Big two banks expect increased profits

THE Bank of Cyprus (BoC) and Marfin Popular Bank (MPB) are both expected to record profits for the second quarter of the year, according to financial forecasters.

Based on the latest report from the Greek National Securities – P&K, the BoC is predicted to achieve Q2 profits of €131 million, something that would constitute an annual increase of six per cent. The island’s largest lender is expected to rake in a net income of €195 million from interests, a rise of two per cent.

Marfin Popular Bank’s profits are expected to reach €117 million, up 14 per cent, with a net income from interests predicted at €180 million, an increase of six per cent.

“Our position remains expecting continued volatility in our universe’s performance, favouring specifically the Bank of Cyprus, as it appears to have a higher quality portfolio that is better provisioned in addition to the resiliency to the stress testing performed in our previous report. Moreover, the recent acquisition of Uniastrum Bank in Russia is expected to create a third pillar of development for the Group”, the report noted.

The Bank of Cyprus is expected to announce its official results for the second quarter of 2008 tomorrow.

The Cyprus Mail is the only English-language daily newspaper published in Cyprus. It was established in 1945 and today, with its popular and widely-read website, the Cyprus Mail is among the most trusted news sites in Cyprus. The newspaper is not affiliated with any political parties and has always striven to maintain its independence. Over the past 70-plus years, the Cyprus Mail, with a small dedicated team, has covered momentous events in Cyprus’ modern history, chronicling the last gasps of British colonial rule, Cyprus’ truncated independence, the coup and Turkish invasion, and the decades of negotiations to stitch the divided island back together, plus a myriad of scandals, murders, and human interests stories that capture the island and its -people. Observers describe it as politically conservative.