Group Financial Results for full year to December 31, 2021

Announcements

Press Release

Return to profitability with solid capital position.

AstroBank records €3.3 million net profit.

AstroBank recorded a net profit of €3.3 million in 2021, and €18 million before provisions, stemming from the Bank’s new, rationalized, organisational structure and focused business efforts. During a press conference on Wednesday, May 25th, the Bank also said it has reduced its NPEs to 25.6% at the end of 2021, from 30.3% the previous year.

The Bank’s capital adequacy ratio was 16.58%, up from 15.02% the previous year. The improvement reflects internal capital generation through profitability and reallocation of capital commitments on assets. The Core Tier 1 ratio, consisting of common equity, stood at 15.31% at the end of 2021.

Liquidity remained strong during the year with an LCR ratio of 260% at the end of 2021. The loans to deposits ratio remained stable at 52%.

AstroBank continued to strengthen its presence with substantial new loan origination almost exclusively focused on the Cypriot market. During the year, AstroBank advanced new loans of c. €240 million, one-third of which being retail, mainly mortgages benefiting from the government’s interest subsidy scheme, and two-thirds SME qualifying loans.  

The Chief Executive Officer of AstroBank, Mr Aristidis Vourakis said: “Despite the challenges posed by the pandemic, AstroBank continued its growth in 2021, further strengthening its position in the Cypriot market with new loans reaching €240 million. The Bank has also managed to reduce its NPEs from 30.3% at the end of 2020 to 25.6% last year, and 24% in Q1 2022.

“The sale of real estate (REOs) reached €29 million in 2021 and we are on track to at least reach the same levels this year, with €30 million worth of properties sold or committed to be sold so far.

“The war in Ukraine has certainly created new challenges, though AstroBank has no direct credit exposure to either country therefore it is not expected to be directly impacted.

“Looking ahead, AstroBank will focus on developing a quality retail client base and mid-market corporate loan book, continuous cost efficiencies through operational improvements, and accelerating NPE resolutions and REO sales.”

AstroBank is a Cyprus-licensed Banking Institution that was established in 2008 and operates under the supervision of the Central Bank of Cyprus. It employs around 420 staff and has 15 branches across the island. It has around €3 billion in total assets and its equity amounted to €190 million on 31 December 2021.

 

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