid a prolonged financial crisis.

Loans 90 days past due (90 DPD) reached €6.7 billion representing 51.1% of the total loan porfoilio whereas non performing loans ration at 31 December 2014 stood at 55.8%. Investments held until maturity reached €2.4 billion, of which €1.5 billion represent an ESM bond and the remaining €0.9 billion concern Cypriot Development Stock.

The Coop sector deposits reached €12.4 billion marking a decrease of 8.14% compared with €13,5 billion in 2013. The reduction reflects the adverse economic conditions facing Cyprus and the reducing income of the Cypriot business and households, the Coop said, adding however that the Coop sector registered net flows amounting to €0.5 billion following the announcement of the EU-wide stress test carried out by the ECB.

The Coop sector has been nationalised as the Cypriot government covered its projected €1.5 bilion capital shortfall. The funds came from the €10 billion financial assistance package from the EU/IMF, while the Coop sector shrank from 193 distinct cooperative credit institutions branches to 18 under the Cooperative Central Bank, one of the state aid conditions.