Massive profits for Laiki’s third quarter

THE Laiki Bank Group reported a 90.3 per cent increase in its nine-month net profit yesterday.

Net profit rose to £30.4 million from £16.02 million in the same period of 2004. Operating income was up 11.6 per cent at £183.1 million, Cyprus’ second largest financial group said.
“Based on present data, it is expected the profitability of the group for 2005 will be significantly improved over that of 2004,” Laiki said in a statement.

“Indications for the Cyprus economy are positive and tourism has also shown a positive movement.”

Laiki’s said its operating profit was enhanced by an improvement in interest margins – the profit made by reaping interest for services, better debt collection, and yields on cash deposits in foreign exchange, it said.

It said it had also lowered its bad debt provisionings. Provisions for impairment of advances was down to £34.12 million, compared to £35.1 million in the same period of 2004.
Britain’s HSBC holds a 22 per cent stake in the group.

Earlier this month Laiki said it planned to acquire a majority stake in Serbia’s Centrobanka for between 38 and 45 million euros. The group now has branches in Greece, Britain and Australia.
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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.